Karnataka retains top position at India Innovation Index ranking

Karnataka has maintained its top position among the major states’ category in Niti Aayog’s India Innovation Index rankings released on Wednesday. The federal policy think tank said innovation had become more important than ever to revitalize the economy in a post-pandemic world.

Maharashtra leapfrogged Tamil Nadu to take second place in the rankings, followed by Telangana, Kerala, Haryana, Andhra Pradesh, Gujarat, Uttar Pradesh and Punjab. Among Union territories, and Northeastern and hill states, Delhi and Himachal Pradesh took the top spots, respectively.

“Karnataka’s rank is attributable to its substantive number of venture capital deals, registered geographical indicators and information and communications technology exports. Karnataka’s high Foreign Direct Investment (FDI) inflow has also enhanced the innovation capabilities of the state. Four southern states—Karnataka, Tamil Nadu, Telangana and Kerala—occupied the top five spots under the ‘Major States’ category this year,” a Niti Ayog report said.

Overall, Delhi retained its number one rank. Chandigarh made a big leap since 2019 and grabbed the second place this year. In the Northeeastern/hill states category, Himachal Pradesh moved up from the second position to emerge as the top ranker this year. The top 2019 performer in this category, Sikkim, slipped to the fourth spot.

“As the world grapples with the Covid-19 pandemic this year, the significance of innovation is even more greatly felt. While innovation has always been pivotal for higher productivity and economic growth, it is also crucial for bolstering a post-crisis economy. In this light, the foresight of the central government in fostering a culture of innovation through initiatives like the Atal Innovation Mission, Startup India, etc. is laudable,” Niti Aayog vice chairman Rajiv Kumar said.

“The second edition of the index will allow states to continue to evaluate their innovation environment and assess their progress. The division of innovation into two dimensions, namely innovation capabilities (Enablers) and innovation outcomes (Performance) will give the states a better perspective for identifying the critical focus areas.,” he added.

The last edition of the India Innovation Index, released in October 2019, was a first-of-its-kind metric for assessing the innovation capabilities of Indian states and Union territories.

“Since then, India, and the world, have undergone a tectonic shift due to the Covid-19 pandemic. With the pandemic triggering an economic shutdown, the role of innovation to revitalize the economy, has never been more important,” the report said.

“I hope that the India Innovation Index 2020 can help the country in recognizing the key areas of developmental intervention, with innovation as the central driver for growth,” Niti Aayog CEO Amitabh Kant said.