BS EDIT: Beyond valuations: India must invest more in R&D

By Business StandardPublished On Apr 8, 2025

A reality check

Piyush Goyal criticised startups for chasing valuations over innovation. His comments underline India’s need to go beyond service-led growth

Scaling without inventing

India has over 117 unicorns—but most are in ecommerce or fintech. Real innovation remains limited to a few deeptech outliers

Deeptech’s slow rise

India has 4,000 deeptech startups, and funding is rising. But China and the US are far ahead in risk-taking and deeptech investments

India’s R&D gap

India spends less than 1% of GDP on R&D. Weak academia-industry ties and limited VC interest in tech deepen the challenge

What must change

Stronger R&D funding, deeptech innovation funds, and tax incentives are critical. Startups need support to build—not just scale

A national priority

Innovation must be strategic. If India wants to lead in AI, biotech or semiconductors, it must invest deeply and consistently in science