The margin trap: Why innovation matters more than short-term profits

India needs to get on the innovation cycle - and everyone has a part to play. The government must provide basic funding and strengthen linkages between industry and academia

One of the clear takeaways when speaking with senior people working with Apple is their disappointment at the lack of willingness among India Inc to step up and make the investments needed to bring the Apple ecosystem into India. While China is putting up obstacles, the profit focus of Indian entrepreneurs is also a stumbling block. Whether it is putting up the component supply chain or making large capital investments for display units, there is a lack of interest on the part of large Indian groups to commit capital.

 

They cite the low margins on offer and the intense scrutiny