Perspective: Emerging and critical tech for India | 11 February, 2024

Summary

The special program on Sunet TV, hosted by Manish Kumar, delves into India's strategic approach towards emerging and critical technologies in the context of the 2024 budget. With the nation's ambition to become a $7 trillion economy by 2030, the discussion emphasizes the importance of advanced technology in various sectors, including quantum technologies, AI, semiconductors, clean energy, and biomanufacturing. The conversation features Dr. A. A. Karandikar, Secretary of the Department of Science and Technology, and Dr. Aay Kumar, a former defense secretary, who share insights on the government's comprehensive plan to spur R&D and the need for increased private sector involvement. They discuss the role of the National Research Foundation in incentivizing private sector R&D, the success of the iDEX model in supporting startups, and the challenges of integrating academia, industry, and government in R&D endeavors. The speakers also highlight the significance of the government's announcement of a 1,000 crore fund to transition India from a service economy to a product nation, and the importance of improving research standards in academia to bolster the country's technological capabilities.

Takeaways

• 🚀 **Ambition for a $7 Trillion Economy**: India aims to reach a $7 trillion economy by 2030, highlighting the importance of embracing smart and advanced technology.
• 📈 **National Priorities**: The Indian government has identified Quantum Technologies, AI, semiconductors, green hydrogen economy, and biomanufacturing as key sectors for R&D and national missions.
• 💡 **Innovation Ecosystem**: India has been focusing on its strengths in software, data analytics, and AI to drive innovation, moving away from a dependency on imported technology.
• 🛰️ **Space Technology**: There is significant interest and innovation in the space sector, with advancements in launch, satellite, payload, ground station, and analysis technologies.
• 💼 **Private Sector Involvement**: To scale up R&D, the private sector needs to increase its spending, which is currently lower compared to global players like the U.S. and Korea.
• 🤝 **Public-Private Partnership (PPP)**: The government is looking to innovate with PPP models similar to those used in infrastructure development to boost private sector participation in R&D.
• 🏆 **National Research Foundation (NRF)**: The NRF has been established to incentivize and enhance private sector funding for R&D, with the government co-funding projects alongside the industry.
• 📚 **Academic and Industry Synergy**: There is a need to create harmony between academia and industry to leverage the capabilities of both sectors in R&D and innovation.
• 🌟 **Ownership and Recognition**: India needs to develop a culture of respecting and owning its own products, as seen with the successful development of the COVID-19 vaccine.
• 💎 **Global Standards**: India has the potential to create global standards, as evidenced by essential patents in telecommunications, and should celebrate and encourage its innovation and R&D culture.
• 📉 **R&D Spending**: India's R&D spending as a percentage of GDP is lower than the global average, indicating a need to increase investment to become a global technology player.

Q & A

What is the ambition of India's economy by 2030?

India aims to reach a GDP of USD 7 trillion by 2030.

What is the importance of embracing advanced technology for India's development?

Advanced technology is imperative for India to build a greater economy and is addressed under the national mission as part of various policies.

What is the role of the Department of Science and Technology (DST) in India's R&D initiatives?

The DST is piloting a major national mission on Quantum Technologies, which is one of the critical and emerging sectors prioritized by the country.

What are some of the critical and emerging technology sectors that India is focusing on?

India is focusing on Quantum Technologies, artificial intelligence (AI), semiconductors, clean energy (particularly green hydrogen), and biomanufacturing and bioeconomy.

How is India addressing the development of defense and military technologies?

India has been dependent on imported technology but is now fostering an innovation ecosystem, with a focus on areas where the country has natural strengths, such as software, data analytics, and AI.

What is the significance of the National Research Foundation (NRF) in India's R&D landscape?

The NRF is set up to incentivize and enhance funding from the private sector for R&D support, with the government co-funding R&D projects along with the industry.

What is the current state of private sector R&D spending in India compared to the global average?

Globally, 2-3% of GDP is spent on R&D, with 70-80% of this coming from the private sector. In India, only about 30-40% of R&D spending comes from the private sector.

How does the Indian government plan to scale up R&D beyond the government realm?

The government is looking to create an environment where the private sector can increase its R&D spending, supplementing government efforts, and incentivizing entrepreneurs and startups.

