Although it is very encouraging to see how Indian companies are finding value in down-market segments, it certainly doesn't represent innovation. The following TED talk is interesting more for its insights into how to yield asymmetric value from marginal improvements within a certain sector. For example, a $2k car sounds like a wonderful thing until further reflection indicates that it is only marginally better than a motorcycle (essentially adding more seats)--problems with safety, maintenance, etc. still remain.
The achievement here is not innovation, it is a demonstration of efficient resource utilization within regional constraints (low safety hurdles, cheap and educated workforce, etc.). The real innovation is the materials science that yielded out alloys cheap enough to create a low-cost chassis and the materials science that yielded composite fibers and adhesives for use--that is innovation. Creating something fundamentally new.
It is a false pride to confuse the two. I imagine that the speaker understands this but feels compelled to be a cheerleader. Far better would be for these burgeoning economies to give a "real" gift to humanity (rather than a shallow catch-phrase)--investment and collaboration on fundamental science--for that is where innovation actually happens.
