India’s innovation ecosystem is thriving, driven by a growing network of global capability centres (GCCs) and multinational AI firms. These hubs are producing world-class ideas and technologies on Indian soil, yet a critical question remains: who owns the innovation being created in India? Industry leaders and policymakers are increasingly concerned that while India’s talent fuels global innovation, much of the intellectual property and its economic rewards are being registered and Monetized abroad.

Breakdown (Continuous Narrative)
The debate over intellectual property ownership gained new traction when Sridhar Vembu, founder and chief scientist at Zoho, urged foreign AI companies and GCCs operating in India to register their patents domestically. His argument was straightforward: India’s engineers are creating immense value, but the country sees only a fraction of the returns.

The numbers reflect both progress and imbalance. India’s patent filings increased from 39,400 in 2010–11 to 64,480 in 2023, placing the country sixth globally. Between 2010 and 2025, India filed more than 86,000 AI-related patents, accounting for over one-fourth of all technology patents in the country. Machine learning leads this trend, and generative AI patents now represent 28 percent of India’s AI filings, far higher than the global average of six percent. Despite this growth, only 0.37 percent of AI patents in India are approved, a figure that underscores slow review cycles and limited institutional capacity.

Experts argue that the issue is not innovation, but ownership and speed. India’s patent cycle averages nearly four years, compared with less than 18 months in leading economies. Complex tax structures and low private-sector R&D spending, which still stands below one percent of GDP, further discourage domestic filings. “Retaining IP in India determines where the innovation value and recognition ultimately land,” said industry analyst Sunil Padmanabh. He added that simplifying the filing process, clarifying tax rules, and offering state-level incentives could make India a more attractive place to register patents.

The conversation, however, is not just about where patents are filed, but what that decision signifies. “Patents are strategic declarations of intent,” said Namita Adavi, partner and head of GCCs at Zinnov. “Companies decide filing locations based on where they plan to manufacture, sell, and protect their innovations. India’s ability to capture this value depends on the strength and efficiency of its IP framework.”

GCCs are also evolving. Once viewed primarily as operational back offices, many are now becoming recognised as innovation hubs. “The number of patents filed is now a key metric for GCCs to showcase their innovation performance to parent organisations,” noted Ashutosh Sharma, vice president and research director at Forrester. This shift signals that India’s innovation centres are maturing from execution hubs to drivers of intellectual leadership.

Why This Matters
Intellectual property ownership determines who benefits most from innovation. As India becomes a key contributor to global research and AI development, ensuring that patents created in the country are filed locally is vital to building national wealth and technological sovereignty. Faster approvals, simplified processes, and consistent enforcement would help India transform from an innovation service hub into a true IP powerhouse.

The Big Picture
India’s IP evolution aligns with major national missions such as Make in India and Digital India. Recent policy measures to digitise filings, improve transparency, and streamline enforcement indicate progress, though challenges remain. With more than 1,700 GCCs and thousands of multinational R&D units operating in India, the opportunity to capture and retain value is immense. If India can shorten approval timelines, improve tax clarity, and make domestic filing more rewarding, it will shift from being a platform for innovation to a centre of ownership and influence in the global technology economy.

The Crunch
India’s next innovation milestone will not be defined by how much it creates, but by how much it owns. The ideas shaping the future of AI, design, and technology are already being built here. The challenge now is ensuring that the economic, strategic, and intellectual value of that innovation remains in India. Building faster systems, transparent tax structures, and globally competitive IP frameworks will determine whether India remains the world’s innovation lab or becomes the world’s innovation leader.