Bharat markets maintain growth and attract Big Tech among global business presence. The nation’s entrepreneurs and startups can now easily obtain funding for their expansion. Yet, the desi innovation capacity and research performance has been below par, with only several high-profile institutes offering top-level R&D output.

India’s Innovation Capacity Lags behind Its Market Capitalization

 Even after a difficult year for global markets and the nation’s businesses, it is hard to find faults with India’s macroeconomic climate. Industrial output is coming back to normal, digital services are performing well and even small businesses benefit from fintech and other new-age online and mobile solutions. 

Looking closely, however, makes some analysts affirm that the Union needs a more sustained effort in producing its own indigenous innovations and technological advancements. Rather than taking part in global value chains, desi businesses need to generate some bottom-up tech advancements and innovations in order to become more self-reliant and create extra added value for the nation’s economy. 

At an online summit held on the National Technology Day, panelists noted that developing proprietary technology and novel digital solutions must become the focus of businesses which currently do not invest in research and innovation. 

Generally, the public sector is lagging behind private businesses in technology adoption while still dedicating resources towards R&D. Businesses, on the other hand, lack the resources and capacity to invest in applied research, something which holds back their growth and the nation’s long-term economic performance. 

A prime example of this contradiction is the government lottery in India which is not yet available online. Despite its popularity among online players, even states where public desi lotteries are legal do not offer online versions. On the contrary, numerous Indian offshore gaming platforms reach their customers easily with mobile apps, considering that the nation’s active online users passed 750 million in late 2020. 

Admittedly, the Digital India initiative was a step in the right direction. Yet, there’s still much to be done to bridge the gaps between technology adoption, public funding and applied business research that is useful to economic growth. 

Supply Follows Tastes but Innovation Generates Demand

 India’s gaming industry is among the more advanced segments out there. A topical research provided by ENV Media on regional development, income levels and social habits confirms some of the above suspicions of an innovation-hungry consumer base.

 The 6-8 major urban areas across Bharat provide up to two-thirds of all online casino players, betting on websites like 10Cric.com. The nation’s admittedly unlimited market potential is driven by its prosperous young population and its social gaming habits. Considering that around 75% of desi population is below 45, these customers are largely expected to drive commercial trends in the near future.

 While India’s innovative and tech-hungry youth reaches out to foreign products and offshore platforms, these products and solutions could easily be supplied domestically – with some more technological advancements and own applied business research.

Investor Interest in Private Desi Tech Remains High; Research Is Largely Public.

 The case for more tech advancements is obscured by an investor interest in desi tech startups which is higher than ever. While industrial and venture capital follows huge or growing markets (and India is a case for both), experts urge for a better public-private cooperation in bringing research closer to applied social and economic benefits. 

The desi IT ecosystem may act as a catalyst for sustainable economic growth, yet some “easy imports” in the sector are skimming added value and innovation potential from the nation’s businesses. The responsibility of public authorities and institutes is mostly related to the creation of favourable conditions that could encourage applied research and innovations development. Some preferential funding would not hurt as well. 

While private business ecosystems have their immediate company goals, most cutting-edge technological research is carried out in India’s leading research institutions. The former lack the short-term incentive and actual resources, the latter might have to review their mission goals (and commercial prospects) to better serve the nation’s economic growth. 

Striving for a synergy between the two realities would go a long way towards ensuring a brighter future for India’s entrepreneurs and society.