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Speaking at the CII Annual Business Summit 2026, NITI Aayog Member Rajiv Gauba underscored that increased R&D investment is a strategic imperative for India's future prosperity. He observed that despite significant per capita income growth since 1991, nations like China, starting from similar economic levels, have achieved substantially faster development. Gauba pointed out that India's gross R&D expenditure remains critically low at 0.7% of GDP, falling well below the global average of 2.3% and considerably behind innovation leaders like South Korea and Israel. He added that approximately 60% of this limited funding comes from the government.
Industry's Role and Skilling
Gauba urged Indian industry to shed its instinct for protectionism and shift from importing technology to creating it, emphasizing that R&D investment is not a cost but a necessity. The rise of Industry 4.0 and AI has made workforce skilling a matter of survival, a responsibility that cannot fall solely on the government. He highlighted a significant formal skilling gap, with minimal formal training for workers in sectors like construction and tourism.
Deregulation and Trust-Based Governance
To bridge the gap between potential and reality, Gauba called for a comprehensive exercise in deregulation, likening excessive regulations to "regulatory cholesterol." Since 2014, over 42,000 compliances have been eliminated, but a fundamental shift towards trust-based governance is required. He outlined principles for a "Jan Vishwas Siddhant," suggesting licenses should only be for national security or high-risk activities, with automatic self-registration as the norm for others. Economic strength, Gauba concluded, remains the cornerstone of national security and the most effective foreign policy.