The Core Report #420 Why Indian Firms must Invest More in R&D
In this weekend edition of The Core Report, prominent Indian businessman and Co-Chairperson of Forbes Marshall Naushad Forbes and Financial journalist Govindraj Ethiraj explore the reasons why Indian companies are lagging behind global firms in R&D spending. Forbes argues that India's investment in R&D is significantly lower than the world average, with Indian firms only investing 0.3% of their GDP in R&D compared to 1.5% globally. This low investment stems from a combination of factors, including a lack of awareness about the benefits of R&D, a perception that Indian firms are already investing enough, and an absence of a strong internal culture that prioritizes innovation. He emphasizes that while there is a readily available pool of R&D talent in India, it is often utilized by foreign companies, rather than Indian ones. Mr. Forbes also highlights that a lack of aggressive competition in the domestic market due to protective tariffs, coupled with a reluctance to engage with Asian markets, is hindering the growth of R&D in India. Forbes advocates for policies that promote competitiveness, such as a reduction in tariffs and participation in free trade agreements, to incentivize Indian firms to invest more in R&D.
Listeners! We await your feedback....
The Core and The Core Report is ad supported and FREE for all readers and listeners. Write in to shiva@thecore.in for sponsorships and brand studio requirements.
For more of our coverage check out thecore.in
Join and Interact anonymously on our whatsapp channel
Subscribe to our Newsletter
Follow us on:
Twitter | Instagram | Facebook | Linkedin | Youtube