India’s Innovation Performance: PLI, RDI, Startups & Semiconductor Growth

The Economic Survey 2025–26, highlights India’s steady improvement in innovation performance.

Improvement in Global Innovation Index Ranking

• Global Ranking: India’s rank improved from 66th (2019) to 38th (2025) in the Global Innovation Index.
• Regional Leadership: India now ranks first among lower middle-income countries and first in the Central and Southern Asia region.
• Innovation Clusters: Bengaluru, Delhi and Mumbai feature among the top 50 most innovation-intensive clusters globally

Key Factors contributing to Innovation Performance

• Production Linked Incentive (PLI) Scheme:
  • The PLI Scheme, launched in 2020, aligns with the vision of Aatmanirbhar Bharat and currently spans 14 key sectors.
  • Financial Outlay: The scheme has a total outlay of ₹1.97 lakh crore
  • Investment and Output:
    • Actual investment realised: over ₹2.0 lakh crore (till September 2025)
    • Incremental production/sales: over ₹18.70 lakh crore
  • Employment Impact: The scheme has generated over 12.60 lakh jobs (direct and indirect)
  • Export Performance: Exports under PLI-supported sectors have exceeded ₹8.20 lakh crore, led by electronics, pharmaceuticals, and telecom & networking products.
  • Manufacturing Shift: The Economic Survey notes that PLI has encouraged major smartphone companies to relocate production to India, making India a major mobile phone manufacturing hub.
• National Manufacturing Mission (NMM):
  • Launch: The National Manufacturing Mission (NMM) was announced in the Union Budget 2025–26.
  • It represents the foundational policy blueprint for accelerating industrial growth and global competitiveness over the next decade.
  • Policy Role: The Economic Survey describes NMM as the foundational policy blueprint for accelerating India’s industrial growth and global competitiveness over the next decade.
  • Complementarity: NMM is designed to complement the PLI Scheme in strengthening manufacturing capabilities.
• Research, Development and Innovation (RDI) Scheme:
  • The Government announced a Research, Development and Innovation (RDI) Fund in 2025 with outlay of  ₹1 lakh crore over six years.
  • Aim: To strengthen India’s research ecosystem by fostering private sector participation in scientific and technological innovation through long-term financing at low or nil interest rates.
• Institutional Reform: Anusandhan National Research Foundation
  • Legal Framework: The Anusandhan National Research Foundation (ANRF) was established under the ANRF Act, 2023
  • Mandate of ANRF: ANRF is intended to provide strategic direction, competitive funding, and collaboration pathways across industry, academia and government.
  • Purpose: It addresses structural challenges in India’s R&D ecosystem and promotes mission-oriented research.
  • The Governing Board of Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister, provide strategic direction to the RDI Scheme.
• Startup Ecosystem Growth:
  • Startup India Initiative: Since the launch of Startup India in 2016, DPIIT-recognised startups increased from around 500 to over 2 lakh by 2025.
  • Innovation Output: The Economic Survey notes a marked growth in India’s overall innovation output
• India Semiconductor Mission:
  • Objective:  The India Semiconductor Mission aims to address structural vulnerabilities and build a resilient domestic semiconductor ecosystem
  • Core Programmes: The India Semiconductor Mission and Semicon India Programme form the backbone of this strategy.
  • Incentive Framework: Supported by a ₹76,000 crore incentive framework
  • Targeted Schemes: Four schemes provide 50 per cent fiscal support of project cost or capital expenditure for:
    • Semiconductor and display fabs
    • Compound semiconductor facilities
    • Outsourced semiconductor assembly and testing units
    • A Design Linked Incentive scheme to encourage domestic chip design
• Semiconductor Ecosystem Development:
  • As of August 2025, 10 semiconductor manufacturing and packaging projects have been approved.
  • Investment Scale: These projects involve a cumulative investment of around ₹1.60 lakh crore across 6 states.
  • State-Level Support: States such as Odisha have introduced complementary policies, including the Semiconductor Manufacturing and Fabless Policy, offering additional incentives.

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• Performance in Intellectual Property:
  • Global Rankings (2024):
    • 4th in trademarks
    • 6th in patents
    • 7th in industrial designs
  • Growth Trends: From FY20 to FY25,
    • Patent applications nearly doubled
    • Trademark registrations grew 1.5 times
    • Designs registered increased 2.5 times
  • WIPO Assessment: The World Intellectual Property Organization (WIPO) ranks India 12th globally for entrepreneurship policies and entrepreneurship culture.

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