How do we develop ‘core’ technologies?

Syllabus
GS Paper 3 – Awareness in the fields of IT, Space, Computers, robotics, nano-technology, bio-technology and issues relating to intellectual property rights.

What does this article provide?
This article explores the strategies for developing essential technologies in India, emphasizing the importance of collaboration among academia, industry, and government. Students should understand the role of core technologies in national development and the barriers to their growth.

Potential Topics for Prelims
Raman effect, Semiconductor technology, Artificial Intelligence, Quantum Computing, Cybersecurity, PLI scheme, Semicon India, Digital India Mission, e-Sanjeevani, India’s EdTech sector, Startup India, iCET (Initiative on Critical and Emerging Technologies), Make in India, National Research Foundation.

Potential Topics for Mains
Importance of core technology for India, Key issues hindering the growth of core technology in India, Role of academia-industry-government collaboration in technology development, Policy measures for promoting core technology, Case studies on successful technology innovations in India

Source
The Hindu Business

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How do we develop ‘core’ technologies?

Introduction

From the Raman effect in 1930 to contemporary semiconductor technology, India has continually showcased its ability to create pioneering ‘core’ technologies. Nevertheless, the nation has faced persistent challenges in commercializing these innovations, often ceding market advantages to foreign competitors. This historical disconnect among academia, industry, and government has left India reliant on imports for critical technologies, despite possessing the intellectual prowess to develop them. Bridging this gap between scientific excellence and commercial success is vital for India to realize its vision of becoming a technology-driven developed economy.

Understanding Core Technology

• Definition of Core Technology: Refers to the essential, advanced, and critical technologies that underpin innovation and drive growth across various sectors, economies, and national priorities.
• Key Characteristics of Core Technology:
  • Foundational Nature: Serves as the essential building blocks for other technologies and applications.
  • Broad Applicability: Finds uses across multiple sectors including defense, healthcare, education, and manufacturing.
  • Strategic Importance: Often defines a nation’s economic, military, and geopolitical strength due to its crucial role in security, governance, and innovation.
• Examples of Core Technology:
  • Semiconductors: Chips utilized in electronics, computing, and AI.
  • Artificial Intelligence (AI): Technologies for machine learning, natural language processing, and automation.
  • Quantum Computing: Advanced computing that leverages quantum mechanics for exceptional processing power.
  • Cybersecurity: Tools designed to safeguard digital infrastructure and data from threats.
  • Space Technology: Satellites, launch vehicles, and space exploration instruments.
  • Advanced Manufacturing: Technologies such as 3D printing, robotics, and Industry 4.0.
  • Green Technologies: Renewable energy solutions like solar panels, wind turbines, and green hydrogen.
  • Telecommunications: Core technologies supporting 5G, fiber optics, and next-generation communication systems.

