India Innovation Index 2021: The NITI Aayog

The India Innovation Index (III) 2021 was released by the NITI Aayog on 21st July  2022 which is prepared by the NITI Aayog and the Institute for Competitiveness. It has been indicated that the latest 2021 index is based on a set of 66 indicators compared to the same based on 36 indicators in the year 2020. The Innovation Index is expected to review the capacity of states of India in initiating innovation and the latest index is the third in the series.

Modifications have been adapted in the latest edition of the innovation index to compare the same with such indices at the Global level. Patents per million of population, publications in scientific journals, percentage of GDP spending on research, and more such indicators have been considered in III 2021. In addition, emphasis has been given to the education sector by including indicators such as the number of Ph.D. students, enrolment in engineering and technology as well as the number of highly skilled professionals.

The number of Internet subscribers, FDI inflows, etc was the other indicators used in the 2021 index. To be within the top 25th countries in the Global Innovation Index, the report suggests a few measures such as increasing Gross Domestic Expenditure on research and development, promoting private sector participation in R&D, and closing the gap between industry demand and one produces through the education system.

Even though the Niti Aayog has classified States and UTs into three broad groups mentioned above, namely into major states, North-Eastern and Hilli States, and UT and City Index which is unlikely to its other index such as SEQI, Health, SDG, etc index where states are divided into either the major or the smaller states, an attempt has been made in the present note to club all the states into one and are ranked as per its index value, see Table below.

It may be recalled that 17 states are included in major states, 10 in NE & Hill  States, and the remaining 09 states as the UT and City States. On the other hand, Daman & Diu and Dadar & Nagara Haveli are clubbed together.

If considering all the states together, one observed that UT Chandigarh tops the list having the first rank which is followed by another small city-state and the national capital, namely NCT Delhi which is ranked 2nd with an index value of 27.0.

It may be observed that a wide gap is observed between the 1st rank state i.e. Chandigarh (27.88) and the lowest ranked, Ladakh (5.91). Incidentally, Ladakh is also having the lowest rank in the group of Union Territories and the City States. It may be recalled that Ladakh a new UT was recently bifurcated from Jammu and Kashmir.

Karnataka which is ranked at the top of the major states is having the 4th highest index value if all the states are considered together. Another state, namely Manipur with an index value of 19.37 is ranked 3rd which is also at the top of the list in its group of NE and Hilly states.

Telangana and Haryana which are having the second and third ranks in the major states slipped to 6th and 8th states if all the states are considered together. One of the most advanced states in the area of education, namely Kerala which had 8th rank amongst major states slipped to 19th rank. On the other hand, Uttar Pradesh has improved its performance by two places, getting the seventh rank in the India Innovation Index 2021 which is considered a comprehensive tool for the evaluation and development of the country’s innovation ecosystem. UP has been ranked seventh with an index value of 14.22  in the major states category as compared to the ninth rank in 2020.

A good number of other states such as Bihar which ranked 15th out of the 17 states in the category of major states, its rank slipped to 29th position if all the states are considered together.  Andhra Pradesh (9 to 21st rank), Chhattisgarh (from 17 to 34th rank), Gujarat (from 14 to 27th rank), Madhya Pradesh (from 13 to 26th rank), etc. are a few other such states.

 Even in the category of major states, the wide deviation is noticed in the index value if the same is compared with the top (Karnataka, 18.01) and bottom (Chhattisgarh, 10.97) ranked states all of which suggest that states are at different state of innovation and majority of states lack in innovation if their index values are compared with the top-ranked first three states.

India Innovation Index 2022: NITI Aayog


Sl. No




Major States


North-Eastern & Hilly  States


Union Territory & City States


All India (All Sates together)
Index Rank Index Rank Index Rank Rank
1 Andaman and Nicobar Islands 17.29 3 7
2 Andhra Pradesh 13.32 9 21
3 Arunachal Pradesh 15.46 4 13
4 Assam 11.29 9 32
5 Bihar 11.58 15 29
6 Chandigarh     27.88 1 1
7 Chhattisgarh 10.97 17 34
8 D&D & D&D 12.09 7 28
9 Goa 14.93 5 15
10 Gujarat 12.41 14 27
11 Haryana 16.35 3 8
13 Himachal Pradesh 14.62 5 16
14 Jammu and Kashmir 12.83 6 25
15 Jharkhand 13.10 10 22
16 Karnataka 18.01 1 4
17 Kerala 13.67 8 19
18 Ladakh 5.91 9 36
19 Lakshadweep 7.86 8 35
20 Madhya Pradesh 12.74 13 26
21 Maharashtra 16.06 4 9
22 Manipur    19.37 1 3
23 Meghalaya 16 3 10
24 Mizoram 13.41 7 20
25 Nagaland 11 10 33
26 NCT Delhi 27 2 2
27 Odisha 11.42 16 31
28 Puducherry 15.88 4 11
29 Punjab 15.35 6 14
30 Rajasthan 12.88 12 24
31 Sikkim 13.85 6 18
32 Tamil Nadu 15.69 5 12
33 Telangana 17.66 2 6
34 Tripura 11.43 8 30
35 Uttar Pradesh 14.22 7 17
36 Uttarakhand 17.67 2 5
37 West Bengal 12.98 11 23

Source: NITI Aayog Innovation Index 2022, Government of India. Readers are advised to refer source of information and give full reference to the material used in any form.

The Indian Innovation Index 2021, NITI Aayog, Government of India

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