Budget 2023 pushes tech-driven economy, must accelerate innovation for rapid growth

India is on a mission in the very first year of Amrit Kaal. This mission is technology-driven. Technology will therefore be centre-stage during this phase of socioeconomic growth and development. We are the bright spot in a turbulent world.

However, India is currently 40th in the Global Innovation Index 2022. While we have leapfrogged by 41 counts in a span of seven years, we must aspire to be in the top 25 in the near term and in the top five by India @ 100. The Prime Minister has provided a huge impetus to innovation by adding Jai Anusandhan to the country’s evergreen slogan of Jai Jawan, Jai Kisan, Jai Vigyan.

On the other hand, the world is being disrupted on many fronts, including global value chains, the entire process of energy transition, health, etc. We are all on an equal footing. This is an opportune moment for instilling innovation into our DNA, and for taking the lead.

The government with Budget 2023 has offered a multidimensional, inclusive view on technology, innovation and research. I would like to specifically highlight five of these.

First, the clear and correct emphasis on the collective and cohesive working of four key stakeholders in the technology ecosystem—industry, academia, research labs and startups—which we refer to as the National Research Quad (NRQ). The announcement on making ICMR labs available for research to academic institutions as well as the private sector for R&D will accelerate innovation in the critical sphere of medicine for all. In addition, the proposal of setting up of 100 labs in engineering institutions for developing 5G services will create a new range of technologies and business models for quantum communication. Again, for all.

Second is the impetus given to R&D and high-end manufacturing in pharma, medical technology, green tech, circular economy, agritech, millet research. This is timely and critical for the future.

Third, there is a clear focus on creating enabling and inclusive policies for technology-led development. For example, setting up a National Data Governance Policy, simplifying fintech regulations, a deep focus on energy transition and net zero, incentives for startups and rural women, etc.

Fourth, the focus on emerging technology with the announcement of the launch of three centres of excellence. This, when reinforced with industry participation in conducting interdisciplinary research, developing cutting-edge applications and scalable solutions to problems, will lay the foundation for an effective emerging technology, research and innovation ecosystem in India.

And finally, the budget lays a strong emphasis on digital skilling covering new-age courses for Industry 4.0 like coding, AI, robotics, mechatronics, internet of things, 3D printing, drones and soft skills. Skilling lakhs of youth, on-the-job training, industry partnership and alignment of courses with the needs of industry, setting up of 30 Skill India International Centres will generate a future-ready workforce, thereby adding to the competitiveness of businesses and, ultimately, that of our nation as a whole.

Innovation is a team effort and often prospers through hit-and-miss. It requires continual collaboration. This is because almost every technology is a combination of other technologies. Likewise, almost every idea is a combination of other ideas. Therefore, it is critical that all stakeholders—the NRQ—are brought together with enablement by the government. This is exactly what the budget seeks to do. We, the stakeholders, must now do our bit. This is the right time to give a thrust to the virtuous cycle of innovation.

Vipin Sondhi is chairman, CII National Mission on Technology, Innovation and Research, and former MD and CEO, Ashok Leyland and JCB India