Management Perspectives

The growth estimate for India has been increased by the International Monetary Fund (IMF), which now projects a strong expansion of 6.7 per cent in the fiscal year 2024—an increase from the previous estimate of 6.3 per cent. It is anticipated that this good trend will continue, with consistent growth rates of 6.5 per cent anticipated for the fiscal years 2025 and 2026. India’s remarkable growth rate, which has exceeded 7 per cent over the last three years, can be attributed to the strength of its domestic demand.

This stands in stark contrast to other major economies with modest growth outlooks, which are 2.1 per cent for the US, 0.5 per cent for Germany, 1 per cent for France, 0.9 per cent for Japan, and 4.6 per cent for China. India stands out in the world economy because of the important role that technology, patents, and a strong infrastructure for R&D play. The past ten years have seen proactive government reforms and strategic actions that have contributed to the amazing performance of the Indian economy in recent times. India’s position has improved significantly in the Global Innovation Index, moving up from 81st in 2015 to 40th in 2022. Even if the private sector now accounts for 42 per cent of R&D spending—a considerable rise from 19per cent in 2001–2002—it nevertheless shows India’s dedication to promoting innovation.

The crucial role that technology plays, especially in the area of digitalisation, has opened up new opportunities and encouraged efficiency and creativity in a variety of businesses. India is making great progress in safeguarding intellectual property, fostering innovation, and drawing in foreign investment as seen by the increasing number of patent applications and grants. The number of patent applications increased significantly to 23,141 in 2020, indicating a greater focus on innovation. The exponential increase in patent applications over the last ten years—from 8,841 in 2011 to a startling 26,267 in 2021—demonstrates the strength of the innovation ecosystem and the growing awareness of the value of intellectual property protection. India maintains a large volume of non-resident patent applications—it routinely files more than 30,000 applications per year—which indicates a strong presence in the international innovation community.

The increasing number of non-resident patent applications reflects the region’s attractiveness for international innovators and businesses, suggesting a collaborative and open innovation ecosystem. From 2016 to 2020, the number of scientific publications surpassed the 100,000 mark, reaching 149,212 in 2020. A thriving research community, evidenced by the growing number of publications, contributes to the development of a knowledge-based economy, attracting investment and fostering technological advancements. An important part of this story about innovation is the start-up ecosystem in India. The Union Ministry of Commerce and Industry reports that 3,300 companies are addressing climate change and offering solutions for the expansion of renewable energy.

Despite being minimal at first, Indian entrepreneurs’ use of patents has grown significantly. The number of patents filed increased to 1,598 in 2020–21 from 160 in 2016–17. The percentage of all commercially viable patents climbed from 5.73 per cent in 1990–1996 to 21.57 per cent in 2018, demonstrating how the market is changing and how important start-ups are to the commercialisation of inventions. © Shutterstock.com Early on, from 1990 and 1996, the percentage of all patents that were in effect and could be used for commerce was only 5.73 per cent of all patents. It was around this time that India began to concentrate more heavily on technological breakthroughs. But 2010 marked a major turning point, indicating a substantial increase in the application of patented technologies. The percentage of commercially viable patents increased to 11.23 per cent during this revolutionary time, indicating a stronger dedication to converting novel ideas into useful applications. In the more recent years—that is, in 2017 and 2018—the Indian patent industry has seen significant growth in terms of commercialisation.

According to the data, there has been a noteworthy rise in the total commercial working of patents, with a recorded 23.20 per cent in 2017 and a steady 21.57 per cent in 2018. This increase is a sign of a paradigm shift in India’s understanding of and use of its technical resources. India has demonstrated its dedication to innovation and intellectual capital via its road towards becoming the major economy with the fastest rate of growth. India is positioned as a worldwide economic powerhouse thanks to the combination of technology, patents, and a supportive environment for innovation.