Importance of Investing in Core Technologies for India

• Economic Growth and Global Competitiveness:
  • Investing in core technologies like AI, semiconductor manufacturing, and quantum computing is pivotal for driving India’s economic growth.
  • These technologies spur innovation, boost productivity, and generate high-value jobs.
    • For example, the global AI market is expected to hit $900 billion by 2030, with India’s share increasing through investments via the National AI Mission.
    • Similarly, the PLI scheme for semiconductors aims to make India a global chip manufacturing hub, addressing the $110 billion semiconductor market shortfall by 2030.
• Strengthening National Security:
  • Core technologies like cybersecurity, drone technology, and AI-driven surveillance are essential for tackling modern security threats, including cyberattacks and border management.
    • AI-enabled tools can provide real-time monitoring of the Line of Actual Control (LAC).
    • CERT-In handled over 1.39 million cybersecurity incidents in 2022, underscoring the need for homegrown cybersecurity solutions.
    • The Defence Ministry’s collaboration with private firms through iDEX has advanced drone and anti-drone systems, improving security readiness.
• Reducing Technological Dependence:
  • India’s reliance on imported critical technologies like semiconductors and high-end electronics limits its strategic autonomy.
  • Investing in indigenous R&D ensures self-reliance in critical sectors such as telecom (5G), defense, and space.
    • The Semicon India program, launched in 2023, aims to make India self-sufficient in chip production.
• Building a Knowledge-Based Society:
  • Investments in core technologies enhance education, healthcare, and governance by fostering innovation and improving access.
    • Initiatives like the Digital India Mission have brought online connectivity to rural households, promoting e-learning and e-health services.
    • AI tools are used to predict disease outbreaks, while platforms like e-Sanjeevani have enabled over 276 million teleconsultations in rural India.
    • India’s EdTech sector, valued at $7.5 billion, showcases how digital tools are transforming education.
• Driving Climate Resilience and Sustainability:
  • Advanced technologies such as renewable energy, smart grids, and climate modeling are vital for India’s energy transition and climate action goals.
    • India has pledged to achieve 500 GW of non-fossil fuel capacity by 2030 under its Nationally Determined Contributions (NDCs).
    • Investments in green hydrogen and solar power technology will aid in meeting these commitments.
    • AI in crop monitoring has enhanced agricultural productivity while conserving resources.
• Boosting Startups and Entrepreneurship:
  • A robust tech ecosystem nurtures startups and fosters entrepreneurship, driving economic diversification and innovation.
    • With over 100 unicorns and a growing community of more than 157,000 startups, India is shaping the future of global business.
    • Programs like Startup India and the DPIIT’s support for tech startups are crucial in positioning India as a global innovation hub.
• Geopolitical Leverage:
  • Investments in core technologies enhance India’s strategic positioning and strengthen global partnerships.
    • India’s collaboration with the US under the iCET (Initiative on Critical and Emerging Technologies) highlights the role of technology in bilateral relations.
    • India’s involvement in semiconductor alliances like the Quad Semiconductor Supply Chain Initiative positions it as a key player in countering China’s dominance in tech supply chains.

Key Challenges Hindering the Growth of Core Technologies in India

• Insufficient R&D Investment and Ecosystem Support:
  • India’s investment in research and development (R&D) is only 0.65% of GDP, restricting innovation and advancement in critical sectors such as AI, semiconductors, and robotics.
  • This low investment also deters private sector involvement and collaboration with academia, which are vital for breakthrough technologies.
  • In contrast, countries like Israel and South Korea have strong tech ecosystems due to significantly higher R&D investments.
• Shortage of Skilled Workforce:
  • India lacks a sufficiently skilled workforce to meet the demands of emerging technologies like blockchain, quantum computing, and AI, hampering industrial innovation and global competitiveness.
  • According to the Economic Survey 2023-24, only 51% of graduates are employable.
  • Roles like data analysts and AI specialists are expected to see high demand, with projections indicating employment for 2.5 to 2.8 million professionals by 2030, yet current training programs are inadequate.
• Reliance on Imports for Strategic Technologies:
  • India’s dependence on imports for critical technologies such as semiconductors, lithium-ion batteries, and advanced machinery undermines self-reliance and exposes the economy to global supply chain disruptions.
  • Presently, India imports 95% of its semiconductors from countries like China, Taiwan, South Korea, and Singapore.
  • The global semiconductor shortage during the pandemic significantly impacted India’s automobile and electronics industries, costing billions in lost output and highlighting the need for domestic capacity under initiatives like Make in India.
• Policy Inconsistencies and Bureaucratic Delays:
  • Frequent changes in government policies and lengthy approval processes deter investments in core technologies, stalling projects in key areas like chip manufacturing and green technology.
  • For instance, despite the government announcing ₹76,000 crore for semiconductor manufacturing in 2021, no large-scale fabrication facilities have become operational due to procedural delays and lack of clarity.
  • India’s rank of 63rd in the World Bank’s Doing Business Report (DBR), 2020 highlights the regulatory challenges in attracting foreign direct investment (FDI) for tech innovation.
• Weak Collaboration Between Academia and Industry:
  • India’s innovation ecosystem suffers from limited partnerships between academic institutions and industries, leading to isolated research efforts without scalable outputs.
  • In 2022, India saw a record 31.6% increase in patent applications, but despite world-class research from premier institutes like IITs, only a small fraction of these patents were successfully commercialized.
  • In comparison, the US fosters tech transfer through programs like the Bayh-Dole Act, which mandates the commercialization of federally funded research, creating a thriving innovation ecosystem.
• Limited Funding for Deep-Tech Startups:
  • India’s startup ecosystem is skewed towards consumer tech and e-commerce, with insufficient venture capital for deep-tech sectors like AI, quantum computing, and space tech, which require long gestation periods.
  • Despite a surge in Indian deep-tech startups in 2023, funding dropped by 77%, according to Nasscom.
  • For example, space-tech companies like Agnikul Cosmos have struggled to secure funding for scaling operations despite their pioneering achievements in India’s private space sector.
• Fragmented Approach to Climate-Tech Innovation:
  • India’s climate-tech innovation is limited by a lack of coordinated policy and investment, despite the pressing need for sustainable technologies like green hydrogen and advanced battery storage.
  • While India committed to 500 GW of renewable capacity by 2030, investments in energy storage technologies remain insufficient.
  • In contrast, countries like Germany and Japan have made significant strides in hydrogen technology by investing heavily in R&D and creating public-private partnerships.

