Here’s a bold statement: India’s tech future hinges on a radical shift in how we fund innovation. But here’s where it gets controversial—former ISRO Chairman S Somanath believes the government should step back from directly funding R&D and deep tech startups. Instead, he argues, the government should act as a buyer, while the private sector takes the lead in funding these ventures. This idea flips the traditional model on its head, but Somanath insists it’s necessary to foster a more sustainable and export-driven ecosystem. During the 28th Bengaluru Tech Summit, he pointed out that the government currently purchases Rs 1.5 lakh crore worth of products from startups it funds, yet exports remain a meager Rs 35 crore. And this is the part most people miss—without a shift toward business-oriented models, India risks falling behind in the global tech race.
Somanath’s call to action wasn’t the only eye-opening moment at the summit. Prashanth Prakash, founding partner of Accel Partners, urged the government to increase its R&D budget, which currently hovers below 1% of GDP—a figure he called woefully inadequate. He highlighted the creation of a new R&D funding account for deep tech, but stressed that more needs to be done. Here’s a thought-provoking question for you: Is India’s talent pool being fully utilized, or are we losing out to overseas opportunities? Somanath believes India has no shortage of talent, but the real challenge lies in creating an environment that not only retains but also attracts back the brightest minds who’ve left for greener pastures abroad.
This isn’t just about numbers or policies—it’s about reimagining India’s role in the global tech landscape. What do you think? Should the government step back from funding startups, or is direct investment still crucial? Let’s spark a conversation in the comments and explore the future of India’s frontier tech together.
