Intellectual property seems to be essential to the progress of a country. In many developed nations, the strict enforcement of the IPR function has a considerable positive impact on economic growth. IP rights promote innovation, which leads to progression in the economy. Nowadays, every company exists as a result of innovation. The value of IPR legislation has been acknowledged in the current period. In today’s world, it’s not simply innovation but also brand recognition that counts. There is a lot of charm attached to the name. Intellectual property rights have a substantial influence on a country’s growth and prosperity. In the context of economic growth IP rights may have both a negative and positive impact. This paper deals with the impact of IPR on Indian economy. Further it highlights purposes, mechanisms, and economic benefits of IPR.