[Answered] To achieve a $5 trillion economy and lead globally, India must embrace cutting-edge technology. Discuss the policy frameworks and governance reforms essential for fostering disruptive innovation and accelerating this technological leap.

Introduction

India stands at the cusp of becoming the world’s fourth-largest economy, with the IMF projecting its GDP to cross $4.19 trillion by 2025. However, to transition into a $5 trillion economy by 2027 and emerge as a global innovation leader, embracing cutting-edge technologies—from artificial intelligence to quantum computing—is not just desirable but essential.

Need for Technological Leap

1. Historically, India missed the first two industrial revolutions due to colonial subjugation and only partially benefitted from the third, i.e., the digital revolution.
2. The Fourth Industrial Revolution (4IR)—driven by AI, robotics, blockchain, and biotechnology—offers a unique opportunity to leapfrog development stages and define global standards. However, this requires radical transformation in India’s policy architecture and innovation ecosystem.

Reforms Required

1. Strategic Policy Direction: India’s current innovation push is led by initiatives like Startup India, Make in India, and the Atal Innovation Mission. Yet, India ranked 40th in the Global Innovation Index 2023, behind China (12th). A National Disruptive Innovation Policy—on the lines of the US’s DARPA model or EU’s Horizon Europe—is crucial to fund moonshot ideas, especially in space tech, defence AI, and synthetic biology.
2. Strengthening R&D Investment: India’s Gross Expenditure on R&D (GERD) is just 0.7% of GDP, far below China’s 2.4% and the US’s 3.1%. The National Research Foundation (NRF), with a budget of ₹50,000 crore, must channel public-private partnerships into high-risk, high-reward technologies. Corporate tax incentives and performance-linked grants should be offered to incentivize industry-led R&D.
3. Reforming Data and Digital Governance: India’s digital public infrastructure—Aadhaar, UPI, and DigiLocker—offers a foundation for innovation. However, the potential of technologies like AI and quantum computing hinges on access to large, open, and secure datasets. The forthcoming Digital India Act and Data Protection Bill must balance privacy with innovation by enabling data trusts, sandboxes, and open-data ecosystems in sectors like agriculture, climate, and healthcare.
4. Skilling for Future Technologies: The National Education Policy (NEP) 2020 emphasizes skill development, but implementation must be scaled. STEM education, coding, and design thinking should be embedded from school levels. Centers of Excellence in AI, cybersecurity, and clean tech, in collaboration with global tech leaders, should be expanded beyond metros into Tier-2 and Tier-3 cities.
5. Agile Regulation and Governance: To keep pace with technological change, regulatory sandboxes like those introduced by the RBI for fintech must be extended to emerging domains—AI, autonomous vehicles, genome editing, and green hydrogen. A Technology Ethics Commission could help balance innovation with equity, inclusion, and national security.
6. Inclusive and Decentralized Innovation: Innovation should not be elite-driven. Expanding Atal Tinkering Labs, Startup India Seed Fund, and the IGNITE Awards to grassroots innovators in rural India will democratize disruption and fuel inclusive growth. India’s 65,000+ startups, many in non-metro areas, are proof of this potential.

Conclusion

India’s economic ascent cannot rely on incremental growth. To truly become a $5 trillion economy and a technological superpower, it must lead, not follow. With the right governance reforms, bold policy vision, and inclusive innovation culture, India can define the contours of the global knowledge economy in the decades to come.