What is the iDEX model, and how has it been successful in India?

The iDEX model is an initiative that provides support to startups working in deep tech areas and critical and emerging technologies. It has been successful in incentivizing private sector participation and innovation in defense technology.

What are the challenges faced by India in the area of semiconductor and chip-making?

India faces challenges such as dependence on imported semiconductors and chips, which is also a security concern. The country needs to develop its ecosystem for chip design and manufacturing to achieve self-sufficiency.

How does the Indian government plan to address the lack of high-standard research in academia?

The government recognizes the need to boost the research and R&D ecosystem in tier 2 and tier 3 universities and colleges. Initiatives like the NRF aim to fund these institutions and create a hub-and-spoke model to enhance their capacity.

Outlines

00:00

📈 India's Ambitious Tech Agenda for a $7 Trillion Economy

The video begins with a discussion on India's strategic push towards advanced technology as part of its goal to become a $7 trillion economy by 2030. The government's comprehensive plan includes the establishment of a national mission and policies to spur R&D in emerging tech sectors. The focus is on Quantum Technologies, AI, semiconductors, clean energy, and biomanufacturing, with a significant emphasis on defense technology innovation and the need for long-term funding for R&D.

05:03

🚀 Prioritizing Innovation in Defense and Space Technology

The conversation continues with a focus on defense and space technology as key areas of innovation. The importance of developing indigenous capabilities in defense technology is highlighted, along with the potential for space technology advancements. The speakers discuss the need to support areas where India is seeing a critical mass of innovation and the role of government in creating an environment conducive to R&D.

10:05

🤝 Public-Private Partnerships in R&D and the PPP Model

The paragraph discusses the potential of Public-Private Partnerships (PPP) in R&D, drawing parallels with the successful implementation of the PPP model in infrastructure development. The speakers emphasize the need to incentivize private sector participation in R&D and the importance of leveraging the capabilities of various stakeholders, including academia and industry, to foster a culture of innovation.

15:07

💼 The Role of the Private Sector in R&D and National Innovation

The discussion shifts towards the role of the private sector in R&D, with a focus on the need for increased private sector spending on R&D as a percentage of GDP. The establishment of the National Research Foundation (NRF) is mentioned as a step towards incentivizing private sector funding for R&D projects. The speakers also touch upon the importance of creating a culture that respects and values indigenous products and technologies.

20:09

🏭 Transforming India into a Product Nation through Semiconductors

The speakers delve into the importance of semiconductors and chip-making for India's technological advancement. They discuss India's strengths in chip design and the need for substantial investments in semiconductor fabs. The government's commitment to supporting this sector is highlighted, with a mention of the announcement of a significant funding commitment to transform India from a service economy to a product nation.

25:11

🎓 Strengthening Research and Academia for Technological Advancement

The final paragraph addresses the challenges in academia related to the quality and quantity of R&D personnel in India. The National Education Policy and the NRF's role in enhancing the R&D ecosystem, particularly in tier 2 and tier 3 institutions, are discussed. The concept of a hub-and-spoke model is proposed to improve the capacity of these institutions and make them competitive on a global scale.

Keywords

💡Quantum Technologies

Quantum Technologies refer to the application of quantum mechanics to technological development. In the video, it is mentioned as one of the critical and emerging sectors that India has prioritized, with the government launching a national mission on Quantum Technologies. This relates to the theme as it is part of India's strategic push towards advanced technology.

💡Artificial Intelligence (AI)

AI is the field of computer science that focuses on the development of intelligent machines capable of performing tasks that typically require human intelligence. In the script, AI is identified as a priority area for India's technological advancement, aligning with the country's ambition to embrace challenges in advanced technology.

💡Semiconductors

Semiconductors are materials that are crucial for modern electronics, including the manufacturing of computer chips and sensors. The script discusses India's focus on semiconductors as a critical technology, highlighting the need for domestic production to reduce reliance on imports and address security concerns.

💡Green Hydrogen Economy

The term refers to an economic model that utilizes hydrogen as a clean energy carrier, produced in an environmentally friendly way. In the video, it is mentioned as a sector where India has set priorities, aiming to promote clean energy development and adaptation, which is part of the country's broader strategy for sustainable growth.

