india-lacks-innovations-in-automobile-sector-niti-aayog

Lack of innovation due to inadequate Research and Development (R&D) infrastructure is stalling India's growth in the global automobile sector, a report by NITI Aayog has revealed.

 

Drawing a comparison with leading automotive powers such as Germany, Japan, and the United States, the report said India's spending on R&D is among the lowest in the world.

 

It said "One of the most critical barriers to India's growth in the global automotive sector is the lack of innovation, largely driven by inadequate Research and Development (R&D) infrastructure."

 

The report added "This underinvestment severely limits the country's ability to compete in emerging technologies such as EVs, autonomous driving, and smart mobility solutions".

 

While Indian manufacturers have built a strong reputation for producing low-cost, high-volume vehicles, the report noted that the absence of a strong innovation culture has prevented the development of advanced and differentiated products. This lack of innovation makes it difficult for India to stand out in the highly competitive global automobile market.

 

One of the major challenges cited in the report is the minimal collaboration between the industry, academic institutions, and research organisations. This limited interaction restricts the exchange of ideas and technological breakthroughs that are crucial for developing next-generation automotive solutions.

 

As a result of these gaps, Indian companies often depend on foreign technologies, which increases manufacturing costs and reduces the potential to build cutting-edge vehicles locally.

 

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The report specifically points out that India is lagging in critical areas such as battery technology, Advanced Driver Assistance Systems (ADAS), and AI-driven manufacturing. These technologies are seen as essential for the future of the global automotive industry

 

To overcome these challenges and achieve long-term growth, NITI Aayog has emphasized the need for a substantial increase in R&D investment.

 

It said "To remain competitive and achieve long-term growth, India must significantly increase its R&D expenditure and build a robust ecosystem that fosters innovation and technological advancement".