Boost R&D and Innovation
Finance Minister Sitharaman Urges Indian Businesses to Boost R&D and Innovation
Anonymous
Key Points
1
Sitharaman described India as being at a “structural inflection point,” with rising incomes and upward mobility expected to reshape consumption patterns.
2
She said India has more than 2.3 lakh DPIIT-recognised startups, including more than 120 that have surpassed a $1 billion valuation, while urging startups and family-owned businesses to professionalise and build institutions that can endure.
3
Sitharaman warned that a strategy focused only on premium products for urban consumers would undermine long-term growth, saying, “If corporate India pursues premiumisation for the urban tier alone, growth will lose its structural durability.”
4
She clarified that resilience should not amount to economic isolationism; instead, India should build enough domestic capacity to absorb global shocks without interrupting national development.
5
Sitharaman noted that global growth had slowed below 3%, while India’s GDP growth was approaching 8%, with the latest quarter performing better than most forecasts; she also cited a recent sovereign-rating upgrade by Japan Credit Rating Agency.
Finance Minister Nirmala Sitharaman is calling on Indian companies to shift focus from manufacturing volume to breakthrough innovation. She wants businesses to move beyond
From 'Made' to 'Imagined' in India
Sitharaman urged a fundamental pivot: stop chasing scale alone, start building intellectual property. She wants Indian firms designing products, writing software, and filing patents that compete globally. The goal is "Imagined in India"—homegrown innovation exported worldwide. India's R&D spending sits at just 0.83% of GDP, far below the OECD average of 2.7%. Private companies, which handle roughly 36% of national R&D investment, need to spend more. Sitharaman called for expanded in-house research programs and deeper partnerships with universities to close this gap.
Structural Inflection Point Reshaping Indian Consumption
Sitharaman framed India as standing at a pivotal moment. Rising incomes and upward mobility are poised to reshape how hundreds of millions spend money. But corporate India faces a trap: chasing only premium goods for wealthy city dwellers. She warned bluntly: "If corporate India pursues premiumisation for the urban tier alone, growth will lose its structural durability." To build durable growth, businesses must serve rural and semi-urban markets where most new consumers live. Ignoring them means leaving growth on the table.
Startups and Family Firms Need Professional Institutions
India has nurtured 2.3 lakh DPIIT-recognised startups, including over 120 unicorns worth $1 billion or more. But Sitharaman wants these young companies—and family-owned MSMEs—to build lasting institutions, not just ride waves. Growth requires strong governance, clear decision-making structures, and the capacity to scale beyond founders. Family businesses especially must professionalize. Without it, even successful startups risk collapse when leaders change or markets shift. She emphasized that durability and institutional strength matter as much as innovation itself.
Building Resilience Without Economic Isolation
Sitharaman made clear: resilience doesn't mean shutting out the world. Instead, India should build enough domestic manufacturing and supply chains to weather global shocks without stalling development. The logic is pragmatic. Global growth has slowed below 3%, yet India's GDP is approaching 8%, with recent quarters outperforming forecasts. A Japan Credit Rating Agency upgrade reinforced investor confidence. India can compete globally while protecting its own economic foundations—but only if companies invest in capabilities and innovation now.
Sentiment
Mostly PositiveNEGATIVENEUTRALPOSITIVE
Publishers
15
Articles
28
Reach
43
Topics
A
AnonymousAuthor