💡Biomanufacturing

Biomanufacturing involves the use of biological processes or systems to produce goods and therapies. It is mentioned in the script as one of the critical and emerging sectors for India, indicating the country's intention to invest in this area as part of its technological advancement and economic growth.

💡Defense Technology

Defense Technology encompasses the technological advancements used for military purposes. The script emphasizes the importance of defense and military technologies in driving a nation's technological progress, with India looking to innovate in this area to reduce dependency on imported technology.

💡Innovation Ecosystem

An Innovation Ecosystem refers to an environment that supports and fosters innovation. The video discusses the growth of India's innovation ecosystem, particularly in software, data analytics, and AI, which is a significant part of the country's technological development strategy.

💡Research and Development (R&D)

R&D involves the systematic investigation and experimentation aimed at the development of new products, processes, or improvements in technology. The script highlights the need for increased R&D spending by both the government and private sectors in India to become a global technology player.

💡National Research Foundation (NRF)

The NRF is an initiative set up by the Indian government to incentivize and enhance funding from the private sector for R&D support. The script mentions the NRF as a key component of India's efforts to boost R&D capabilities and create an environment for private sector involvement in R&D.

💡iDEX (Innovations for Defence Excellence)

iDEX is an initiative by the Indian government to encourage innovation and technological development in the defense sector. The script discusses the success of the iDEX model in providing support to startups working in deep tech areas, which is crucial for India's ambition to become a product nation.

💡Academic Institutions

Academic Institutions are establishments dedicated to education and research. The video script points out the need to boost the research and R&D ecosystem within academic institutions, particularly in Tier 2 and Tier 3 universities, to enhance India's overall technological and research capabilities.

Highlights

India aims to reach a $7 trillion economy by 2030, with a focus on smart and advanced technology.

The government has announced a comprehensive plan to spur research and development in emerging and critical tech sectors.

A national mission on Quantum Technologies has been launched, with DST as the piloting agency.

Artificial Intelligence, semiconductors, clean energy, and biomanufacturing are identified as priority sectors for India's technological advancement.

India's defense and military technologies are seen as game changers for the country's technological progress.

The government is looking to increase private sector spending on R&D from the current 30-40% to levels seen in global players.

The National Research Foundation (NRF) has been established to incentivize and enhance private sector funding for R&D.

The iDEX model has been successful in providing support to startups working in deep tech and critical technologies.

India has a significant capacity in semiconductor design, with major design companies operating R&D houses in the country.

The government is focusing on creating an environment to increase private sector R&D spending and supplement government efforts.

A shift from a service economy to a product economy is seen as crucial for India's economic growth and development.

The budget announcement of 1,00,000 crore is considered a historic moment, aiming to transition India into a product nation.

The development of a culture that respects and owns up to Indian products and technologies is emphasized for national progress.

The National Education Policy and NRF aim to boost research and development ecosystems in tier 2 and tier 3 universities and colleges.

A hub and spoke model is proposed to enhance the capacity of tier 2 and tier 3 institutions by partnering with tier 1 institutions.

The lack of high-standard research in academia is recognized as a challenge, with plans to address it through policy and funding.

The importance of creating rules and procedures to enable the procurement of R&D products developed in India by the government is highlighted.

Transcripts

[Music]

