India's Innovation Landscape Set for Growth, Says Finance Minister GCCs, primarily driven by multinational corporations, have seen rapid growth in India, with nearly 56 per cent of their revenue now coming from research and development (R&D) services.

Finance Minister Nirmala Sitharaman highlighted the promising future of India's innovation ecosystem, stating that the country's ability to innovate is expected to mature and improve significantly over the coming decades. Referring to the recently released Global Innovation Index (GII) for 2023, she noted that India has been consistently performing above average in innovation for its income group. Speaking at the Kautilya Economic Conclave, Sitharaman emphasized the steady maturing of innovation potential across various sectors. "India's innovation ability will mature and improve over the coming decades. As the global innovation index for 2023 shows India has been performing above average in innovation for its income group. There is a gradual maturing of innovation potential across sectors."

Particular attention was given to the services sector, which has seen remarkable growth in both exports and innovative potential. "We observe a maturing of India's services sector exports and a rise in innovative potential within this sector," she added, pointing to the increased sophistication and competitive edge of Indian services in the global market.

A key highlight of Sitharaman's speech was the boom in Global Capability Centres (GCCs), which have positioned India as a central hub for innovation. GCCs, primarily driven by multinational corporations, have seen rapid growth in India, with nearly 56 per cent of their revenue now coming from research and development (R&D) services. "The global capability centres (GCCs) boom that we see today has put India squarely at the center of innovation, with nearly 56 per cent of GCC revenue coming from R&D services," Sitharaman said, underscoring India's growing influence in global R&D.

She also pointed out several examples of India's successful low-cost, scalable innovations, citing India's stride and prowess that have come leaps and bounds over the past decade. "Our low-cost scalable innovation is evident in India Stack, low-cost vaccines and the much-celebrated Chandrayaan mission," she remarked, celebrating India's ability to deliver high-impact innovations at a fraction of global costs.

The finance minister's address underscored the government's focus on nurturing innovation as a key driver of economic growth, with an optimistic outlook for India's role in global technological and economic landscapes in the years to come.