India has made steady progress in the Global Innovation Index (GII), now ranking 38th overall in 2025, says Prof. Soumitra Dutta, founder of the Portulans Institute. Despite lagging in innovation inputs—such as institutions, infrastructure, and business sophistication—India performs strongly in innovation outputs, placing 32nd globally.
Dutta, who launched the GII in 2007, explained that traditional innovation metrics like patents and scientific papers often miss the full picture in emerging economies. His index expands the definition to also include regulatory context, market conditions, creative industries, and grassroots innovation.
Key drivers of India’s rise include ICT services exports, a vibrant startup ecosystem, and the emergence of city-based innovation clusters, especially in Bengaluru, Delhi, and Mumbai. Dutta noted that several Indian cities now rank among the top 100 global clusters.
However, he warned that India’s R&D spending remains low, at ~0.7 % of GDP, far behind global innovation leaders. He also flagged gaps in private sector R&D, weak university-industry links, and limited infrastructure for deep tech innovation. To bridge this gap, Dutta recommends:
- Incentivizing private R&D through tax credits and matched funding
- Strengthening tech transfer, shared labs, and industry-embedded PhD programs
- Building stronger intellectual property mechanisms (especially for software, algorithms, and creative assets)
- Developing clear cluster strategies at the city level with specialization in sectors like manufacturing and deep tech
Looking ahead, Dutta believes AI will reshape the innovation landscape, favoring economies with robust data infrastructure, talent, and capital. He said top clusters like Bengaluru and Delhi could evolve into AI superclusters if they align compute, investment, and policy.
