With the pvt sector indifferent to R&D, India risks missing the deep-tech bus, or getting locked out
In the 2000s, China recognised that technological dependence was a strategic liability because it relied on US chips, Western operating systems and telecom infra. This triggered a strategy rooted in constructive paranoia, and the launch of mission-driven policies:This aimed to make China an 'innovation-oriented nation'.It targeted dominance in 10 hi-tech sectors.This programme was launched to reverse brain drain, and attract global researchers. It has received massive state support through guidance funds, industrial subsidies and tech-focused SOEs.China also doubled down on patenting, domestic standards and end-to-end industrial ecosystems, from semiconductors to green energy. R&D investment surged past 2.5% of GDP, with a rapidly rising share from the private sector. Today, China leads the world in AI patents, EV production, solar capacity and quantum publications.Meanwhile, India faces similar vulnerabilities China faced 25 years ago: imported chips, weak indigenous IP, low- tech exports and a fragmented research base. And the response has been uneven.GoI has launched Anusandhan National Research Foundation (ANRF), a ₹1 lakh cr R&D fund, expanded PLI schemes, and invested in semiconductors, space tech, clean energy and quantum. For the first time, the government is adopting a full-spectrum approach to funding research and innovation across all technology readiness levels (TRLs).While ANRF will focus on early-stage discovery (TRLs 1-3) and improve ease of doing science with DST, a soon-to-be-finalised ₹1 lakh cr R&D fund should drive private investment in mid-to-late-stage innovation (TRLs 4-9) through long-term, near-zero-interest loans. This fund shifts focus from grants to outcome-linked support for developing commercially viable tech. While the need for greater funding in basic research is acknowledged, GoI is laying the essential groundwork to build a self-sustaining R&D ecosystem.Yet, the private sector remains risk-averse, contributing barely a third of national R&D. India's R&D-to-GDP ratio remains stuck below 0.7%, with little traction in patenting or deep-tech commercialisation. The innovation pipeline is still thin.Ex-Intel CEO Andrew Grove made the line, 'Let's be paranoid' - with its philosophy of the importance of proactive preparedness for unexpected changes and strategic inflection points - famous. And, yet, even Intel wasn't paranoid enough. It missed the AI inflection point, and today Nvidia has overtaken it in valuation, strategic relevance and tech leadership.A similar inversion is unfolding between China and the US, driven by who innovates faster and scales deeper. Unfortunately, while GoI is paranoid, India's private sector isn't.In 2024, Foundation for Advancing Science & Technology (FAST) published a comparative study, 'State of Industry R&D in India', of 59 Indian and 60 global firms across six key sectors: pharma, software, defence, chemicals, automobiles, and energy. The study, conducted between FY16 and FY23, reveals a persistent input-output gap. Global firms, on average, reported 2.9x R&D intensity (spend as % of revenue), 3.7x share of PhD-qualified employees, and 2.9x R&D spending as share of profits than Indian firms.On output indicators, the disparity is starker. Global firms generated 13.1x patents and 1.3x scientific publications per billion dollars of revenue compared to their Indian counterparts.The European Commission recently released the EU Industrial R&D Investment Scoreboard 2024. It presents data on the top global 2,000 companies investing in R&D. They invested ₹1,257.7 bn in R&D in 2023. Indian firms accounted for ₹5.5 bn, or about 0.4%, of global industrial R&D investment, with only 15 companies featuring among the world's top 2,000 R&D spenders.This places India behind not only advanced economies like the US (₹531.8 bn, 681 firms) and China (₹215.8 bn, 524 firms), but also innovation-intensive small economies such as South Korea (₹42.5 bn, 40 firms), Taiwan (₹24.7 bn, 55 firms), and Ireland (₹10.4 bn, 24 firms).Sustained long-term economic growth is driven by investments in knowledge and innovation. India's failure to internalise this principle within its industrial ecosystem suggests presence of constraints: low absorptive capacity, weak industry-academia linkages, and limited interest from the private sector in high-risk R&D.Persistent underrepresentation of Indian firms in global innovation rankings reflects a missing industrial policy focus on Schumpeterian creative destruction, without which India risks being confined to low-value segments of GVCs.In Liu Cixin's 2008 science fiction novel, The Three-Body Problem, the world gets paralysed by the sudden collapse of scientific progress. Stagnation is the real nightmare. It's not fiction any more. For India, the risk isn't that we fail. It's that we're too comfortable even to try. Innovation can't be outsourced.If there's a gap between what scientists are doing and what businesses need, then companies must invest in R&D, collaborate with academia, and shape research. If the private sector stays disengaged, we'll keep watching others lead. We just aren't paranoid enough.
