India has emerged as the fastest-growing major economy in intangible investments, with spending on assets such as software, research and development (R&D), intellectual property and organisational capabilities reaching $78.2 billion (around Rs 6.7 lakh crore) in 2023, according to the World Intangible Investment Report 2026.
Highlighting the report’s findings, Union Commerce and Industry Minister Piyush Goyal said India is steadily strengthening its position as a global innovation hub, driven by investments in knowledge-based assets that are shaping the economy of the future.
Sharing the report on X, Goyal said India recorded the fastest growth in intangible investments among the world’s 15 largest economies, with investments rising 7.9% in 2023. He said the country’s intangible investments have now reached $78.2 billion, outpacing growth in tangible investments and exceeding the levels seen in several European economies.
“India is powering the next era of innovation-led growth,” Goyal said, adding that the report shows the country’s increasing investments in software, R&D, intellectual property, innovation and organisational capabilities.
The minister attributed the growth to sustained policy reforms, digital transformation and continued support for startups under the leadership of Prime Minister Narendra Modi.
Unlike traditional investments in factories, machinery or buildings, intangible investments refer to spending on non-physical assets that generate long-term economic value. These include software and databases, research and development (R&D), intellectual property (IP), brands and trademarks, product design, organisational know-how and business processes and data and artificial intelligence capabilities.
For example, while the value of a conventional automobile largely depends on its physical components, much of the value of an electric vehicle comes from its battery technology, software and intellectual property. Similarly, AI models derive most of their value from research, algorithms, data and software rather than physical infrastructure.
According to the report published jointly by the World Intellectual Property Organization (WIPO) and Luiss Business School, software and databases accounted for nearly 45% of India’s total intangible investment in 2023, the highest share among all economies covered in the study.
The report said the composition of India’s investments shows the country’s strong information technology and software services industry, which continues to be a major driver of economic growth.
The report noted that India’s increasing investment in knowledge-based assets demonstrates a broader structural shift towards a technology-driven and innovation-led economy. According to Goyal, India’s young entrepreneurs, innovators and creators are playing a central role in this transformation.
“Driven by the energy and aspirations of our young innovators, entrepreneurs and creators, India remains the world’s fastest-growing major economy, a global bright spot, and is steadily building a knowledge-driven future powered by ideas, innovation and enterprise,” he said.
The report also highlighted a major global economic transition. Across the 29 economies covered in the study—representing 57% of global GDP—investment in intangible assets crossed $10 trillion in 2025, the highest level ever recorded.
Between 2008 and 2025, intangible investments grew at a compound annual growth rate (CAGR) of 3.5%, compared with just 0.98% for tangible investments such as factories, machinery and equipment. During the last decade (2015-2025), intangible investments expanded 4.4% annually, roughly 2.5 times faster than tangible investments, which grew at 1.8%.
The report said this reflects a lasting structural change in the global economy, where value creation is increasingly driven by knowledge, technology and innovation rather than physical assets.
WIPO noted that intangible assets have become critical for businesses and economies because they drive innovation and technological advancement, improve productivity and competitiveness, enhance product quality and customer loyalty, generate higher-value employment and strengthen long-term economic growth.
However, the report also pointed out that many intangible assets remain under-measured in official statistics, making it difficult for policymakers and businesses to accurately assess the true drivers of economic performance.
It stressed that better measurement of investments in software, intellectual property, data and innovation is becoming increasingly important for designing effective public policy and improving business decision-making.
Source: The Financial Express
