Here’s a bold statement: India’s tech future hinges on a radical shift in how we fund innovation. But here’s where it gets controversial—former ISRO Chairman S Somanath argues that the government should step back from directly funding R&D and deep tech startups. Instead, he believes the government should act as a buyer, while the private sector takes the lead in investing. This isn’t just about shifting funds; it’s about reshaping the ecosystem to foster self-sustaining innovation. During the 28th Bengaluru Tech Summit, Somanath pointed out a striking imbalance: the government currently purchases Rs 1.5 lakh crore worth of products from the startups it funds, yet exports stand at a mere Rs 35 crore. And this is the part most people miss—India’s R&D efforts need to pivot toward export-driven, business-oriented models to truly thrive on the global stage.
Somanath’s call to action wasn’t just about funding. He emphasized the need to create an environment that attracts back the talent India has lost to foreign universities and opportunities. After all, as he noted, India is brimming with intellectual capacity—what’s missing is the infrastructure to harness it effectively.
Prashanth Prakash, founding partner at Accel Partners, echoed this sentiment, urging the government to scale up its R&D budget, which currently hovers below 1% of GDP. He highlighted a positive step: the Union government’s new R&D funding account for deep tech and other sectors. But is this enough? Here’s a thought-provoking question for you: Should India prioritize increasing R&D funding or focus first on creating a more conducive environment for innovation?
This debate isn’t just academic—it’s about shaping India’s role in the global tech landscape. Somanath’s vision challenges traditional funding models, while Prakash’s call for increased investment underscores the urgency of the situation. What do you think? Is the government’s role to fund or to facilitate? Share your thoughts in the comments—let’s spark a conversation that could redefine India’s tech future.