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News18
an hour ago
- News18
Trump's Mistake Is India's Opportunity To Make The Most Of China, Russia Ties
PM Modi's high-level engagements with Russian and Chinese Presidents — Putin in New Delhi, Xi in Beijing - make room for an array of opportunities in a moment of crisis. High-level meetings, intense negotiations, a high-stakes chess game of diplomacy and deal-making in full-swing. I am not talking about India's deal with the US. But with Russia and China. That's right. India has an opportunity in Trump's tariff crisis. And it's taking that opportunity with both hands. PM Modi's high-level engagements with Russian and Chinese Presidents — Putin in New Delhi, Xi in Beijing and possibly a symbolic RIC meet on the sidelines of the SCO summit – make room for an array of opportunities in a moment of crisis. Even as India navigates Trump's tariff war, it has legitimate areas to address with respect to Moscow and Beijing. India has a large trade deficit with Russia, driven by oil sales swelling abruptly over the course of the Ukraine war, which New Delhi wants addressed. Meanwhile, the reset with China has entered fertile ground in the current geopolitical circumstances, which raises the chance of good faith outcomes and mutual understandings. The United States under President Donald Trump has triggered geopolitical shockwaves far beyond the realm of trade and tariffs. One of the worst hit has surprisingly turned out to be India. While Trump's classic style of deal-making could not breach India's redlines, a number of geopolitical threats emerged on the table, essentially upending India's entire calculus around its relationship with the US and its place in the Indo-Pacific. Trump made a series of provocative missteps, weaponising Pakistan against India, seeking credit where it was not due on Operation Sindoor and trying to mediate on Kashmir. This couldn't fly with India which made its displeasure known, leading to a conflict of minds right at the very top. The stage was set for a grand fallout. But the trigger came from the trade deal. Trump had expected big numbers, large unrealistic commitments in terms of investments, defence and energy purchases, credit for the India-Pakistan ceasefire, perhaps a nobel prize nomination, maybe even more. This was when Trump introduced the Russia card seemingly out of nowhere. Failing to get Russia to agree on a ceasefire in Ukraine for six months, Trump changed tack and decided to go after Russia's oil customers. The American President steered clear of China, the number one buyer of Russian oil and went for the 2nd best thing — India which he may have found easier to bully. He threw Russian oil into the mix of trade negotiations to build the ultimate leverage, dramatically close to his tariff deadline. Now India faces 50% tariffs from the US, the highest for any country, a stark uncertainty about any future trade deal, and a relationship so sour it could make a lemon blush. Western experts have become increasingly wary of India's deepening alignment with BRICS partners especially with Russia and China as a result of Trump's missteps. India will welcome Putin for an annual bilateral summit later this month, after which PM Modi will head to China for the SCO summit where he will be meeting Xi Jinping. Even the Russia-India-China trilateral may be in season – something both Russia and China crave. Moreover, China and India have been pursuing a reset, with India showing more hesitation than China on the economic front. But it's time to turn Trump's tariff crisis into an opportunity with Russia and China. Starting with Russia, India has developed a large trade deficit in the last three years of the war in Ukraine. India's purchase of discounted Russian oil drove this deficit. A lot of these payments were done through the rupee-ruble payment system, which means Russia holds billions of rupees right now which India wants it to pump back into the Indian economy as investments and for imports from India. When External affairs Minister s Jaishankar visited Russia in November in 2024, he raised with Putin this ballooning trade deficit calling for its 'urgent redressal". Bilateral trade has grown one-sidedly. In 2021, India-Russia trade was just about $1 Billion. But it rose sharply after the Ukraine war. Oil prices skyrocketed, and India started buying discounted Russian oil, taking trade to almost $71 billion, with Indian imports at $65.7 billion and exports to Russia at $4.9 billion. In just a few years, trade surged by 6000% taking the trade deficit as high as $61 billion. Resolving this matter is crucial to establishing a long-term and sustainable trading partnership. India has several asks from Russia to settle this imbalance and they will be at the top of the agenda as the leaders meet later this month: Firstly, Russia must reduce non-tariff barriers and increase imports of pharmaceutical, machinery, chemicals and agricultural products. It can invest in Indian infrastructure, manufacturing and services. There are talks on a bilateral investment treaty to push this. Russia must expedite the Free trade agreement or FTA talks with the Eurasian Economic Union whose members are Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. Russia now holds billions of rupees in Indian banks, especially in Special Rupee Vostro Accounts (SRVAs). India pushed for Russia to invest these rupees back into the Indian economy. Several mechanisms have been put in place: RBI has allowed Russian entities to invest rupee balances in sovereign and infra-linked securities. Regulations now permit Russian investment in Indian stocks and bonds. India and Russia are exploring mechanisms akin to the India–UAE model (invoicing and payments in rupee/dirham based on central bank arrangements) and discussions are underway on implementing trilateral settlement mechanisms involving the UAE. Moreover, Russia's oil discounts have narrowed from their peak of above $12 per barrel to just $2-3/barrel. As demand shrinks from Indian refiners given the narrowing discounts and later the tariff threat from America, Russia has sought to deepen the discounts to $5/barrel. All in all, India's trade gap with Russia is hitting the roof—fueled by oil and the rupee–ruble tango. Russia's parking its rupees in Indian assets, but closing the gap needs more Indian goods going out and Russian cash coming in. Oil discounts that once gushed have trickled, but to secure its place in the Indian oil import basket, Russia might want to sweeten the deal again. When it comes to China, another crucial opportunity awaits. Foreign Minister Wang Yi's visit to India on August 18 to meet NSA Ajit Doval set the stage for PM Modi's first trip to China in seven years, aimed at 'instilling positivity in the relationship". While the reset in India-China relations started in 2024, it has gained momentum under current geopolitical conditions, opening the door for constructive outcomes. India wants Beijing to step up transfers of rare earths, strategic machinery and specialty fertiliser, all of which it has weaponised in trade negotiations. Meanwhile, New Delhi may consider easing restrictions on Chinese investments in select sectors—helping address its nearly $100 billion trade deficit. Post-Galwan, India had largely shut the door on Chinese investments for national security reasons, allowing approvals only on a case-by-case basis. However, with global investments drying up amid Trump's tariff war, India has pragmatic reasons to cautiously reopen. This is a key ask from the Chinese side as it seeks to be a development partner. Both sides have used their leverage to force favourable outcomes, and now they are close to finding a settlement. The flurry of movement of late speaks for itself—China resumed the Kailash Mansarovar Yatra, India resumed tourist visas for Chinese nationals after five years and both nations are to restart direct flights. Another major confidence building measure is the resumption of border trade. China has also eased curbs on urea shipments, a massive batch of diesel oil has been shipped to China from India's Nayara refiner which faces EU sanctions, and expectations are high for further relaxation on specialty fertilizer and rare earth exports. This rapprochement could become a win-win if managed strategically, with major announcements possible during a likely Modi-Xi meeting. Such progress may even boost military disengagement in the Himalayas. top videos View all Does that mean China can be trusted? Absolutely not. Beijing remains a military and strategic adversary, with an unresolved boundary dispute and an enduring alliance with Pakistan. Yet, peace thrives on nuance. Just as a bloody border clash once destabilised economic engagement, a deliberate effort to stabilise economic ties could, over time, ease tensions on the strategic and military front. Through more than four years of a military standoff, China has received India's message of resilience in the face of an adversary. China has recently tried to cultivate goodwill with India, recognising that peace serves its interests as much as India's, and has behaved with relative restraint at the border. This dialogue has the potential to lay out a roadmap for peaceful bilateral ties in the years ahead. The key is to preserve the positive while keeping a watchful eye on the negative, and if this reset brings a few years of peace and growth, that would be an optimal outcome. Simply put, India was already on its way to reset ties with China, and to address the trade imbalance with Russia. With Trump's antics, both these missions become even more urgent. There are no real friends in geopolitics, only interests. Now, as Trump's trade bombs drop and global norms unravel, New Delhi's playbook is simple—adapt, hustle, and never bet on 'forever friends'. About the Author Shubhangi Sharma Shubhangi Sharma is News Editor - Special Projects at News18. She covers foreign affairs and geopolitics, and also keeps a close watch on the national pulse of India. Click here to add News18 as your preferred news source on Google. tags : donald trump finepoint India-China ties India-Russia ties pm narendra modi view comments Location : New Delhi, India, India First Published: August 19, 2025, 10:35 IST News opinion Finepoint | Trump's Mistake Is India's Opportunity To Make The Most Of China, Russia Ties Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy. Loading comments...
