Innovation Ecosystem in India

National Manufacturing Innovation Survey (NMIS), 2021-22


From UPSC perspective, the following things are important :

Prelims level: National Manufacturing Innovation Survey (NMIS)

Mains level: Read the attached story

Central Idea: The Department of Science and Technology under the Ministry of Science & Technology has released the National Manufacturing Innovation Survey (NMIS) 2021-22.

About National Manufacturing Innovation Survey

Undertaken by DST and United Nations Industrial Development Organization (UNIDO)
History First National Innovation Survey in 2011
Focus Manufacturing competitiveness
Purpose Innovation performance of Indian manufacturing firms
Insights Enabling activities and identifying barriers to innovation
Processes Examines innovation processes, outcomes, and barriers faced by firms
State/Sector Evaluates performance of states and sectors in producing new products, services, and business processes
Key manufacturing sectors 5 sectors: textiles; food & beverage; automotive; pharma; ICT.


Components of the survey

(1) Firm-level survey


  • It captured data related to types of innovations and innovative measures taken by firms.
  • Includes: the process of innovation, access to finance, resources, and information for innovation, besides also recording the factors impacting the innovation activities in a firm.
  • One in four firms have successfully implemented an innovation in the observation period.
  • Over 80% of these firms benefitted significantly in expanding markets and production and reducing costs.

(2) Sectorial System of Innovation survey


  • It mapped the manufacturing innovation system and its role in achieving innovations in firms.
  • It measures the interactions between stakeholders of the innovation ecosystem, barriers to innovation, and the convergence or divergence of policy instruments in select 5 key manufacturing sectors important to the Indian economy.

Key highlights

  • Karnataka is the most “innovative” State, followed by Dadra and Nagar Haveli, Daman and Diu (DNH&DD), Telangana, and Tamil Nadu.
  • Telangana, Karnataka, and Tamil Nadu had the highest share of innovative firms at 46.18% ,39.10% and 31.90%, respectively.
  • Odisha, Bihar, and Jharkhand reported the lowest share of such firms at 12.78%, 13.47% and 13.71%, respectively.
  • Nearly three-fourths of the 8,000-odd firms surveyed, most of them micro, small, and medium enterprises (MSME), neither made any innovative product nor process innovation.
  • However, nearly 80% of the firms that did report significant gains such as expanding markets and reducing production costs.

Barriers identified

  • The most frequent “barriers to innovation” were the lack of internal funds, high innovation costs, and lack of financing from external sources.
  • Gujarat and DNH&DD reported the highest frequencies of barriers to innovation, despite being among India’s most industrialised States.

Significance of the survey

  • It will help in the Make-in-India programme, specifically the Production Linked Incentive (PLI) schemes.
  • It will help to boost manufacturing in a variety of sectors, including electronics, pharmaceuticals, and automobiles.



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