AI will Replace Certain Jobs but Also Create New Ones

S Krishnan, secretary, Ministry of Electronics and Information Technology (Meity) talks about R&D, funding and various schemes for start-ups, in an interview to Neeraj Thakur and Parth Singh.

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What is the objective of Meity's start-up schemes?

Technology space is driven by innovation, and innovation usually comes from start-ups. That is why I think for us it's very important that a start-up ecosystem is encouraged so that innovation takes place. So yes, innovation is the primary objective.

India's annual spend on research and development (R&D) has remained stagnant at about 0.6% of GDP. Isn't that hampering our pace of tech innovation?

One of the core issues is the lack of risk-taking behaviour among Indian companies. Developing products involves high risks—while it offers the potential for significant profits, there is also the chance of no returns. As a result, many companies gravitate towards services, which provide steady margins and a stable business model.

The recent announcement of the Anusandhan National Research Foundation aims to provide substantial resources for research financing. Additionally, the finance ministry is working on establishing a dedicated R&D fund, announced in the last Budget.

Within MeitY, the R&D budget has seen a significant increase—from Rs 600 crore two years ago to Rs 1,148 crore this year. The focus is now on applied research. Efforts are being made to co-finance research with industry and academia.

A lot of start-ups in deep tech say they find it hard to raise funding and get customers in India. Eventually they 'flip' their companies to the US. How can we discourage this trend?