- The NMIS 2021-2022 which aims to evaluate the innovation performance of manufacturing firms in India was released by Dr. Srivari Chandrasekhar, Secretary, DST, Ministry of Science and Technology (MoST).
Note: NMIS 2021-22, a follow-up of the first Indian Innovation Survey 2011, is a focused effort to evaluate the state of innovation in India’s manufacturing sector.
Assessment:
The survey was conducted for a period of financial years 2017-2020 in 28 states and 6 Union Territories (UTs), covering manufacturing and related service sector and MSMEs (Micro, Small & Medium Enterprises). It was a follow-up of the DST’s first National Innovation Survey held in 2011. The survey had two specific components: the Firm-Level Survey and the Sectorial Systems of Innovation (SSI) survey.
The Firm-level survey covered 58 sector, and captured data related to types of innovations and innovative measures taken by firms while SSI survey mapped the manufacturing innovation system and its enabling role in achieving innovations in firms in select five key manufacturing sectors important to the Indian economy viz. textiles; food & beverage; automotive; pharma; and ICT (Information and Communications Technology).
- A total of 8,087 firms participated in the firm-level survey, while 5,488 firms and non-firms participated in the SSI survey.
The responses obtained from the firm-level survey have been converted into an index, the India Manufacturing Innovation Index (IMII) for comparison across the 28 states and 6 UTs of India.
IMII:
i.The Indian manufacturing sector has an overall IMII score of 28.17.
ii.Karnataka, overall, is the most innovative State with index score of 33.41, followed by Dadra and Nagar Haveli & Daman and Diu (DNH&DD) (32.88), Telangana (32.86), and Tamil Nadu-TN (32.54).
iii.Apart from Northeastern states except Assam (19.69), low-performing states include Bihar (21.32), Jharkhand (22.78), and Odisha (23.05).
iv.Telangana, Karnataka, and TN had the highest share of innovative firms at 46.18%, 39.10% and 31.90%, respectively, with Odisha, Bihar, and Jharkhand reporting the lowest share of such firms at 12.78%, 13.47% and 13.71%, respectively.
v.Uttarakhand (31.72) has the highest score among the hill states, while DNH&DD has the highest score among the UTs.
Key Points:
i.There is a need to increase innovation in manufacturing.
ii.The report states that only 25.01% of the 8,074 firms surveyed were considered innovative.
iii.The majority of the firms, 73.76%, did not introduce product or business process innovations in this period
iv.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.
Note: The NMIS 2021 aligns with the objectives of SDG9 (Sustainable Development Goal), namely supporting domestic technology development, research and innovation, increasing the access to financial services of small-scale industries and their integration into value chain markets, to foster innovations and promoting inclusive and sustainable industrialization by 2030.
Recent Related News:
i.On March 1, 2023, the Reserve Bank of India (RBI) launched the March 2023 round of its 2 surveys: Inflation Expectations Survey of Households (IESH), and Consumer Confidence Survey (CCS). Data gathered from these surveys, which are regularly done by RBI, will provide useful inputs for RBI’s monetary policy.
ii.According to the 3rd edition of PayNearby’s annual report titled “PayNearby Women Financial Index (PWFI)” over 10,000 women entrepreneurs have dispensed over Rs 900 crores of financial services in FY22. The report, released by PayNearby in association with the Reserve Bank Innovation Hub (RBIH), is a detailed analysis on ‘financial consumption by women at retail outlets’ in 2021-22.
About United Nations Industrial Development Organization (UNIDO):
Director General– Gerd Müller
Headquarters– Vienna, Austria
