In an increasingly fragmented global landscape, India faces the critical task of leveraging its strengths to compete effectively. While the nation has made significant strides in scaling its economy, a renewed focus on innovation is essential to secure its position and fully capitalize on emerging opportunities.

India's economic growth has been remarkable, becoming the world's fourth-largest economy, a significant leap from 11th place just a decade ago. Projections indicate that India is on track to become the third-largest economy by 2030, with a projected GDP of $7.3 trillion. This growth is fueled by strong domestic demand, transformative policy reforms, and a growing workforce. The government's emphasis on self-reliance, or "Atmanirbhar Bharat," guides India's telecom evolution with the mantra: "Design in India, Solve in India, Scale in India".

However, India's participation in global value chains (GVC) remains modest compared to its competitors. A 2022 estimate found that India's GVC participation rate was considerably lower than the world average and that of many emerging economies. To enhance its GVC participation, India needs to focus on policies that raise firm productivity, encourage technology adoption, and build export capabilities in critical sectors.

Innovation is crucial for India to move up the value chain and achieve sustained economic success. While India has a large pool of IT professionals and a strong digital infrastructure, it lags behind in research and development. Several factors contribute to this gap, including insufficient public funding for research, a lack of cutting-edge research labs, and an underdeveloped hardware industry.

To foster a culture of innovation, the Indian government has launched initiatives such as the Atal Innovation Mission (AIM), which aims to promote entrepreneurship across the country. AIM is setting up Atal Tinkering Labs in schools to foster creativity among students and Atal Incubation Centers to support startups.

Despite these efforts, Indian startups face challenges in scaling up their innovations. These challenges include high capital requirements, limited access to funding, and bureaucratic obstacles. Venture capital funds are often hesitant to invest in Indian innovation due to the lack of attractive exit routes. Furthermore, government support is often spread thinly across many startups in small amounts, making it difficult for any to scale meaningfully.

To overcome these challenges and compete effectively in a fragmented world, India needs to prioritize the following:

• Increase investment in research and development: India spends less than 1% of its GDP on R&D, which is lower than most of its global peers. Increased public funding is essential to improve research infrastructure and foster a culture of innovation.
• Streamline regulations and reduce bureaucratic hurdles: Complex regulations and approval delays hinder startup growth and operations. Simplifying and streamlining regulations will create a more conducive environment for innovation.
• Promote domestic venture capital: The absence of strong home-grown venture capital firms prevents strategic long-term investment. Encouraging the growth of domestic VCs will provide startups with access to much-needed capital and expertise.
• Focus on deep tech: Venture capital is increasingly moving towards deep tech, including AI, blockchain, and electric mobility. Supporting startups in these areas will drive technological innovation and create sustainable competitive advantages.
• Enhance collaboration between industry, academia, and government: Collaboration between these stakeholders is essential to translate research into commercial applications and address societal challenges.

India is at a pivotal moment in its economic journey. By prioritizing innovation and addressing the challenges faced by startups, India can unlock its full potential and emerge as a global leader in the 21st century. The Emerging Science, Technology and Innovation Conclave (ESTIC-2025) is a step in this direction, providing a platform for collaboration and showcasing India's scientific prowess. As India continues its rise, a commitment to innovation will be the key to navigating the complexities of a fragmented world and securing its place as a major global power.