National Survey Finds Karnataka Most Innovative State In Manufacturing

India's Department of Science and Technology (DST) and the United Nations Industrial Development Organisation jointly conducted a survey on the level of innovation in manufacturing in the country.

The study revealed that Karnataka excels in the manufacturing sector, being the most innovative and having the highest number of innovative manufacturing companies.

The National Manufacturing Innovation Survey (NMIS) 2021-22 reveals that the least innovation in manufacturing is in the northeastern states (excluding Assam) and Bihar.

The report surveyed over 8,000 firms in 28 states and six Union territories (UTs), analysing the manufacturing and related services sector and micro, small, and medium enterprises (MSMEs).

It suggests the need to enhance innovation in manufacturing, as firms that implemented innovative strategies saw an increase in sales, according to the report.

Karnataka was ranked as the state with the most innovation, followed by Telangana, Tamil Nadu, Maharashtra, and Haryana.

Uttarakhand ranked highest among the hill states, while Dadra and Nagar Haveli and Daman and Diu topped among the UTs.

Jharkhand, Odisha, and Andhra Pradesh are among the low-performing states.

However, the survey has brought to light an interesting observation — the states with the highest innovation rankings have major cities at their core, such as Bengaluru for Karnataka, Hyderabad for Telangana, and Mumbai for Maharashtra.

Even though Andhra Pradesh shares a border with Telangana, it has a low innovation ranking due to Hyderabad now being within Telangana.

Dr Akhilesh Gupta, Secretary to the Science and Engineering Research Board under DST, noted these findings.

According to Dr Gupta, the state rankings and survey help the centre, state governments, and industry to identify the manufacturing gaps that need remediation to stay competitive globally.

According to the report, out of 8,074 firms surveyed, only 25.01 per cent were categorised as innovative for implementing new or better products or processes. The report found that 73.76 per cent of firms did not introduce any innovations during the period.

Telangana, Karnataka, and Tamil Nadu accounted for the highest proportion of innovative manufacturing firms surveyed, at 46.18 per cent, 39.10 per cent, and 31.90 per cent respectively.

Meanwhile, Odisha, Bihar, and Jharkhand had the smallest share of innovative firms, at only 12.78 per cent, 13.47 per cent, and 13.71 per cent respectively, according to the report.