namaskar welcome to sunet TV you are

watching our special program on emerging

and critical tech for India budget 2024

this is your host Manish kumara while

India is marching on building a greater

economy with an ambition to reach USD 7

trillion by 2030 the Quest for smart and

advanced technology is imparative it

must be addressed under the national

Mission the government has laid out a

comprehensive plan to Spur the research

and development in emerging and critical

tech for India in various policies and

in entering budget 2

2024 also government has announced a 1

lakh cus for long-term funding of

R&D including uh deep defense

technology since uh such technology are

not shared by many advanced economies

can India embrace the challenges and

even Le frog to talk on such important

issues we have two distinguished guest

here let me introduce aaran diar who is

Secretary Department of Science and

Technology government of India earlier

he also led the prestigious I kpur as a

director and let me introduce aay Kumar

who has served as defense secretary and

secretary defense production he has also

served at principal secretary it

secretary in the MIT department and now

a distinguished visiting faculty at it

kpur I welcome you on sunet TV sir let

me Begin by asking uh what are the

priorities for India in the realm of

critical and emerging technology I begin

with uh Dr away if you if you start

talking about the priorities because the

area is so was and and Technology game

is is so

huge so I think uh let me just tell you

that there are certain sectors uh where

we as a country have laid out certain

priorities so one of the areas in larger

context of critical and emerging

Technologies is uh Quantum Technologies

Quantum commu Computing and

Communications and uh in fact the

government of India has launched a major

national mission on Quantum uh recently

which DST is

piloting another is artificial

intelligence AI then

semiconductors clean energy and

particularly you know the hydrogen uh

green hydrogen uh

economy and uh lastly I think in

biomanufacturing and bioeconomy so these

are certain critical and emerging

sectors uh where where we as a country

uh have set out priorities there are

National missions and policies where we

are actively promoting uh the technology

development and adaptation uh in these

areas Dr Kumar has been involved I many

discussion in the past and U he has led

many uh initiatives especially in the

defense uh technology and the military

technology is a game changer so but then

again the range is vast so we need from

Advanced material to jet

engine to uh to address some of the even

additive technology for the production

timeline where do you prioritize among

all these you know I think uh if it

first of all I want to say I agree with

what uh Dr karandikar said you know

there are certain areas where we have

shown initial momentum and therefore we

should give trust to them

uh very important area is you know

defense and defense is important because

history has shown that development in

defense and Military technologies have

helped Nations to actually reach much

more advanced technology than in any

other field

right we in uh you know in India have in

the last 70 years largely been dependent

on imported technology

in the last four or five years we have

now seen a Innovation ecosystem which is

working and most of this ecosystem is in

areas where the country has natural

strengths software related uh data

analytics artificial

intelligence uh we find in Quantum we

have found now significant interest in

chip design so I think uh developing

capabilities in these new areas yet

another huge area in which we are

finding tremendous amount of traction in

space and uh today we are finding large

number of Innovations happening at all

uh you know verticals of space whether

it is on the launch side whether it is

on the satellite side whether it is on

the payload side whether it is on the

ground station side whether it is on the

analysis side so in each of the areas

there is tremendous amount of traction

so I would like to say I think the way

forward would be to give thrust to areas

where we are seeing a critical mass of

innovation developing and a governmental

push in areas to create critical mass in

those sectors where we are not finding

that much of traction I I agree with you

and fundamentally as Dr Kumar has

pointed out Military uh technology has

brought uh many many things which later

being used in the civilian spare for

example the global positioning system

and many other technology but

fundamentally these all depend on

research and development uh so far we

see the major portion in in fact the

entire portion of the research and

development is solely taken by one or

two agency which is government owned

perhaps drdo is one of the example and a

few dpsu how do you see we can scale up

uh uh beyond the realm of the government

how we can include the broader private

sector to do much much more and focus

and put thrust on R&D uh your take

on Dr since you have been also uh deeply

involved first in Academia and then in

the government policy making so your

take on this please so if you look at

you know the Global Science and

Technology players in the world then

typically they spend about uh you know 2

to 3% of their GDP on the R&D in India

uh we are spending only about 7% of the

GDP on R&D but more importantly when you

see that you know Global um ecosystem or

other countries where they are spending

uh you know uh 3 to uh 4% of their GDP

on R&D 70% of this spending is from the

private sectors and in some countries

such as Korea it is even higher it is up

to the extent of 80%

but in India uh the spending by the

private sector in R&D has been limited

