AI Push Transforms India’s Tech Hubs into Global Innovation Engines, Boosting Patent and IP Creation

Global companies are increasingly betting on India’s technology hubs to become major centers for innovation, as artificial intelligence reshapes how work is done and accelerates the creation of intellectual property.

Executives from Publicis Groupe’s Epsilon, Kimberly-Clark, and Daimler Truck told Reuters that AI-driven automation is helping global capability centres (GCCs) in India move beyond routine back-office tasks toward higher-value work such as product development, research, and proprietary technology creation.

“The number of IPs, the patents and the trade secrets created by GCCs in India is already increasing,” said Radhakrishnan Kodakkal, head of Daimler Truck Innovation Center India, adding that AI is expected to significantly accelerate that trend.

India’s GCC ecosystem has evolved rapidly over the past decade, shifting from cost-focused outsourcing hubs to strategic innovation centres for multinational firms. Despite global economic uncertainty, companies continue to expand these operations, supported by India’s large skilled workforce and relatively lower operating costs.

Industry estimates underscore the scale of this transformation. India’s GCCs generated around $98.4 billion in revenue last fiscal year, surpassing earlier growth forecasts by several years, according to a Nasscom-Zinnov report.

At the same time, patent activity in India is rising. A Nasscom study showed filings increased 11.3% to over 90,000 in fiscal 2024, with multinational corporations accounting for nearly half of all applications.

However, executives noted that the full contribution of Indian GCCs is often understated, since many patents developed in India are officially filed through parent companies in the United States or Europe.

Despite strong momentum, challenges remain in India’s domestic intellectual property system. Some companies say lengthy approval timelines and procedural delays discourage local filings. For example, Kimberly-Clark executives said their India-developed patents are typically filed in the U.S. due to faster processing and fewer administrative hurdles.

Experts attribute delays to a shortage of patent examiners, backlog pressures, and high legal costs, although recent digital reforms and virtual hearings have improved efficiency.

Even so, executives remain optimistic about India’s role in global innovation.

“I see more and more IP work happening here,” said Pratik Nath, managing director of Epsilon India, highlighting expectations that AI will further strengthen India’s position as a global hub for high-value technology development.

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