This article focuses on the fundamental problems related wealth creation in India and the role of innovation in this context. It lays down 8 axioms that can create a framework to build a structure for innovation that is relevant to our nation. It is assumed that we cannot simply mimic the western models of innovation since the socio-economic context of our country is very different. The rules of capitalism won't change (especially in a globalized economy), but one has to customize the model to suite the ground realities of our country. For the advanced economies, innovation has proved to be the only way to improve productivity and hence generate wealth. For India, innovation for productivity improvement is a given, however, it also needs to focus on employment generation on a massive scale and wealth redistribution/circulation.