By Rameesh Kailasam and Jharna Kamdar
Innovation has often been an important aspect that distinguishes entities across the world. A business that keeps innovating survives and thrives. A country that inculcates innovation in its society doesn’t only keep the economy roaring but also empowers entrepreneurship and keeps its businesses growing. The developed block of countries and their businesses understood this advantage and continued their innovation journey by attracting the best global minds to their geographies.
India, in the past few years, has started this journey, and the trajectory of becoming a $10 trillion economy and a developed nation hinges significantly on its transformation to a scientifically advanced country and a global leader in innovation. Government initiatives aimed at fostering creativity in education and incentivising careers in science underscore India’s steadfast commitment towards nurturing its innovation ecosystem. India’s ancient history is full of innovators and researchers who were constantly contributing to research and innovation that has withstood the test of time.
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India’s remarkable rise in the Global Innovation Index (GII), soaring to the 40th position out of 132 countries in 2023, reflects its resolute dedication to promoting innovation. The GII, complemented by the India Innovation Index published by Niti Aayog and the Institute for Competitiveness, also empowers states to measure their innovation-driven progress against global benchmarks.
In a landmark move, Union finance minister Nirmala Sitharaman outlined a bold vision for India’s technological future as she presented the interim Budget 2024. Central to her announcement was the allocation of a substantial Rs 1 trillion corpus to bolster technology research, signalling a transformative leap towards fostering innovation and self-reliance. While the specifics are awaited, the announcement heralds a new era for India’s tech landscape, highlighting the pivotal role of innovation as the cornerstone of national development.
This monumental corpus aims to catalyse private sector engagement in research and innovation across emerging sectors. Through long-term financing mechanisms and low or no interest rates, the government seeks to incentivise private enterprises to amplify their technological pursuits, particularly in burgeoning domains.
India’s innovation journey is marked by remarkable progress intertwined with persistent challenges. Despite emerging as a global hub for research and development across diverse sectors such as aerospace, biotechnology, and computation, India’s public spending on research has remained relatively low at around 0.8% of GDP. This is in stark contrast with countries like China and the US, where investment in research and development far exceeds India’s. Strengthening infrastructure and enhancing the quality of education are imperative for fostering a sustainable innovation ecosystem. Moreover, bridging the gap between cutting-edge research and its commercialisation remains a significant challenge that demands attention. Innovative ideas must seamlessly translate into tangible products and services to drive real impact.
To unlock India’s innovation potential and address these challenges, concerted efforts are required to invigorate scientific endeavors and cultivate an environment conducive to innovation. Recent government initiatives such as the establishment of innovation centers and the promotion of entrepreneurship through programs like Startup India and Make in India underscore a renewed commitment to fostering a culture of innovation and entrepreneurship.
India is now home to a significant number of innovation centres and a burgeoning entrepreneurial landscape. The country has emerged as a beacon of innovation in Asia, attracting foreign investment and spearheading groundbreaking research initiatives.
India’s innovation agenda prioritises a steadfast commitment to leverage science and technology for economic growth and societal welfare. The last 10 years under Prime Minister Narendra Modi’s leadership have witnessed the prioritisation of science and technology as fundamental pillars of India’s development strategy with a target to increase research and development spending to over 2% of GDP.
At the heart of India’s innovation narrative lies its flourishing startup ecosystem, propelled by the resilience and ingenuity of its entrepreneurs. The surge of technology startups, harnessing innovative solutions to address diverse market needs, underscores India’s prowess in digital innovation. With the rapid expansion of India’s digital consumer market fueled by the accessibility of affordable tech products, the nation witnesses the emergence of unicorns and a palpable surge in innovation capacity.
Various government endeavors like the Atal Innovation Mission (2016) exemplifies India’s dedication to nurturing a vibrant innovation sector. This initiative aims to foster innovation hubs, tackle grand challenges, and catalyse startup ventures in technology-driven domains. Additionally, the Atal Tinkering Labs initiative, nurturing innovative startups at schools and incubation centers, plays a pivotal role in instilling a culture of innovation from a young age.
The government’s call for startups and private sector firms to invest in burgeoning fields like AI, renewable energy, electric cars, defense, and semiconductor manufacturing underscores India’s determination to embrace the transformative potential of cutting-edge technologies. The advent of new technologies and data-driven solutions holds immense promise for India, particularly in democratising access to high-quality services and economic opportunities. Sitharaman’s assertion that these innovations can uplift even the most marginalised segments of society underscores the government’s commitment to inclusive growth and equitable development.
The government’s innovation stimulus holds immense promise for startups, offering a pathway towards sustainable growth, competitiveness, and global relevance. As India embarks on a journey towards becoming a powerhouse of innovation and entrepreneurship, startups stand to benefit from the unprecedented opportunities from such government’s initiatives, paving the way for a future defined by creativity, ingenuity, and technological excellence.
Authors Rameesh Kailasam and Jharna Kamdar, respectively, CEO and associate, public policy & research, Indiatech.org (TSIA)
