The Impact of Intellectual Property Rights on the Economic Development of India in the Context of Artificial Intelligence: Legal Status and Challenges

Intellectual Property Rights (IPR) play an important role in shaping economic growth and technological innovation. The rise of Artificial Intelligence (AI) has created new opportunities as well as challenges for the IPR framework in India. This paper examines the relationship between IPR and economic development in the context of AI technologies, arguing that strong protection mechanisms are essential for India’s ambition to become a global hub for AI innovation. Effective IPR regimes can attract foreign investment, encourage domestic research, and protect start-ups from the misuse of proprietary technologies. At the same time, AI complicates traditional IPR concepts by raising questions about authorship, ownership, and the patentability of machine-generated inventions. The study reviews India’s policy framework, including the National IPR Policy 2016, and compares it with international approaches to identify strengths and gaps. Evidence from Indian start-ups and technology firms suggests that while AI-related patent filings are increasing, procedural delays, weak enforcement, and the absence of clear guidelines on AI-related intellectual property still create barriers for innovators. The paper argues for a balanced policy approach that supports innovation while ensuring fair access to emerging technologies. It concludes that with a stronger and more adaptive legal framework, AI can significantly contribute to India’s economic growth, technological advancement, and job creation.