From ‘Made in India’ to ‘Imagined in India’: Sitharaman Calls for a New Innovation Push
Finance Minister Nirmala Sitharaman has called on Indian industry to strengthen its commitment to research, development and innovation, saying the country’s economic ambitions must increasingly move beyond manufacturing towards creating technologies, products and intellectual property of its own.
Addressing the All India Management Association’s National Management Convention in New Delhi, Sitharaman urged India Inc. to move from “Made in India” to “Imagined in India.” The message places greater emphasis on developing ideas, technologies and products in India and subsequently taking them to global markets.
The shift comes at a time when India is expanding its manufacturing capabilities while also building capacity in areas such as semiconductors, artificial intelligence, biotechnology, space technology, clean energy and advanced digital technologies.
Private Sector R&D Becomes Increasingly Important
India’s research ecosystem has expanded considerably in recent years, but the share of R&D expenditure in the economy remains relatively modest. According to the latest Department of Science and Technology data, India’s gross expenditure on R&D rose to about ₹2.45 lakh crore in 2023–24, equivalent to 0.84% of GDP.
At the same time, the contribution of the private sector has been increasing. Its share of total R&D expenditure rose from 33.8% in 2019–20 to 51.8% in 2023–24, while the government sector’s share declined from 66.2% to 48.2% during the same period.
Sitharaman’s appeal to corporate India therefore comes as private companies increasingly become an important part of India’s research and innovation landscape. Greater investment by businesses could help connect scientific research with commercial applications and support the development of globally competitive Indian technologies.
₹1 Lakh Crore RDI Fund Strengthens the Innovation Ecosystem
India has also created a major financing framework to encourage private-sector participation in advanced research. The Research, Development and Innovation (RDI) Scheme, approved in July 2025, has a total outlay of ₹1 lakh crore over six years, including ₹20,000 crore for 2025–26.
The scheme is designed to support high-impact projects in areas such as artificial intelligence, quantum technologies, robotics, biotechnology, medical technology, clean energy, space and the digital economy. It provides long-term financing and equity support and also includes a Deep-Tech Fund of Funds aimed at strengthening investment in emerging technologies.
The RDI Fund is being implemented through the Anusandhan National Research Foundation and a two-level funding structure. The framework is intended to channel capital through specialised fund managers and help innovative companies move promising technologies closer to commercialisation.
Moving From Manufacturing to Intellectual Property
The idea behind “Imagined in India” is broader than simply increasing domestic production. Manufacturing remains an important part of India’s economic expansion, but developing original designs, patents, software, engineering solutions and proprietary technologies can allow Indian companies to participate in higher-value segments of global supply chains.
For businesses, this means combining manufacturing capabilities with research and product development. A stronger domestic innovation ecosystem could help Indian companies create technologies for both the Indian market and international customers.
This approach is particularly significant as emerging industries increasingly depend on advanced technology and intellectual property. Building capabilities in these areas can also strengthen India's ability to develop solutions suited to its own economic and social requirements.
Innovation Across Emerging Sectors
The current innovation push extends across several sectors that are expected to influence the global economy in the coming years. Artificial intelligence, semiconductors, quantum computing, biotechnology, clean energy and space technology are among the areas receiving increasing attention through India's research and technology programmes.
The RDI framework specifically identifies energy security and climate action, deep technologies, AI, biotechnology and the digital economy among its priority areas. This creates an opportunity for Indian companies, startups and research institutions to work together on technologies with commercial as well as strategic applications.
Expanding the Market Beyond Major Cities
Sitharaman also highlighted the importance of looking beyond India's affluent urban consumers. She pointed to the country's broader base of working families connected with agriculture, construction, transport and informal enterprises as an important part of future consumption growth.
For Indian businesses, this creates another opportunity for innovation. Products and services designed around India's diverse consumer needs can potentially create new domestic markets while also generating solutions that may have relevance in other emerging economies.
Investment is also spreading beyond the largest metropolitan centres, with growing opportunities in tier-2 and tier-3 cities and in sectors such as electronics, biotechnology and green energy.
Building an Innovation-Driven Economy
India’s evolving economic strategy increasingly combines manufacturing, infrastructure, entrepreneurship and technological development. The next challenge is to ensure that research leads to products, businesses and technologies that can operate successfully at scale.
Sitharaman’s call for a transition from “Made in India” to “Imagined in India” places Indian industry at the centre of this process. Greater corporate R&D, stronger university-industry partnerships and increased support for deep-tech companies can help build a more integrated innovation ecosystem.
The MGMM Outlook
The call to move from “Made in India” to “Imagined in India” highlights an important next step in the country’s economic and technological journey. India has been strengthening its manufacturing base while also expanding capabilities in semiconductors, artificial intelligence, biotechnology, space, clean energy and other emerging fields. With private-sector participation in R&D rising and the ₹1 lakh crore Research, Development and Innovation (RDI) framework providing long-term support, Indian companies and startups have greater opportunities to turn research and ideas into commercially viable technologies and intellectual property.
The larger opportunity lies in building an ecosystem where industry, startups and research institutions work together to develop solutions for both Indian and international markets. Combining manufacturing strength with original research, design and innovation can help Indian businesses move into higher-value areas of global supply chains while addressing the diverse needs of the domestic market. The transition towards an innovation-driven economy therefore represents a broader effort to ensure that ideas developed in India can become technologies, products and businesses with global relevance.
(Sources: Moneycontrol, Financial Express, News18)
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