The Hindu
an hour ago
- The Hindu
The View From India newsletter: Our colleagues are dropping dead in Gaza
(This article is part of the View From India newsletter curated by The Hindu's foreign affairs experts. To get the newsletter in your inbox every Monday, subscribe here.) An Israeli strike on August 10, 2025, targeting Al Jazeera staff in a tent near Al-Shifa Hospital in Gaza City killed six journalists, four of whom were Al Jazeera staff, including Anas al-Sharif and Mohammed Qreiqeh, and cameramen Ibrahim Zaher and Mohammed Noufal. The two other journalists killed were Moamen Aliwa and Mohammad al-Khaldi. Israel accused Al Jazeera reporter Anas al-Sharif of 'terrorist affiliation.' — unsurprising in a world where state and deep state actors target messengers who put out information that causes them discomfort or brings greater scrutiny. The line between the state's proportionate and strategic response to terror, and the state's own brand of terror, unleashed on ordinary citizens of another country or one's own, must never blur. To start with, there aren't enough of us in the world telling the Gaza story. Western legacy media, especially in the U.S., stand exposed for their deep, shameful prejudices and worse, silences. Meanwhile, some of our colleagues in Gaza are dropping dead, while bringing to light this brazen carnage. A whole generation is being 'wiped out' in Gaza, as the United Nations Relief and Works Agency for Palestine Refugees observed recently. Over 60,000 people have been killed by Israeli forces until now in Gaza since October 2023. Among them are more than 200 journalists. Our colleague Sambavi Parthasarathy in The Hindu's data team combs through the statistics and shows us how Israel, while continuing to pound one of Palestine's non-contiguous regions — Gaza — is slowly asserting 'sovereignty' over the other — West Bank. The UN has said that displacement of Palestinians in West Bank has hit levels not seen since the start of Israel's occupation. With no respite in sight yet, it is distressing to see so many, including journalists, embracing the official narrative without the slightest scepticism. The Palestinian issue did not begin in October 2023. In this valuable explainer, which traces the history of Israel-Palestine relations from the end of the Second World War, Stanly Johny tells us why several peace agreements lie in tatters, and why there is no Palestinian state till date. In another timely analysis, Stanly Johny writes: When the world pushes for a two-state solution, Israeli Prime Minister Benjamin Netanyahu continues to push for a no-state solution — no sovereignty for the Palestinians, no state for the Palestinians and no rights for the Palestinians. Why is that so, when Israel's closest allies are beginning to recognise Palestinian sovereignty and subjectivity? Blinded by their shared ethno-nationalist ideology and drunk with hard power, Mr. Nentanyahu and his far-right allies Bezalel Smotrich and Itamar Ben Gvir are programmatically incapable of grasping the shifts unfolding around them, he writes. More theatrics, no deal The much-watched summit between U.S. President Donald Trump and his Russian counterpart Vladimir Putin August 15, 2025 in Anchorage, Alaska, did not yield a breakthrough on the Ukraine war. 'We had an extremely productive meeting and many points were agreed to, there are just a very few that are left,' Mr. Trump said. 'We didn't get there, but we have a very good chance of getting there.' Mr. Putin, on the other hand, said: 'We see the desire of the U.S. administration and President Trump personally to facilitate the resolution of the Ukrainian conflict, his desire to delve into the essence and understand its origins.' Read together, it'll seem like the leaders are on the brink of announcing a ceasefire. But it was a 'no ceasefire, no deal' meeting, as many global headlines put it. Statements and optics mean little in the absence of real outcomes. Theatrics don't automatically spawn solutions. Serious political engagement that reconciles short-term and long-term interests, while prioritising the safety of scores of ordinary people, does. Also, you can't steadfastly back one deadly war and claim to be able to stop another swiftly. 'The challenge before Mr. Trump is to sustain the talks aimed at narrowing the differences further to reach a workable compromise. While it makes perfect sense to end the war on practical terms, Mr. Trump should not impose an agreement on Kyiv. Peace would prevail in Eastern Europe only if Ukraine's security concerns are addressed and it is provided with credible assurances that Russia would not invade it again,' The Hindu noted in its editorial. And now, global media is tracking the next big meeting between Mr. Trump and Ukraine's President Volodymyr Zelenskyy. Follow The Hindu's live updates here. Mr. Zelenskyy has also made a pitch for India to play a role in resolving the Russia-Ukraine conflict, writes Suhasini Haidar. Top 5 stories this week: 1. India hit out at the Pakistani leadership for 'reckless warmongering and hateful comments' as well as The Hague-based Court of Arbitration (CoA) for questioning India's decision to suspend the Indus Waters Treaty (IWT) after the Pahalgam terror attack – Suhasini Haidar reports 2. Chinese Foreign Minister Wang Yi to visit India amidst uncertainties in India-U.S. trade ties, Kallol Bhattacherjee reports. 3. Jeremy Corbyn | The British Left's second act – Srinivasan Ramani on how the former Labour leader is trying to mobilise left-wing voters under his new party, as Labour under Keir Starmer struggles to maintain public support 4. Alaska | Chilling past, warm present: Sruthi Darbhamulla writes on the former Russian region sold to the U.S. in 1867, which still bears traces of Russian cultural influence, that hosted Trump and Putin for a historic summit 5. Honour India's legacy, defend its democracy: Independence Day this year is a stark reminder of the state India is in; it is a reminder of how Indians should resist any moves to undermine the country's constitutional principles, writes Kerala Chief Minister Pinarayi Vijayan.
