Harnessing Innovation: How Patent Filings in India Fuel Economic Growth and Global Competitiveness

India is experiencing rapid innovation, driven by a young and focused workforce that is uplifting various industries. The surge in patent filings in the country is not merely quantitative; it is indicative of a fundamental change — India’s evolution from a consumer of innovation to a producer, fostering breakthroughs in renewable energy, pharmaceuticals, tech and more. India is also ushering a new compelling narrative of competitiveness and sustainable economic growth. With futuristic policies, a vibrant startup ecosystem, and commitment to self-reliance at the very core, the nation is gradually becoming a global torchbearer of creativity and innovation. With the world watching in anticipation, India is not just showing the world a progressive way of life but also paving the way for a more sustainable future. The Indian society is increasingly knowledge-based, and patents here play a significant role in developing innovative technologies, building new research, and driving economic growth.

Growth of patents in India

India granted the highest number of patents in FY24 (1,03,057 patents), 17 times higher than 5,978 in FY15, marking a significant milestone in its innovation journey. India’s proactive approach and sustained momentum signal a future of unparalleled progress and global leadership in innovation.

Accounting for 9.3% of total patent filings in FY23, Tamil Nadu surpassed Maharashtra (contributing 6.8%) to take the top spot.

Government subsidies for intellectual property (IP) registrations for startups and Micro, Small and Medium Enterprises (MSMEs), facilitation centres, a strong research and development ecosystem, high literacy rate and an increased number of PhD scholars were some key drivers behind Tamil Nadu's top position.

Source: Intellectual Property India, Annual report 2022–23

The government has been a vital catalyst in this progress, introducing initiatives to empower youth and create opportunities for every Indian to learn, grow, and achieve their potential. Programmes encouraging innovation and intellectual property protection have driven exceptional outcomes.

This increase in patent grants is in line with the rapid growth of the Indian startup ecosystem. As of March 2024, there were more than 1.25 lakh recognized startups in the country, out of which 45% originated in Tier 2 and Tier 3 cities. Startups are leading the country on various fronts in terms of technology.

International rankings and global patent trends

Globally, more than 3.55 million patent applications were recorded in 2023, the fourth straight year of growth in patenting activities. While advanced economies like China, the United States, Japan, and South Korea still have quite a footing, countries in the developing world, like India, are carving their own place on the world map.

Source: WIPO Statistics Database

According to World Intellectual Property Organization (WIPO) report 2024, India rose from ninth position in 2020 to sixth position in global patent filings in 2023.This rise has been driven by advances made in Artificial Intelligence (AI), DeepTech and healthcare.

In 2023, Asia accounted for around 70% of global patent filings. Notably, China and India were the only two countries from emerging markets to feature, with China filing 1.6 million patents and India contributing 64,480.

Upcoming sectors of innovation globally

• Technology Patents : According to WIPO’s 2024 report, computer technology was the field that featured most in all published patent applications across the world during the year 2022, which is the latest year with complete data, given the delay between application and publication of patents. In all, it was said to have contributed 12.4% to the total global applications, followed by electrical machinery with 6.8%, measurement with 5.9%, medical technology with 5.4%, and digital communication with 5.3%.

  The combined share of these five fields rose from 28.8% in 2012 to 35.9% in 2022, particularly on the back of the strong growth of computer-related technology filings. Among the 10 top technology fields, computer technology was the one that grew the most (+10.7%) between 2012 and 2022. Measurement (+7.7%), medical technology (+7.1%), and digital communication (+6.7%) were also areas of significant growth.

  Between 2020 and 2022, the five nations from the top 10 in patent filing who primarily focused on computer technology were China (13.9% of all published applications), India (11%), South Korea (9.4%), the UK (8.9%), and USA (13.8%). Japan (9.8%) led in electrical machinery, while France (11.2%) and Germany (11.7%) were focused on transport systems. The Netherlands (12.7%) and Switzerland (11%) were the most active in medical technology filing.

• Renewable energy : Applications relating to energy technologies—solar, fuel cells, wind, geo-thermal, and hydro—rose from around 29,400 in 2007 to around 44,700 in 2022 marking an increase of 52.04%, with double-digit YoY growth in 2009 (+17.7%), 2010 (+12.6%) and 2021 (+15.1%).