to only 30 to

40% and uh unless we increase the uh

spend on R&D uh as a large percentage of

the

GDP uh you know we cannot reach to that

level um where we want to really become

a global player now uh and and as I said

that this spending cannot come from the

government alone it has to be come it

has to come from the private sectors uh

by enhancing their R&D

capabilities now one efforts that

recently the government has done is that

that we have set up the national

Research Foundation anusandhan National

Research

Foundation and uh one and and as you

know that the name is called Foundation

right so uh therefore you know one of

the objectives has been uh to uh

incentivize and enhance uh the funding

from the private sector for the R&D

support and this need not come into the

foundations directly in fact the

government can co-fund uh the R&D

projects uh along uh with the industry

so I think uh uh we really need to

create an environment where the private

sectors can increase its R&D spending uh

which will really uh you know supplement

what the government efforts are there uh

in funding R&D programs uh in uh

incentivizing uh entrepreneurs and

startups uh uh that I think uh uh will

further get uh a boost uh if I EO your

opinion and and come back to again on

the military asair as as a uh precursor

to better technology advanced technology

uh Dr Kumar knows much deeply as he has

held uh responsibility and again I come

back to the drdo look at the budget of

drdo for example is 23,000 CR drdo is is

put to innovate from bullet to tank to

fighter jets basically and then there's

a entire ecosystem uh uh and a private

ecosystem which is developing but at

very nent stage the whole idea and the

challenge to how to include that and

also you have had had a wonderful

interface with Academia uh also the

industry where do you see the Harmony

and and uh and also in terms of the

policym where we address that sir yeah

you

know I'll just take you 20 years

back or maybe 30 years back you know

when the infrastructure development was

primarily done based on government

budgeting and there is a limit to how

much the government could have funded

the

infrastructure and then government

innovated and started using the PPP

model there were difficulties and

initially it was not so

successful but now you see thanks to

various type of PPP

models the scale at which infrastructure

can be developed for every one rupee put

for infrastructure in government it is

possible to leverage anything between 3

to 4 rupees from the the private sector

in the infrastructure development right

the important point I wanted to make is

is to develop models when we say that

R&D in the private sector has to come up

we need to create models by which we

incentivize the private sector sector

and other bodies to be part of this

R&D let me give you the example of

idex which is uh you know in defense

we used to

provide the startups one and a half

crores and the stipulation was that they

should at least bring in matching

contribution from their side to create

the product right what was the incentive

the incentive was that the product if it

is developed to the requirements of the

Armed Forces the Armed Forces will buy

this to a certain specified quantity now

this is a model in which large number of

startups came forward and started

developing new products and new

technologies so what we have done is we

have given partial funding we have got

them to put in their own money by using

the procurement of

government procurement needs of the

government on this Innovative technology

so that is first point the second point

I want to make is I think it is more

than merely about

funding it is very important that we

Leverage The capability of other

stakeholders when we are looking at only

government Labs whether it is Dr and I

must say Dr has done some fantastic work

in large number of

areas but then there is a limited number

of people who work in a constraints of

the government system which is there but

the moment you open

up it is like you are leveraging the

capability of the nation whether you are

in academics whether you are a startup

whether you are an industry whether you

are any other individual who is able to

contribute the framework should enable

him to actually come up and use his

ideas so from a limited set of let's say

you know drdo or any few thousand people

you have suddenly few several cor people

who are actually working on a problem to

solve it and that is what we saw again

in idex that we opened up the whole

capability of the nation to solve a

problem and the third thing which I want

to say is

that as a nation we need to develop the

culture of respecting

and owning up our own

products the world does it India is the

world's largest global cap capability

centers the top Fortune 500 companies

75% of them have developing their R&D

here and going and keeping the IP

elsewhere but somehow when a product is

developed in India people you know

whether it is as good as the one

developed outside we have to start

believing that we are creating the best

products in the world look at what

happened in

covid-19 that vaccine that we created in

India turned out to be far better than

you know I don't want to name other

foreign companies who created the

vaccines our results are far superior to

that and in other cases so this ability

to

actually own up our own

products and recognize them as the best

in the

world Dr AB karandikar here has standard

essential patn for Telecom in his name

which has been created it it is a great

credit to have a global standard

essential

patent created here and today now he was

the first who had created now there are

large number of such patents which have

