Rethinking Innovation in India: Why Public Sector Science May Be Our Best Bet

India’s global rise as a service powerhouse often overshadows an uncomfortable truth—our private industrial and technology sectors have yet to become serious contenders in innovation. While Indian conglomerates dominate sectors like steel, pharmaceuticals, and IT services, a glaring gap remains in cutting-edge R&D and core engineering breakthroughs. Despite the demographic dividend, a growing digital economy, and global talent recognition, the country continues to punch below its weight in technological invention and IP creation.

Private Sector: An Implementation Powerhouse, Not an Innovation Leader

Most Indian engineering and IT firms serve global supply chains as service providers and system integrators. Their business models focus on cost arbitrage, operational efficiency, and outsourced delivery—making them “implementers,” not innovators. From TCS to Infosys and L&T to Tech Mahindra, the emphasis remains on fulfilling client needs rather than creating novel solutions that redefine industries.

There is no Indian equivalent of a SpaceX, Nvidia, or Huawei—firms that not only commercialize ideas but push technological frontiers. Even India’s most celebrated unicorns and tech startups largely function within frameworks built on existing Western platforms—delivery apps, fintech APIs, edtech SaaS—rather than true homegrown scientific or hardware innovation.

Startups: Orphans of the Corporate Ecosystem

The Indian startup ecosystem, though vibrant in numbers, often finds itself isolated from mainstream corporate India. Unlike ecosystems in the U.S. or Israel where large firms partner with, invest in, or even acquire startups to scale ideas, Indian conglomerates have shown reluctance. The lack of mentorship, capital infusion beyond VCs, or procurement opportunities from Indian firms means startups often look Westward for validation and survival.

Public Sector: The Unsung Heroes of Indian Innovation

In this vacuum, India’s state-backed scientific institutions remain the only true bastions of R&D. From ISRO’s cost-effective space launches to Bhabha Atomic Research Centre’s nuclear capabilities, and DRDO’s defense systems, public institutions are the ones leading innovation. While not always perfect—HAL being often criticized for inefficiency and delay—their contributions still far outpace their private counterparts in IP generation and indigenous design.

Time to Empower National Champions

India must rethink its industrial policy and reinvest in public-sector-led R&D. This means:

1. Creating more ISROs and BARC-like centers in emerging fields like AI, quantum computing, biotechnology, and green hydrogen.
2. Funding interdisciplinary R&D clusters with tie-ups across IITs, CSIR labs, and government R&D agencies.
3. Mandating private sector contribution to national tech missions—whether through PPPs, innovation funds, or joint R&D projects.

Countries like China have demonstrated the power of state-backed enterprises and academic-industrial collaboration to leapfrog in technologies. For India, relying on a handful of billionaires to lead innovation is not just risky—it’s strategically shortsighted.

The Potential of the Indian Mind

Indian scientists and engineers continue to excel globally—from running NASA missions to driving Google’s AI research. What they need is not validation, but a visionary ecosystem at home. A National Innovation Mission, built on the strengths of public sector science, coupled with structured private sector participation, could close the gap with the West and China in a decade.

A reality we can no longer ignore: India cannot rely on market forces alone to deliver technological sovereignty. If the private sector won't lead, the public sector must. With strategic intent and bold policy, India can nurture its own DARPA-style ecosystem—deep tech, mission-driven, and aligned with national interest.

It is time to empower the Indian mind, not just for global admiration but for national