Measures to Enhance Core Technology Development in India

Investment and Infrastructure

• Increase R&D Investment and Public-Private Collaboration:
  • Boost R&D spending to at least 2% of GDP, similar to global leaders like South Korea and the US, to encourage breakthrough innovations.
  • Establish a dedicated National Core Technology Fund to finance advanced research in AI, quantum computing, and semiconductors, with incentives for private sector investment.
  • Link initiatives like Semicon India with academia and industry under the National Research Foundation to bridge research and commercialization gaps.
• Establish World-Class Infrastructure:
  • Prioritize the development of cutting-edge infrastructure, such as semiconductor fabs, quantum labs, and AI testbeds.
  • Provide special incentives for technology parks like the Bangalore Technology Cluster to attract global tech giants.
  • Integrate PLI Schemes with the Smart Cities Mission to build advanced industrial zones with sustainable infrastructure, ensuring a steady supply chain and efficient logistics.
• Boost Domestic Manufacturing:
  • Invest in high-tech manufacturing sectors like semiconductors, lithium-ion batteries, and advanced machinery to reduce dependency on imports.
  • Integrate the National Manufacturing Policy with the Atmanirbhar Bharat initiative to support startups and MSMEs in these domains.
  • Align FAME (Faster Adoption and Manufacturing of Electric Vehicles) with domestic lithium-ion battery production to create a sustainable EV ecosystem, reducing reliance on Chinese imports.

Talent and Collaboration

• Develop a National Talent Strategy:
  • Implement a nationwide strategy focusing on skilling and reskilling to meet the demand for an industry-ready workforce in core tech sectors.
  • Programs like Skill India should collaborate with global firms to offer hands-on training in AI, robotics, and blockchain.
  • Reform STEM curricula to include emerging technologies; for example, embed AI and data analytics courses in all engineering programs.
• Create a Unified Innovation Ecosystem:
  • Strengthen collaboration among academia, startups, and industries to foster innovation and commercialization of technology.
  • Expand initiatives like the Startup India program to provide funding and mentorship to core-tech startups.
  • Connect IITs and NITs with industrial hubs through an Innovation Exchange Platform to replicate the success of Silicon Valley-style ecosystems, enabling more effective tech transfer and scalable solutions.
• Encourage Gender Diversity in Tech:
  • Increase the participation of women in STEM and core tech roles to expand the talent pool.
  • Expand initiatives like Women in STEM to provide scholarships, mentorship, and leadership training for women in AI, quantum, and robotics.
  • Link these initiatives with programs like Digital Saksharta Abhiyan (DISHA) to ensure grassroots participation by women in tech innovation.