been created in the country a journey

has started we have to celebrate this

culture of innovation and R&D in the

country so that more people will come

into it and that will and the last part

I want to say which I think is very

important from developing the R&D

culture we have to create rules and

procedures which enable an R&D product

developed in India to be used and

procured by the

government remember if a R&D product is

going to be produced it is going to be

the first one that is why it's

R&D but very

often we in government tend to say we

need three people to participate for the

product to participate in a tender we

must realize that if if it's an R&D

product it will be the first one and

therefore there will not be three people

and therefore systems to procure this

on Frameworks by through which such an

R&D product can be procured by the

government will need to be created that

will enable and promote the R&D I think

Dr Kumar you have addressed all the

fundamentals you know and hit the right

notes uh and coming back to it's the

whole idea how to broaden the research

and uh development in our country which

goes beyond the realm of government that

has been the point discussion government

has also realized in fact in the budget

24 we're talking about uh uh government

has for with the new Mission and act

which is called uh anusandhan Foundation

act 2023 which was launched by the

government to boost

R&D uh is it would be the game changer

we need some sort of policy like this

how we going to spread out you know uh

say is is a great amount of coppers

which we talk about one lakh CR which

government wants to build up across

various seor sector it it looks very

ambitious and how we address that we

also see as Dr Kumar has pointed out

some sort of uh corporate incentive to

Industry to do their R&D research how

these model work as as a secretary how

do you work out in the policy domain you

know no I think uh first of all I think

let me just tell you that as Dr aay

Kumar mentioned uh that this idex model

uh has been very very successful and one

of the important objectives of the idex

model was really to provide the much

needed support to startups which have

been working in the Deep Tech area and

critical and emerging Technologies now

in these uh you know technology systems

there is a certain longer gestation

period and you really need some kind of

a patient capital and that cap although

you know in the recent years we have

seen a significant inflow of venture

capitals in the startups and a

significant Investments by the private

investors yet uh you know the uh the

kind of patient Capital that is needed

in the Deep Tech startups or in the

critical and emerging Technologies uh

has uh not happened that much uh you

know that should all the venture capital

investment and private sectors

investment in the startups have been in

those startups which are sort of safe

sort of startups or in those areas you

know where the high risks

are there that has been very less kind

of uh investment and in order to uh spur

that investment uh I think idex was

definitely a model which was has been

quite successful now that model sort of

needs to be scaled uh across the sectors

in all areas in a much larger way I

would like to sort of narrow our

discussion more on some of the specific

aspect of uh emerging critical

technology the r is so vast but then in

in all the Technologies there are few

which are very pertinent very important

for example the the very role of

semiconductor and Chip making which goes

into almost every aspect of

our key technology equipment systems

from military to civilian whether it is

drones civilian drones or military

drones or or or avionics or or many

different elements basically uh where

are we now uh in these two technology we

also had issues and faced problem

because even we import our uh when we

manufacture something in India the

sensors SP which depend on the

semiconductor basically it has to be

imported has to be procured and that's

also security concern how far we have

reached government has Focus much much

more on this particular aspect I would

like to know uh if if if the policy is

in right direction and and we are moving

in right direction and how far we are

able to succeed to have high quality

cheap Manufacturing in India and when

I think maybe begin with Dr Kumar yeah

just I think before I just wanted to

mention here that there are two aspects

to semiconductor one is the Fab and I

think Dr Raj Kumar uh can dwell on it

but I also want to say that in India we

have a tremendous capacity in fabulous

semiconductor design and in chip designs

in fact uh if you see uh all the major

uh chip design compan companies faet

design companies have their design R&D

houses in the company in India and those

fabulous designs are really done uh all

by Indian Engineers so we have a huge

capacity of U uh uh you know creating a

successful ecosystem of fabulous chip

design uh and designing of uh uh

semiconductor on chips for various

applications uh not only you know for a

market to serve uh Indian civil and

defense Market but also could become you

know globally competitive now

semiconductor Fab is a uh sort of a

different area because it requires huge

Investments uh compared to the you know

fabulous semiconductors or a chip design

uh companies uh in fabulous chip design

companies I feel uh we really we should

be treating this as I just mentioned as

a deep Tech startups which could be

incentivized through programs like idex

and where uh you know the semiconductor

companies can develop chipsets which are

useful for the systems to be deployed in

India whether they are the Telecom

systems or whether they are the defense

