India's vision of becoming a $ 5 trillion economy is complexly connected with an innovation-oriented approach to economic expansion. While most governments are looking inward, in the current Covid-19 crisis-hit world, India is utilising this opportunity to create its innovative capacities to fulfil future international demands by delivering a spectrum of new approaches, services, and products.
India has mounted two places and has been ranked 46th by the World Intellectual Property Organization in the Global Innovation Index 2021 rankings. India has been on a rising course over the past several years in the Global Innovation Index (GII) from a rank of 81 in 2015 to 46 in 2021.
Innovation is a vital driver of economic advancement that helps customers, industries, and the economy in its entirety. In financial terms, innovation defines the development and application of visions and technologies that enhance goods and services or make their production more efficient. India is moving towards an innovation-led economy, because inventions bring new concepts and technologies, and produce more important outputs with the same input. This results in better-made goods and services, boosting earnings and business profitability.
India fosters innovation by executing structural standards such as improved spending on research and development, funding in education, and facilitating entrepreneurs to initiate an enterprise more efficiently and for failed businesses to retire the market more quickly. It is also carrying its intricacy to its benefit by utilising the extensive and heterogeneous user segments in India that are keen on exploring new solutions to their unmet needs. The combination of strong capabilities and mature varieties makes India a productive innovation base.
India is comprehensively prepared to steer in a new age of creation and expansion in the current scenario. Compelled by 'Atmanirbhar Bharat' and 'Make in India' endeavours, there is a solid stimulation to empower the regional manufacturing sectors that would, in turn, contribute to the production of innovative products at economical rates. Along with improving the production scale, India has also strived to enhance its study capabilities by introducing new Science, Technology, and Innovation Policy 2020. These efforts play a critical part in promoting the country's innovative power.
The government's Atal Innovation Mission, DST-NIDHI's PRAYAS, Digital India and Startup India has also uplifted the entrepreneurial spirit. These initiatives have facilitated access to the essential resources to harness the youthful vibrancy of the country. The current innovation ecosystem has been made a part of India's policy plan to expand, bolster and drive a positive impact.
The past decade has seen numerous Indian harboured brands (startups or otherwise) tapping into the global market with their product and service. Whether it's a premium skincare brand like Forest Essentials or an affordable brand like Lenskart, this approach is still impeccable. They create an ingenious solution to an existing void and ensure that they craft high-quality products and services. Service brands like Ola and Zomato are positively expanding their offerings across nations after having perfected their product through numerous rotations of iteration with user segments in India. Indian creators are creating services and products designed to provide an increase in complex capabilities related to technological constraints, user segmentation, and competitive prices. This allows for the advantageous transfer of innovations to different markets with parallel potential demands. India is an invention creator among emerging countries, and it demonstrates its innovation leadership in other developing countries in a unique way.
As India steers into an undetermined future where the global economy is still staggering from the pandemic, innovation harbours the key to transitioning any developing economy toward the developed class. India has the potential and ability to be such a country that alters its economic originality by leaning on innovation.
This article is co-authored by Kanika Verma and Bhakti Jain.