Manish Tewari | Tech delayed is tech denied

India must invest in R&D

India’s research and development (R&D) sector continues to grapple with deep-rooted challenges, reflecting broader weaknesses in the country’s innovation ecosystem. Ranked 39th in the Global Innovation Index 2024, India’s R&D spending has declined from 0.83 per cent of GDP in 2009-10 to a mere 0.64 per cent today. Private sector investment, once considered a potential driver of innovation, has steadily decreased, further exacerbating the crisis. India contributes just 2.9 per cent to global R&D expenditure, starkly lagging behind the United States (24.8 per cent) and China (22.8 per cent). This chronic underinvestment weakens technological self-sufficiency and increases reliance on foreign imports. Without bold reforms and stronger private sector participation, India’s aspirations of becoming a global technology powerhouse will remain elusive.

Struggle to Catch Up in Quantum Computing: Quantum computing represents the cutting edge of technological innovation, offering unprecedented processing power and the potential to disrupt encryption and cyber security. While leading global players have made massive investments in this field, India’s progress has been sluggish. Since the late 2010s, the United States, China, and the European Union have dominated quantum research, collectively accounting for the majority of the overall investment exceeding $40 billion. China alone has committed $15.3 billion as of 2022, after declaring quantum technology a national priority in 2016. The United States, through the National Quantum Initiative Act (2018), has allocated $2.7 billion in unclassified funding, with significant private sector contributions.

Recognising the urgency, India launched the National Quantum Mission in 2023, earmarking Rs 6,000 crore (approximately $720 million) for 2023-2031. The mission aims to develop intermediate-scale quantum computers with 50-1,000 qubits over eight years, alongside advancements in quantum communication, sensing, and materials. However, inconsistent budget allocations raise concerns. The initial Rs 427 crore for BE 2024-25 was later slashed to just Rs 86 crore (RE 2024-25) before being increased again to Rs 600 crore for BE 2025-26. Experts argue that the government’s goal of developing 50-1,000 qubit quantum computers is already outdated. Instead, they stress the urgent need to focus on quantum security to safeguard India’s critical digital and communication infrastructure.

India also lags in quantum computing patents and research output. A McKinsey report reveals that between 2000 and 2022, Chinese firms accounted for 52.8 per cent of global quantum computing patents filed, followed by Japan (14.1 per cent) and the European Union. India does not rank among the top 10, highlighting the pressing need for stronger innovation policies and a more research-driven approach to quantum technology.

Slow Embrace of Robotics and Automation: India’s sluggish adoption of robotics in manufacturing is starkly evident when compared to China. According to the World Robotics Report 2024, China installed 2,76,288 industrial robots in 2023, while India managed just 8,510. This gap not only hampers productivity but also reflects broader weaknesses in research, development, and technological integration. As automation and robotics reshape global industries, India’s reluctance to invest aggressively in these technologies risks placing its manufacturing sector at a competitive disadvantage.

Concerns over job displacement further complicate automation adoption. A Pew Research Center survey reveals that 73 per cent of India’s lower-income population fears job losses due to automation, underscoring anxieties about economic inequality. While similar concerns exist in other developing nations, India’s challenge is heightened by inadequate government support and limited industry preparedness. However, these fears may be overstated. The World Economic Forum’s Future of Jobs Report predicts that while automation could displace 85 million jobs by 2025, it is expected to create 97 million new roles, reshaping the balance between human labour, machines and algorithms. Instead of resisting automation, India should focus on equipping its workforce with the necessary skills to capitalise on emerging opportunities.

Globally, collaborative robots (cobots) are transforming manufacturing and logistics. Unlike traditional robots, cobots work alongside humans to enhance efficiency, particularly in e-commerce and supply chain management. The cobot market, currently valued at USD 1.9 billion in 2024, is projected to surge to USD 11.8 billion by 2030. Despite this rapid growth, India’s participation remains minimal. As Industry 4.0 redefines workforce dynamics, India must prioritise investments in robotics education and workforce up-skilling to remain competitive in the global market.

Dependence on Foreign Defence Technology: Despite a decade of ‘Make in India’ initiatives aimed at boosting domestic defence production, India remains heavily reliant on foreign technology for critical military systems. From fighter jets to missile technology, the country continues to import key defence equipment from Russia, Israel, France, and the United States. This dependence is largely due to an underdeveloped domestic defence R&D ecosystem, which has struggled to produce cutting-edge military technology that matches global standards.

Limited high-end manufacturing capability has led to prolonged procurement cycles, delays in modernisation, and increased vulnerability to geopolitical uncertainties. Even when India develops defence equipment domestically, much of it still relies on imported components. The Tejas fighter jet, often cited as a success in indigenous manufacturing, depends on foreign-sourced engines and avionics. Without significant advancements in domestic research, development, and innovation, India risks continued reliance on global suppliers, ultimately compromising its strategic autonomy.

A Barrier to Technological Progress: Research and Development (R&D) is the foundation of technological advancement, economic growth, and national security. Yet, India continues to lag behind global leaders in both R&D investment and output. Structural challenges such as inadequate funding, bureaucratic delays, weak industry-academia collaboration, and an overdependence on imported technology have hampered the country’s innovation potential.

Unlike other major economies where the private sector plays a central role in R&D, India’s research landscape is dominated by public institutions, with minimal industry participation. This has resulted in a heavy reliance on foreign technology in critical sectors like defence, healthcare, and industrial manufacturing, making the nation vulnerable to global disruptions. Further, complex administrative procedures and funding delays discourage innovation, while the lack of strong industry-academia partnerships stifles knowledge transfer. As a result, India continues to lose top research talent to countries offering better infrastructure, funding, and career opportunities.

To overcome these systemic challenges, India must take a multi-pronged approach. Raising R&D investment to at least three per cent of GDP, incentivising private sector participation through tax benefits and subsidies, and streamlining grant allocation processes are essential steps. Strengthening public-private partnerships and launching a national research problem-solving portal could also enhance innovation.

Retaining top talent will require competitive salaries, better research facilities, and greater international exposure. Universities should establish dedicated R&D cells and encourage interdisciplinary collaboration to drive technological breakthroughs. As a serving chief aptly put it, “Technology delayed is technology denied.” If India seeks to lead in emerging technologies, it must act decisively to build a well-funded, innovation-driven, and self-sufficient R&D ecosystem.