Innovation

India's gross expenditure on research and development has hovered near 0.65 percent of GDP for years, far below the two to three percent typical of innovation-driven economies, and the government accounts for the overwhelming majority of that spending. Private industry, which funds most research in comparable economies, remains a marginal contributor, and Indian universities and companies collaborate on research at rates well below international norms. Fixing the funding number alone would not fix the deeper structural disconnection.

India now hosts one of the world's largest startup ecosystems by company count and funding volume, with over a hundred unicorns and a maturing venture capital market. Much of that capital, however, has flowed toward consumer internet and services businesses that compete on execution and distribution rather than proprietary technology, a pattern that produces valuation growth without necessarily producing invention. Recognising that distinction matters for how India measures its own innovation progress.