  Solar energy accounted for more than half (54.4%) of all energy-related applications in the 2020-2022 period, with further contributions coming from wind energy (19.4%) and fuel cells (13.2%).

Innovation, IP, and growth: Shaping the future

Economic growth drivers:

• Economic impact of patents

  India’s patent-to-GDP ratio — which is an indicator of the economic impact of patent activity — saw a sharp rise, from 144 in 2013 to 381 in 2023. This indicates the increasing relevance of innovation in promoting economic growth as patent activity is growing in line with India’s economic expansion. This suggests that IP activity is becoming a key metric of economic activity and points out the importance of Research and Development as a foundation of the new economy, which will be driven by IP.

• Trademarks climbing the ladder

  In 2023, India registered a 6.1% increase in trademark filing and held the fourth place in global rankings. Residents accounted for ~90% of these filings, with healthcare (21.9%), agriculture (15.3%) and clothing (12.8%) among the leading sectors. With more than 3.2 million active trademarks, India’s trademark office ranks second in the world in terms of active registrations, reflecting the strong position of the country in terms of global brand protection.

Innovation through diversity and growth:

• Women in innovation

  Women are leading, for a stronger, more innovative tomorrow. The global share of women patent filers rose from 16.5% in CY21 to 17.1% in CY22. In India, their share surged from 10.2% to 11.6% in the same timeframe — proving how critical gender diversity is to innovation and growth.

• Increase in resident filers

  India is not just talking about innovation; it is living it. Patent filings in the country have significantly increased over the years. In 2013, residents filed 24.8% of the total patent applications in the country. By 2023, this proportion increased to 55.2%, marking a substantial rise in domestic innovation. This signals not just growth in numbers, but a deep, widespread embrace of intellectual property at the grassroots level. It demonstrates India’s persistent drive to innovate and carve its own path on the global stage.

Government schemes

India's booming digital economy is undergoing a transformation; however, such a transformation can be beneficial only when IP protection is strong.

The Ministry of Electronics & Information Technology (MeitY), Government of India, established the Centre of Excellence in Intellectual Property (CoE-IP) in 2019. Centre for Development of Advanced Computing (C-DAC), Pune, was designated to set up CoE-IP under the Technology Incubation and Development of Entrepreneurs (TIDE) 2.0 scheme.

CoE-IP facilitates innovators and startups to acquire the necessary services required to protect their ideas like filing patents, prior art queries, patent landscape report, etc.

Key services:

• Intellectual Property Rights Queries
• Prior Art Searches
• Patent Filing Assistance
• Patent Landscape Reports

The Support for International Patent Protection in Electronics and Information Technology (SIP-EIT) Scheme offers financial support for international patent filings, boosting global competitiveness for startups.

SIP-EIT benefits:

• Up to Rs. 15 Lakh (US$ 17,327) reimbursement
• Multiple applications per year
• No stake in supported patents

Government initiatives like Start-Ups Intellectual Property Protection (SIPP) further support startups, promoting IP awareness and facilitating collaboration with educational institutions to scale innovations globally. India is positioning itself as a leader in innovation, empowering startups to scale and thrive on the global stage.

Strategic initiatives:

• Awareness programmes
• International patent support
• Collaboration opportunities

India is at a key moment in its journey towards becoming a global innovation leader. Such an increase in patent filings and grants as well as international rankings is because for the increased focus on nurturing innovation, protecting intellectual property and growing the economy. With an extraordinarily strong startup ecosystem, and government initiatives such as SIP-EIT, CoE-IP, and NIPAM fuelling innovation, India is establishing the bedrock for sustainable innovation.

The narrative of innovation in India is being shaped by the emergence of Tier 2 and Tier 3 startups, women innovators, resident filings, and other driving forces that showcase enhancement in IP and self-reliance. India’s rise in global patent rankings is an indication of its readiness to lead the global competition in upcoming fields such as AI, renewable energy and DeepTech. This would become more streamlined as reforms such as digitised filing and lower pendency periods pave the way for aspiring individuals.