or uh whether they are in the medical

devices or Technologies or whether they

are in uh you know AG Tech and so on uh

but uh uh and I'm sure I think we must

have a uh you know definite steps in the

direction ctions and incentivize

companies and startups in that area when

it comes to semiconductor Fab it is uh

like a huge investment that is required

it is not uh uh the work of some

startups or something uh this can only

be done uh you know if there is a

substantial um support from the

government in fact this has happened

world over even uh leading um countries

such as Taiwan and other things have had

substantial government supports for uh

semiconductor fat I I think United

States has committed some trillion

dollar and also Indian government has

also taken some huge steps you know I I

would like to come back to Dr Kumar how

is unfolding because this is really the

heart of the critical and emerging

technology as far as the chip making and

and and and semiconductor areas are

concerned also keeping if you have if

you budget entering budget but we have

taken something out of that if you if

you can take out on the policy part also

keeping the budget in your mind you know

you know so let me talk about this

announcement which you mentioned for one

lakh K I think this

has

not received adequate attention we are

looking at a historic watershed moment

in the history of the nation and I say

this with full

responsibility 75

years and we are still largely except a

few exceptions a service nation and when

I say service I am also including

Manufacturing Services as part of the

service we have not been creating

products and like I said there may be

few exceptions but as a broad

category today this announcement of 1

lakh cor actually

Heralds moving the nation from a service

economy to a product

nation and why this is so important

please remember as a service economy you

can only go at a this far and not

further and what do I mean by saying

that the rate of growth with the service

economy because service economy

typically works on the Arbitrage of the

service that it provides for example

when you are doing software

Services you may get 20% 30% of the you

know over the labor cost for which the

service has been provided that is

typically how it works but the person

who actually develops the product as we

know most of the product companies do

get 50 60 70% profit over a period of

long period of time so the moment you

start becoming product Nation

your rate of growth which is today

hovering from 6 to 7% can go to 9 to

10% and therefore what it implies is

that we in India today we are looking to

get into a middle income level so it's

direct correlation with the economic

growth and and absolutely if we want to

become a developed nation in the next 20

years we have to become a product nation

and this is why this announcement is so

important Dr Kumar in the posi of time

uh but this is last but very critical

questions again you know the lack of

higher standard of research uh

especially in our Academia uh baring few

I and I is a challenge you know you come

from a a deep Academia and it very

prestigious institution where do you see

the Lacuna how we can address that

because this is all about the larger

research and Technology base uh which

comes out of Academy around the world if

you see many Advanced country including

Nordic also European countries quick

note on this so I think uh you are

absolutely right in fact this is also

reflected in the fact that uh in terms

of full-time equivalent R&D Personnel in

our country is really low compared to a

global average and uh that is clearly

because uh we don't have both uh you

know the qu quality and also the

quantity in terms of uh um you know the

R&D like at the PHD level uh you know in

our academic institutions in science and

engineering in fact this fact has been

recognized in the National Education

policy uh the where it has been clearly

mentioned that uh we need to uh you know

boost the research and R&D ecosystem in

uh other tier 2 tier 3 universities

state universities and colleges and the

NRF you know which we just spoke in fact

U um as uh uh it is also one of the

objectives of the NRF to see that how

you know these tier 2 tier three

institutions uh can be funded through

the R&D programs now currently you know

one of the problems in these

institutions is that that uh in many of

these institutions they also do not have

the capacity to even absorb the funds

even if you fund uh you know want to

fund the r&

and uh therefore one of the ways you

know that we are thinking uh could be to

create like an Hub and spoke model where

some of these institutions which have

the capacity which can come up uh can be

um considered as spokes partner of um

you know the hubs which have been

created in tier one institutions like

iats and isc's in some of the national

missions uh that uh you know we are

going to launch launch whether it is in

uh Quantum or AI or in cyber physical

systems where the uh capacity of these

tier 2 tier three institutions can be

enhanced by uh making them a spokes

partners of hubs uh and maybe in the

next few years uh like you know 5 10

years once the capacity of these

institutions increases then I think uh

you know uh they can also be competitive

with iats and IC so I think this is

definitely one area where we need to

focus and this has been recognized both

in our National Education policy and NRF

I thank you both for your Valu and

insights as India is marching towards a

greater economy technology plays a

critical role this is Manish kumara

signing off of sun TV I thank you both

thank you thank

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you

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