Strategic and Global Partnerships

• Focus on Cybersecurity and Indigenous Solutions:
  • Prioritize the development of indigenous cybersecurity infrastructure to safeguard critical sectors against rising cyber threats.
  • Expand programs like Cyber Surakshit Bharat to include real-time threat monitoring tools and robust AI-driven defense systems.
• Leverage Global Partnerships for Technology Transfer:
  • Deepen collaborations with global tech leaders through initiatives like the India-US iCET (Initiative on Critical and Emerging Technologies) to gain advanced expertise in semiconductors and AI.
  • Expand such partnerships with Japan (for robotics) and Germany (for green hydrogen tech) to fast-track India’s capabilities.
  • Link the Quad Semiconductor Initiative with domestic efforts under Semicon India to build resilient supply chains.
• Build Strategic Reserves of Rare Earths:
  • Invest in domestic exploration and mining of rare earth minerals to reduce dependence on imports for semiconductors and EV batteries.
  • Integrate the National Mineral Exploration Trust with the Make in India program to incentivize private firms to develop rare earth processing facilities.
  • Form partnerships with countries like Australia, a leading rare earth mining nation, to secure India’s supply chains.

Sustainable Development and Accessibility

• Enhance Tech Accessibility in Rural Areas:
  • Ensure core technologies like AI and IoT reach underserved areas to bridge the rural-urban divide.
  • Accelerate programs like BharatNet to provide broadband connectivity to all rural regions, promoting digital inclusion.
  • Link this with the Digital India Initiative to support AgriTech solutions like AI-driven crop monitoring and precision farming tools, enhancing rural productivity.
• Adopt a Circular Economy for Sustainable Tech Development:
  • Integrate sustainability into core tech development by focusing on recycling e-waste and reducing resource-intensive practices.
  • Establish Green Technology Zones in collaboration with the National Green Hydrogen Mission to promote eco-friendly innovation.
  • Combine solar energy with battery recycling plants to support the EV sector sustainably, creating a circular economy for clean energy technologies.
• Strengthen Intellectual Property (IP) Framework:
  • Simplify the IP filing process and enhance enforcement to encourage innovation and attract foreign investments.
  • Establish fast-track IP courts and launch IP awareness campaigns to ensure quicker commercialization of innovations.
  • Link this with Startup India to provide startups with subsidized patent filing assistance, fostering a culture of protecting and monetizing innovations.

Conclusion

To realize its goal of becoming a technology-driven developed economy, India must bridge the crucial gaps in commercializing core technologies. By enhancing collaboration among academia, industry, and government, and by substantially boosting investment in research and development, India can cultivate a dynamic innovation ecosystem. Bolstering these initiatives will not only spur economic growth but also enhance national security, sustainability, and global competitiveness.

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Practice Question

Discuss the significance of developing ‘core’ technologies for India’s future. What strategies can be implemented to enhance the growth and commercialization of these technologies? [150 words]

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Guidelines to Answer the Question

• Introduction:
  • Define ‘core’ technologies and explain their importance for India’s development.
  • Mention India’s historical challenges in commercializing these technologies.
• Significance:
  • Highlight the economic, security, and global competitiveness benefits of developing core technologies.
  • Provide examples like AI, semiconductors, and quantum computing to illustrate their impact.
• Strategies for Enhancement:
  • Increase R&D investment and encourage public-private collaboration.
  • Develop world-class infrastructure and establish technology parks.
  • Implement a national talent strategy focused on skilling and reskilling.
  • Boost domestic manufacturing and reduce import dependency.
  • Strengthen academia-industry partnerships for innovation and commercialization.
  • Expand funding for deep-tech startups and promote sustainable tech development.
• Conclusion:
  • Summarize the importance of these strategies for India’s future.
  • Emphasize the need for a unified approach to achieve a technology-driven developed economy.

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