Towards an economy centered on intellectual property – Digital Transformation News

By Ajai Chowdhry

As the United States and China vie for global dominance, India needs to think about its global role in the decades to come. Today, each country is exploring ways to gain strategic autonomy by becoming self-reliant in key technology areas such as AI, quantum, defense, drones and other dual-use sectors.

This proposal will inevitably encounter resistance from the West and China. China’s rise did not hamper the United States and Europe until cheap Chinese labor turned to technologically sophisticated Western companies. However, once Chinese companies entered areas dominated by Western companies, the West began to resist China’s rise. India will also face similar resistance from China as no incumbent president will leave his seat without a good fight.

The government’s focus on ‘Atmanirbhar Bharat’ reflects a desire to reduce economic dependencies in critical sectors like defence, technology and manufacturing. This vision aligns with the need for India to face an uphill climb, as it prepares to face challenges from those who see its rise as a threat to their hegemony. The need for strategic autonomy and India’s industrial aspirations are closely linked. A strong product design and development mindset will reduce critical dependencies and help companies move up the value chain while changing the structure of the economy from a “services only” economy to an economy of “services and products”.

Now is the time for India to incentivize its workforce to create global products from India. For this, we will have to create a new innovation infrastructure in which laboratories, in companies and academic institutions, will play a central role in our intellectual culture.

Large Indian companies need to create design labs, incubation centers and strong R&D teams. The days when companies imported capital goods from the West and offered services at competitive prices are coming to an end. The modern economy will be an economy driven by intellectual property. We must learn from the success of digital payments, telecommunications, vaccines and trains, and use this model in other emerging areas.

The desire to reduce its dependence on China and align itself with the United States and Japan has led India to make efforts in the semiconductor field and establish a domestic manufacturing industry . However, success depends not only on manufacturing capability, but also on design expertise. The design of chips, systems and subsystems is where the value creation lies. Indian companies need to start creating chip-based products.

The country’s long-term growth depends on policies such as PLI and investments in digital infrastructure, complemented by design innovation and R&D. Government and the private sector must prioritize innovation, with public funding supporting private R&D efforts.

India, poised to become the world’s third largest economy, must prioritize not only growth but also the strategic production of much-needed goods. By leading in key sectors where its exports can influence the global economy, India can secure its influence and strategic autonomy.

The author is Chairman of the EPIC Foundation and MGB (Mission Governing Board), National Quantum Mission.

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