A framework to quantify India’s knowledge economy contribution has been proposed by the Ministry of Statistics and Programme Implementation (MoSPI), covering key sectors like AI, R&D, software, innovation, and digital assets.
The move comes amid a growing emphasis on intangible economic contributions, which are becoming increasingly significant for a country like India with a large and growing population of tech-savvy workers and entrepreneurs. The framework aims to capture the value generated by these sectors, which will help policymakers and business leaders make informed decisions.
The proposed framework is based on a base paper released by MoSPI, which outlines the key indicators and metrics to be used in measuring the knowledge economy. These include metrics such as the number of patents filed, the value of research and development (R&D) expenditure, the number of startups and their funding, and the value of digital assets created.
For example, the framework will consider the number of artificial intelligence (AI) models and algorithms developed in India, as well as the value of software products exported by the country. Similarly, the R&D expenditure will be measured in terms of the percentage of GDP spent on research and development activities.
The knowledge economy framework is part of a larger effort by the Indian government to track and measure the performance of the country’s economy. It is also seen as a step towards promoting innovation and entrepreneurship in India, which are critical for driving economic growth and job creation.
**What this means**: The proposed framework will provide a much-needed benchmark for measuring the contribution of knowledge and knowledge products to India’s economy. This will help policymakers identify areas where India excels and where it needs to improve, enabling targeted interventions to promote innovation and entrepreneurship.
