Authored by: CA Punit Khandelwal, CA Sunit Khandelwal and Prof. Divya Aggarwal Professor, MDI Gurgaon (ex-professor: EMLV, France and IIM Ranchi, India)
Assisted by: CA Gargi Gupta, Madhav Arora and Sushant Bajaj
Foreword
In an era where innovation defines competitiveness, intellectual property (IP) has become one of the most strategic assets driving enterprise value. Royalty rates — the monetary reflection of IP’s worth — continue to shape how businesses license, collaborate, and expand across borders.
We are pleased to present the 3rd edition of Incwert’s India Royalty Rates Study, an analytical deep dive into how royalty rates have evolved across sectors over the past decade. This year’s edition builds on our ongoing effort to decode the nuances behind licensing arrangements in India and place them in context with patterns seen in mature markets such as the United States, where disclosure and licensing norms are more evolved.
The study spans over 2,000 entities and 10,000 transactions, offering a unique view of the patterns, anomalies, and underlying drivers that influence royalty negotiations. As India’s innovation ecosystem matures and regulatory frameworks evolve, understanding these dynamics becomes even more essential for valuers, policymakers, and corporate decision-makers alike.
A recurring theme is the systematic difference between royalty rates in India and developed markets. While India’s rates tend to be lower, this disparity often reflects structural realities such as differing cost priorities, stages of technological maturity, and the accessibility of R&D capital.
At the same time, the growing role of IP-intensive sectors — from digital technology and life sciences to clean energy innovations — signals a gradual but clear shift toward value creation through intangibles. This underscores the need for refined valuation approaches that blend analytical rigour with contextual insight.
We extend our gratitude to our contributors, researchers, and reviewers for their support in bringing this edition to life. We hope this study not only serves as a reference point for valuation practitioners but also as a catalyst for dialogue around how intellectual property continues to redefine value in a changing economy.
Team Incwert