Why is the number of patents granted in India still a fraction compared to China and US, even though…

Question

Why is the number of patents granted in India still a fraction compared to China and US, even though India's global position in innovations has been rising over the years ?

Ghissu Editorial · Accepted Answer

India grants far fewer patents than China and the US due to examiner shortages, backlogs, strict criteria like Section 3(d), costly filing and R&D spending of only 0.65% of GDP against China's 2.68%. Its rising innovation rank (39th in the 2024 Global Innovation Index) rests largely on less patent-intensive services.

**Introduction**

India’s 39th rank in the Global Innovation Index⟦1⟧ 2024 reflects rising innovation, but patent grants remain low compared to China and the US due to structural and policy factors.

**Factors Behind Low Patent Grants**

1. **Examiner Shortage and Backlogs**: With only 132 examiners in 2016-17 handling nearly 2 lakh pending applications, patent grants face delays over five years; recent recruitment of 450 examiners and expedited filings for residents aim to ease this.  
2. **Restrictive Patent Law**: India’s Section 3(d) and pre/post-grant opposition provisions, exemplified in Novartis AG v. Union of India⟦2⟧ (2013), protect public interest but reduce patent grants compared to China’s permissive regime.  
3. **Low R&D Spending**: India’s GERD at 0.65% GDP is far below China’s 2.68%⟦3⟧, with government-led R&D dominating and limited private sector commercialization, constraining patentable innovation.  
4. **Complex Filing Process**: High costs and procedural hurdles deter startups and MSMEs, especially outside metros, limiting patent conversion despite a 50% rise in filings.

**Innovation Ranking vs Patent Grants**

2. **Emerging Domestic Innovation**: Increasing patent applications from Indian residents show growth, but systemic delays hinder grant rates.  
3. **Policy Differences**: China’s MIC 2025 and massive R&D funding accelerate patent grants, contrasting with India’s cautious, public-interest-focused patent regime.

**Implications**

1. **Innovation Incentives**: Patent delays reduce R&D investment and commercialization, affecting startups reliant on patent protection.  
2. **Global Competitiveness**: Low patent grants limit India’s technological sovereignty in sectors like semiconductors and 6G, impacting initiatives like the Bharat 6G Alliance.

**Conclusion**

India’s patent grant disparity, despite rising innovation, stems from legal, infrastructural, and investment challenges, affecting its innovation ecosystem and global standing.

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