19 October 2024 : Indian Express Editorial Analysis

1. STARTING UP, FANNING OUT      

(Source: Indian Express; Section: The Editorial Page; Page: 10)

Topic: GS2 – Governance

Context:

The article highlights India’s remarkable transformation into a global hub for technological and entrepreneurial innovation.

India’s Technological and Entrepreneurial Transformation

• India’s rise as a center of technological and entrepreneurial innovation is a remarkable success story. Once ranked in the lower quartiles among innovative nations, the country has undergone a dramatic transformation in its innovation landscape over the past decade.
• Today, India stands as a global powerhouse in creativity and technology. This shift is particularly visible in the nation’s flourishing start-up ecosystem.
• With India now boasting the third-largest start-up environment globally, the number of tech start-ups is expected to grow from 68,000 in 2023 to 180,000 by 2030.
• As of early 2024, India is home to 111 unicorn start-ups with a combined valuation exceeding $350 billion.
• Moreover, the start-up revolution is no longer confined to metropolitan hubs but is spreading to Tier-2 and Tier-3 cities, signaling the democratization of entrepreneurship across the country.

Key Factors Driving India’s Innovation Growth

Several critical initiatives have contributed to India’s remarkable improvement in the Global Innovation Index.

• First, India’s rise is underpinned by a robust innovation ecosystem that includes a large knowledge base, a dynamic start-up landscape, and strong collaborations between public and private research entities.
  • The Department of Science and Technology’s NIDHI (National Initiative for Developing and Harnessing Innovations) program has played a pivotal role, establishing a network of technology incubators and entrepreneur parks that bring together public institutions and private start-ups to commercialize innovations.
• Second, various government-led initiatives, such as those from the Departments of Science and Technology and Biotechnology, alongside the Atal Innovation Mission, have enriched the national innovation environment.
• Third, policy-driven efforts led by NITI Aayog have optimized innovation in strategic sectors like electric vehicles, biotechnology, nanotechnology, space, and alternative energy.
• Fourth, India has made significant progress in indicators such as industry diversification, patent origination, and the export of cultural and creative services.
• Finally, India stands out among lower-middle-income countries for its high innovation quality.

Strategic Implementation and Collaboration

Specific examples showcase how these initiatives have worked in practice.

• For instance, NITI Aayog has partnered with the Ministry of Railways to fast-track the redevelopment of railway stations through public-private partnerships.
• In the pharmaceutical industry, Indian firms have adopted a new business model where they engage in contract manufacturing and clinical trials for multinational companies, integrating themselves into the global pharmaceutical innovation process.
• The Atal Innovation Mission (AIM) is particularly notable for fostering innovation at the grassroots level. It has established over 4,880 operational Atal Tinkering Labs in more than 650 districts, providing access to innovative tools to over two million students.

• Moreover, AIM has selected 102 universities, institutions, and private players to create Atal Incubation Centres, with over 50 currently operational and nurturing more than 900 start-ups.
• These efforts extend further through partnerships with five Union ministries, resulting in challenges like the Atal New India Challenges, which have led to significant government support for emerging innovations.

India’s Global Innovation Standing and Future Prospects

• India’s innovation journey has garnered international recognition, especially among lower-middle-income economies.
• From being ranked 81st globally in 2015, India has risen to 40th in the Global Innovation Index, becoming the top-ranked country among 37 lower-middle-income economies.
• India also leads in areas like ICT services exports, venture capital received, and the number of science and engineering graduates. Additionally, India ranks 13th globally in corporate R&D investment.
• Beyond statistics, a culture of innovation is now ingrained in Indian society, reaching even school-level education. This is not limited to Tier-1 cities but spans the entire country, covering major sectors of the economy.
• The result is a surge of young innovators and entrepreneurs, which promises to elevate India’s innovation ecosystem to unprecedented heights in the coming years.

The Role of Leadership in India’s Innovation Success

• India’s success in the innovation space owes much to the vision and persistence of Prime Minister Narendra Modi. His leadership has been instrumental in driving the transformation of India’s innovation landscape.
• Through his initiatives, India has emerged as a global innovation leader, and the ripple effect of these efforts will continue to propel the country to new heights in technology, entrepreneurship, and economic growth.  

What are the Major Technology Related Challenges in India?

Digital Divide:  While India has a large and growing internet user base, there’s a significant gap between urban and rural areas. Oxfam’s India Inequality Report 2022 shed light on digital divide’s impact on inequality, revealing that about 70% of India lacks proper Information and Communication Technology (ICT) access. Despite efforts like BharatNet, rural connectivity remains poor, with only 2.7% of the poorest households having computers and 8.9% internet access. Lack of Relevant Skilling:  The Indian IT sector is known for IT services, but there’s a growing demand for specialised skills in areas like AI, cybersecurity, and data science. India’s education system currently lacks specialised skills leading to shortage of skilled professionals equipped with relevant technological expertise. Lack of Adequate Focus on R&D:  Compared to developed nations, India invests relatively little in research and development (0.64% of GDP). This hinders innovation and domestic production of cutting-edge technologies. Cybersecurity Threats:  As India integrates more technology, cybersecurity threats are on the rise. With advancing technology, cyber frauds, online financial frauds, and deep fakes pose significant challenges, raising ethical and security concerns impacting decision-making processes. In the year 2022, the Indian Computer Emergency Response Team (CERT-In) handled over 1.3 million security incidents reported across India. Events like  AIIMS Delhi Ransomware Attack in 2023 highlights the sensitivity of the issue. Lack of Comprehensive Regulation on AI: India currently does not have a single, comprehensive law for regulating AI. There are various initiatives and guidelines, but they are not legally binding. This creates uncertainty for businesses and raises concerns about potential risks.

Practice Question:  Discuss the key factors that have contributed to India’s emergence as a global hub for technological and entrepreneurial innovation. How have government initiatives and collaborations between public and private sectors fueled this transformation? (250 words/15 m)