Counting Ideas Not Just Output Govt Unveils Blueprint To Track India’s Knowledge Economy

From IT exports to AI startups and digital platforms, a growing share of India’s value creation is now intangible and poorly captured in standard statistics. Recognising this gap, MoSPI is building a new framework to map the country’s knowledge economy. The move could eventually feed into a “knowledge satellite account” or even a Gross Domestic Knowledge Product style indicator that sits alongside GDP.

What Mospi Has Proposed

In its base paper, MoSPI outlines a conceptual framework to measure the economic contribution of knowledge and knowledge products, reflecting rapid technological change, complex skill demands and organisational innovation.

The scope covers research and development, patents and other IP, software and digital platforms, AI and data assets, scientific publications, innovation output, creative and cultural industries and India’s traditional knowledge such as Ayurveda and classical arts.

Panels, Workshops And A Base Paper

To shape the framework, the ministry set up a Technical Advisory Group including experts from NITI Aayog, RBI, industry and academia, then held a brainstorming workshop in September 2025 to build a taxonomy of knowledge products and indicators.

Inputs from these exercises have been consolidated into a four chapter base paper covering conceptual issues, existing global methodologies, India specific dimensions of traditional knowledge and a primer on valuing knowledge contributions, which is now open for public comments.

From R&D Capital Stock To Data Gaps

One centrepiece proposal is an “effective R&D capital stock” measure, which would convert annual research expenditure into an accumulated knowledge capital estimate using techniques similar to how fixed capital formation is tracked in national accounts.

MoSPI also flags major data gaps on innovation, AI adoption, digital assets and how knowledge diffuses through supply chains, noting that new surveys and administrative datasets may be needed before a full fledged framework can be implemented.

Consultation Window And Policy Payoff

The ministry has constituted a Committee on Knowledge Systems chaired by former Economic Advisory Council member secretary Ratan P Watal to turn the base paper into an actionable policy document.

Comments and suggestions on the framework are being accepted from ministries, industry bodies, researchers and the general public until 15 June 2026, after which MoSPI aims to finalise a methodology that could guide investment, innovation and education policy for a knowledge centric growth path.

Policy Insight Points

1. MoSPI has released a base paper proposing a framework to measure the contribution of knowledge and knowledge products to India’s economy
2. The framework spans R&D, IP, software, AI, digital platforms, creative industries and traditional knowledge systems, not just tangible output
3. A Technical Advisory Group and a 2025 brainstorming workshop helped build a taxonomy of knowledge products and identify indicators and data sources
4. A new Committee on Knowledge Systems led by Ratan P Watal will draft an actionable policy paper, with stakeholder feedback on the base paper open till 15 June 2026

Sources: Economic Times, ANI News SocialNews