India’s innovation landscape transformed

Source: The post India’s innovation landscape transformed has been created, based on the article “Manpreet Badal writes: There is a start-up revolution in India” published in “Indian Express” on 19th October 2024

UPSC Syllabus Topic: GS Paper 2 Governance– Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Context: The article highlights India’s rise as a global innovation leader, driven by a strong start-up ecosystem, government initiatives, and expanding entrepreneurship. Key policies and programs have boosted India’s innovation ranking, benefiting sectors across the country, including smaller cities.

For detailed information on The Indian Innovation That Can Change the World read this article here

How has India’s innovation landscape transformed?

1. India has undergone a remarkable transformation in innovation. It moved from the third quartile to becoming a global leader in technology and creativity.
2. The country’s start-up ecosystem is now the third-largest in the world. India had 111 unicorn start-ups in January 2023, valued at over $350 billion.
3. By 2030, the number of tech start-ups is expected to grow from 68,000 to 1,80,000.
4. Innovation is spreading to Tier-2 and Tier-3 cities, showing that entrepreneurship is growing beyond major urban centers.
5. India is ranked first among 37 lower-middle-income economies and first in Central and Southern Asia.
6. Globally, India improved from 81st in 2015 to 40th today. It ranks 5th in ICT services exports, 6th in venture capital received, 11th in science and engineering graduates, and 13th in global corporate R&D investors.

What initiatives have contributed to India’s innovation rise?

1. Robust Innovation Ecosystem: India’s rise is driven by a strong innovation ecosystem that includes vast knowledge capital, a dynamic start-up landscape, and collaborations between public and private research entities. The NIDHI (National Initiative for Developing and Harnessing Innovations) programme by the Department of Science and Technology has set up technology business incubators and science parks across the country, fostering innovation commercialization.
2. Government-led Initiatives: Government initiatives, including those by the Departments of Science and Technology, Biotechnology, and the Atal Innovation Mission (AIM), have played crucial roles. AIM established 4,880 operational Atal Tinkering Labs in over 650 districts and 102 Atal Incubation Centres, nurturing more than 900 start-ups.
3. Policy-driven Innovation: NITI Aayog has optimized efforts in strategic sectors like electric vehicles, biotechnology, nanotechnology, space, and alternative energy.
4. Progress in Key Indicators: India has made significant progress in domestic industry diversification, patent origination, and exports of cultural and creative services.
5. Highest Innovation Quality: Among lower-middle-income countries, India has the highest innovation quality. Its Global Innovation Index ranking improved from 81st in 2015 to 40th in the world today.

How have specific sectors benefited?

1. Railway Sector: NITI Aayog partnered with the Ministry of Railways to fast-track railway station redevelopment through public-private partnerships, enhancing infrastructure.
2. Pharmaceutical Industry: Indian pharmaceutical firms adopted contract manufacturing and clinical trials for multinational companies. This allowed them to integrate into global innovation chains.

What is the broader cultural impact of innovation?

A culture of innovation is now seen across the country, from schools to top sectors. This national movement is creating millions of young innovators and entrepreneurs. The growth is driven by a strong vision, notably from Prime Minister Narendra Modi.

Question for practice:

Evaluate how government-led initiatives and policy-driven innovation have contributed to India’s rise as a global innovation leader.