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Innovation: Trending Up but needs 08

thrust, especially from the Private

Sector CHAPTER

“If a rare opportunity occurs, while it lasts, let a man do that which is rarely
to be accomplished (but for such an opportunity)”.

― Thirukural, Chapter 49, verse 489.

India entered the top 50 innovating countries for the first time in 2020 since the inception
of the Global Innovation Index (GII) in 2007, by improving its rank from 81 in 2015 to
48 in 2020. To herald this significant achievement while setting out the path for further
progress, the Survey examines India’s innovation performance on various dimensions.

India ranks first in Central and South Asia, and third amongst lower middle-income
group economies. Among the seven pillars of the GII, India ranks 27 in knowledge and
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technology outputs (KTO); 31 in market sophistication; 55 in business sophistication;
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60 in human capital and research (HCR); 61 in institutions; 64 in creative output; and
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75 in infrastructure. Among sub-pillars, India ranks tenth in knowledge diffusion and 15
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in trade, commerce and market scale. Among parameters, India ranks first in ICT services
exports; third in domestic market scale (PPP); ninth in government’s online services;
ninth in growth rate of productivity; 12 in science and engineering graduates; 13 in
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ease of protecting minority investors; 15 in e-participation; 16 in average expenditure
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of top three global R&D companies; and 19 in market capitalisation.
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India’s ranking on innovation outputs improved from 69 in 2015 to 45 in 2020. Its
ranking on KTO almost halved from 49 in 2015 to 27 in 2020 while ranking on creative
outputs improved from 95 in 2015 to 64 in 2020. India’s innovation input sub-index
ranking improved from 100 in 2015 to 57 in 2020. This improvement was led by business
sophistication, where ranking improved from 116 in 2015 to 55 in 2020. India’s ranking
on Institutions improved from 104 in 2015 to 61 in 2020. Its ranking on HCR improved
from 103 in 2015 to 60 in 2020. Its ranking on market sophistication improved from 72
in 2015 to 31 in 2020. India’s ranking on infrastructure improved from 87 in 2015 to 75
in 2020.

The GII also highlights areas with scope for improvement. India ranks 107 on education
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sub-pillar, mainly on account of ranking 118 on pupil-teacher ratio in secondary
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education; 115 on new business per thousand population in ages 15-64; 108 on tertiary
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