If the heart of India’s economy beats in its small businesses, intellectual property is its secret bloodstream. Today, India’s 6.3 crore MSMEs are not only driving innovation but are turning to intellectual property (IP) as their competitive edge in crowded markets. Yet, as recently as 2021, fewer than 20% of Indian MSMEs actively protected their IP- a number that’s surging, thanks to digital reforms policies and targeted support by the Government of India.
The IP Boom: India’s MSME Story
In just five years, patent filings by startups and MSMEs jumped a staggering 310%- from 1,492 in 2018-19 to 6,120 in 2023-24, according to the Indian Ministry of Commerce & Industry (April 2025). Trademark and design filings also hit record highs, with government data showing a 44% increase overall in IP filings across all categories- from 4.77 lakh in 2020–21 to 6.89 lakh in 2024–25.
These numbers aren’t dry statistics- they are proof that Indian MSMEs are wising up to the immense strategic value of IP. Initiatives like the 80% fee reduction in patents and 50% discount in trademark filings for MSMEs (as of July 2025) have made protection not just accessible, but also affordable.
Beyond Legal Shields: IP as a Business Accelerator
For too long, many MSMEs thought IP protection was meant for only large corporations with deep pockets. But the scenario is rapidly changing. Intellectual Property is now the engine behind:
- Brand Recognition and Trust: Trademark registrations empower small businesses to build loyal customer bases, defend against lookalikes and stand tall on crowded digital platforms.
- Faster Innovation and Revenue Streams: MSMEs are using patents, copyright and design registrations to not just block imitators, but license technology, collaborate with larger firms, and unlock new earning opportunities and investments.
- Market Expansion: With Geographical Indication (GI) registrations, local products are gaining global recognition- from Assam Tea to Kullu Shawls-turning homegrown pride into international demand.
Take for example MSMEs leveraging recent government schemes: The Ministry of MSMEs IP Facilitation and Commercialization (SCIP, 2024-25) now reimburses up to 70% of IP costs for registered units, making global IP registration for Indian brands a reality.
Delivering Confidence: IP in the Eyes of Investors and Customers
IP is now a credibility marker for MSMEs seeking investment. According to IBEF (India Brand Equity Foundation), a Trust established by the Department of Commerce, Ministry of Commerce and Industry, Government of India, startups with solid IP portfolios are more than twice as likely to attract funding, as investors seek proof of innovation and staying power. Consumers, meanwhile, gravitate to brands with registered marks, assured of authenticity and consistent quality.
Overcoming the Hurdles: Raising Awareness and Building Capacity
Despite this progress, just 9% of MSMEs in 2025 report a thorough understanding of new data and IP laws, showing a pressing need for ongoing education and support. Regular workshops, digital solution platforms (like the revamped ipronline.com and TROM) and regional MSME IP Facilitation Centres are bridging this knowledge gap.
The Road Ahead: Making IP Your Growth Multiplier
The surge is unmistakable: Indian MSMEs are rewriting the rules, using IP as a lever for survival and sustainable growth. Whether you are running an artisanal food brand (food or drink brand made in a traditional or non-mechanized way), manufacturing components, or developing SaaS, IP is no longer optional- it’s a game-changer.
As July 2025 marks a record year for India’s IP ecosystem, now is the time for every small business to ask: Is my innovation protected? Am I ready for the competition? Am I heading along the Indian globalization highway?
Let us make IP the backbone of India’s MSME revolution- a brand, one innovation, one success story at a time.
References:
- Ministry of Commerce & Industry, Government of India, Press Release (July 21, 2025) https://www.pib.gov.in/PressReleasePage.aspx?PRID=2146928
- Indian Brand Equity Foundation (IBEF), Patent Filing Report (April 2025) https://ibef.org/news/startups-msmes-filed-310-more-patents-in-past-five-years-official
- VisionIAS, Current Affairs (July 22, 2025) https://visionias.in/current-affairs/news-today/2025-07-23/economics-(indian-economy)/intellectual-property-filings-in-india-surge-44-in-last-5-years
- Ministry of MSME, SCIP Scheme Guidelines (Dec 2023) https://dcmsme.gov.in/CLCS_TUS_Scheme/IPFC/Guideline%20SCIP%20MSME%20INNOVATIVE%20IPR%20SCheme%2019.12.2023.pdf