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First Post
2 hours ago
- First Post
History Today: How India saw birth of its first rupee coin in 1757
On August 19, 1757, the East India Company minted its first rupee coin in Kolkata. The Company established the Calcutta Mint after signing a treaty with Nawab Siraj-ud-Daula. Initially, the mint produced gold and silver coins under the Nawab's authority. Over time, production increased Today, coins are minted at four government mints. Image: News18/Representational On August 19, 1757, the East India Company issued its first rupee coin in Kolkata. The Calcutta Mint was set up by the Company after a treaty with the Nawab of Bengal. The rupee coins, known as the 'sicca', were used as legal currency across Bengal. Also on this day in 1991, Mikhail Gorbachev, who served as general secretary of the Communist Party of the Soviet Union from 1985 to 1991 and as president of the Soviet Union from 1990 to 1991, was briefly removed from power in a coup led by communist hard-liners. STORY CONTINUES BELOW THIS AD As part of Firstpost Explainers' History Today series, here's a look at what happened on August 19: First Indian rupee coin minted The first rupee coin of the East India Company was minted in Kolkata on this day in 1757. The Company set up the Calcutta Mint after signing a treaty with Nawab Siraj-ud-Daula. Known as the 'sicca', these coins were accepted as legal tender in Bengal. At first, the mint produced gold and silver coins under the Nawab's authority. Over time, production increased. In the 1780s the mint was expanded with new facilities to put the 'sicca' rupee into wider circulation. A single coinage system for India was introduced only in 1835. Before that, the presidencies of Madras, Bombay and Bengal, each under Company rule, issued their own coins. Today, coins are minted at four government mints: Mumbai, Alipore (Kolkata), Saifabad (Hyderabad), Cherlapally (Hyderabad) and Noida (Uttar Pradesh). Attempted coup against Gorbachev On this day in 1991, a coup against Soviet leader Mikhail Gorbachev was launched by hard-line communist members of the government and military. However, the coup was poorly organised. Its leaders reportedly spent much of their time arguing among themselves and, as some accounts suggest, drinking heavily, instead of focusing on gaining public backing. Even so, they placed Gorbachev under house arrest and asked him to step down as leader of the Soviet Union. Mikhail Gorbachev was briefly removed from power in a coup led by communist hard-liners. Reuters/File Photo Many Western analysts expected the US, under President George Bush, to step in, but were surprised at Washington's cautious response. At the time, Bush's team was debating whether Gorbachev's influence was waning and if American support should instead shift to Russian President Boris Yeltsin. STORY CONTINUES BELOW THIS AD Yeltsin's standing grew as he openly condemned the coup and rallied public resistance through strikes and street protests. With most of the Soviet military unwilling to back them, the coup leaders abandoned their attempt, which collapsed on August 21. This Day, That Year 1934: Nearly 90 per cent of German voters backed a referendum that gave Adolf Hitler the title 'Führer und Reichskanzler' ('leader and chancellor'). 1960: Russia launched Sputnik 5, the first spacecraft to send animals into space and bring them back alive. Its passengers included two dogs, a grey rabbit, 40 mice, two rats and 15 flasks of fruit flies. 1980: All 301 people on board Saudia Flight 163 died when the plane caught fire and made an emergency return to Riyadh airport. 2004: Google Inc. raised 1.66 billion dollars in its initial public offering. 2010: The last American combat brigade left Iraq, seven years and five months after the US-led invasion began the Iraq War.
