India’s innovation engine is running at full speed, powered by a vast network of global capability centres (GCCs) and multinational AI firms. Yet, even as these entities produce breakthrough ideas and technologies on Indian soil, a key question looms about who truly owns the innovation being built in India?
Recently, Sridhar Vembu, founder and chief scientist at Zoho, reignited this debate by urging foreign AI companies and GCCs operating in India to register their intellectual property (IP) domestically. In an interview with Moneycontrol, he argued that while India’s top talent is generating immense value abroad, the country itself sees limited economic returns.
With over 1,700 GCCs and nearly 3,000 centres now operational across India, the urgency of retaining IP value within the country has never been greater.
The Numbers Tell a Story
India’s patent filings have seen a steady rise from 39,400 in 2010–11 to 64,480 in 2023, placing the nation 6th globally in total filings. Yet, the number of patents granted remains disproportionately low when compared to innovation leaders like China, the US, Japan, and South Korea.
Between 2010 and 2025, India filed over 86,000 AI-related patents, representing more than a quarter of all technology patents in the country. Of these, 63% originated in India, a sign of the country’s growing strength in applied AI research and engineering. Machine learning dominates the AI patent landscape, while generative AI now accounts for 28% of India’s AI patents, compared to just 6% globally.
However, this progress is tempered by a low AI patent grant ratio of just 0.37%, slow approval cycles, and limited private-sector R&D investment, which remains below 0.64% of GDP.
Industry leaders say the problem isn’t innovation, it’s ownership and speed.
“Retaining IP in India is critical because it decides where innovation value, tax benefits, and global recognition finally land,” Sunil Padmanabh, industry ecosystem influencer told AIM, emphasising the economic implications of foreign-registered IP. “Today, over 1,700 GCCs operate in India, but most still file their patents abroad due to slow reviews and complex tax rules. India’s patent cycle averages around four years, while top economies clear filings in less than 18 months.”
He added that with India’s R&D investment still under 1% of GDP, every local patent counts. His prescription is clear regarding faster digital approvals, transparent tax treatment for Indian-owned IP, and state-level incentives for in-country filings. “Once filing here is simpler and rewarding,” he said, “India will not just build global IP, it will own it.”
GCCs Coming of Age
The shift in global corporate strategy is already visible, with India-based GCCs increasingly being recognised as innovation hubs, rather than back-office delivery centres.
“The number of patents filed has become a key metric for GCCs to showcase to their parent organisations their innovation performance,” said Ashutosh Sharma, VP and research director, Forrester, a research and advisory firm. “We’re seeing more parent companies calling out their India GCCs as innovation centres or global offices rather than traditional delivery hubs. More patent filings are a sign that GCCs are coming of age, contributing to R&D, not just executing tasks.”
This change, Sharma noted, reflects both confidence and capability, a signal that India’s GCC ecosystem is moving beyond efficiency to intellectual leadership.
While much of the conversation centres on where patents are filed, the why behind these decisions is equally important.
“Patents are strategic moves, much like in a game of chess,” said Namita Adavi, partner and head – GCCs (India) at Zinnov, a global management and strategy consulting firm. “Every filing reflects a deliberate decision that takes into account market size, manufacturing strength, and the robustness of legal protection.
Companies file patents not only where innovations are created, but where they plan to build, sell, and safeguard them, each decision signaling intent to capture opportunity and secure long-term advantage.”
Adavi added that India has evolved beyond being just a manufacturing base to become a centre for governance and strategic decision-making for many global firms.
India is also emerging as the GCC and R&D capital for multiple industries, with a significant share of global design, engineering, and content creation happening here. The massive domestic market here and the country’s position as a gateway to the wider Asian region make it a strategic location for global innovation.
Strengthening the IP Ecosystem
Experts agree that India’s policy evolution is moving in the right direction. The government has been working to enhance IP governance frameworks, improve enforcement, digitise filings, and streamline ownership processes. While challenges remain, such as examination delays and inconsistent enforcement, the overall trajectory is toward greater IP readiness and competitiveness.
“This evolution aligns closely with Make in India and Digital India,” Adavi said. “Rather than a separate IP framework for GCCs, India’s ongoing reforms are already laying the foundation for a system that supports global–local innovation, enabling ideas developed here to be protected here, built here, and taken to the world.”
India’s innovation ecosystem stands at a defining crossroads. With GCCs producing world-class IP and AI research, the next leap will depend on how effectively the nation can translate creation into ownership.
If India can streamline its patent processes, incentivise local filings, and align taxation with global best practices, it could transform from the world’s “innovation lab” into a true IP powerhouse.
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