Current Affairs 2025 - Bridging the Gap in Core Technology Development
Explore India's potential in core technology development, challenges hindering its growth, and actionable strategies for boosting R&D, fostering innovation, and achieving self-reliance.
Feb, 2025
•3 min read
Why in News?
India has made significant strides in developing core technologies, yet struggles to translate these innovations into commercial success, posing challenges to self-reliance and global competitiveness.
Introduction
Core technologies form the backbone of innovation, powering economies and transforming societies. Despite India's strong scientific community and breakthroughs like the Raman Effect, a historical disconnect between academia, industry, and government has hindered the commercialization of such advancements. Addressing this gap is critical for India to emerge as a global technology powerhouse and fulfill its aspirations of becoming a developed economy.
What is Core Technology?
Definition and Key Characteristics
- Foundational Nature: Forms the base for advanced applications in industries such as defense, healthcare, and manufacturing.
- Wide Applicability: Drives growth across diverse sectors like education, energy, and telecommunications.
- Strategic Importance: Defines national security, economic independence, and geopolitical influence.
Examples of Core Technologies
- Semiconductors: Essential for electronics and AI.
- Quantum Computing: Revolutionizes processing power for advanced problem-solving.
- Cybersecurity: Safeguards digital infrastructure against threats.
- Green Tech: Renewable energy solutions like solar panels and hydrogen.
- Telecommunications: Enables advanced communication systems like 5G and fiber optics.
Why Investing in Core Technologies is Critical for India
1. Economic Growth and Global Competitiveness
- Drives innovation, creates high-value jobs, and boosts productivity.
- Example: The global AI market is projected to hit $900 billion by 2030, with India targeting a significant share through the National AI Mission.
- PLI Scheme: Aims to position India as a global semiconductor hub.
2. National Security
- Core tech strengthens cybersecurity, AI-driven surveillance, and border management.
- Example: AI-enabled monitoring systems at the LAC enhance real-time threat detection.
- Initiatives like iDEX foster indigenous defense solutions like drones and anti-drone systems.
3. Reducing Import Dependence
- India imports 95% of its semiconductors, risking supply chain vulnerabilities.
- Semicon India Program: Targets self-sufficiency in chip production.
4. Driving Climate Resilience and Sustainability
- Core tech supports climate action goals and renewable energy development.
- Example: AI in agriculture enhances crop monitoring and resource conservation.
5. Boosting Startups and Entrepreneurship
- Programs like Startup India promote core-tech entrepreneurship, creating a robust innovation ecosystem.

Challenges Hindering Core Technology Growth in India
1. Inadequate R&D Investments
- India invests only 0.65% of GDP in R&D, far below global leaders like South Korea (4.8%).
- Insufficient collaboration between academia and industry stifles innovation.
2. Shortage of Skilled Workforce
- Only 51% of graduates are employable, and existing STEM curricula lack alignment with emerging technologies.
- Projected demand for 2.8 million AI specialists by 2030 highlights the skill gap.
3. Dependence on Imports
- Heavy reliance on foreign technologies for semiconductors and batteries limits strategic autonomy.
- The 2020 semiconductor shortage affected industries like automotive, underscoring the need for domestic capacity.
4. Policy and Bureaucratic Hurdles
- Policy inconsistencies and procedural delays discourage investment in core tech.
- Example: Delays in implementing the ₹76,000 crore semiconductor initiative.
5. Weak Academia-Industry Collaboration
- Despite premier institutes like IITs, patent commercialization remains low.
- Example: The US Bayh-Dole Act fosters tech transfer and commercialization, a model India can emulate.

What Measures Can India Take?
1. Boost R&D and Public-Private Collaboration
- Increase R&D spending to 2% of GDP and establish a National Core Technology Fund.
- Integrate programs like Semicon India with academia and industry to bridge commercialization gaps.
2. Develop Cutting-Edge Infrastructure
- Build semiconductor fabs, quantum labs, and AI testbeds.
- Promote tech clusters like the Bangalore Technology Cluster for global investments.
3. Skilling and Talent Development
- Reform STEM curricula to include AI, robotics, and blockchain.
- Partner with global firms for hands-on training under initiatives like Skill India.
4. Encourage Domestic Manufacturing
- Align policies like Atmanirbhar Bharat with high-tech manufacturing initiatives.
- Example: Support lithium-ion battery production to reduce EV reliance on imports.
5. Strengthen IP and Funding Ecosystem
- Simplify patent filing processes and fast-track commercialization.
- Expand funding for deep-tech startups in AI, space tech, and quantum computing.

Conclusion
India's aspirations of becoming a technology-driven developed economy hinge on its ability to bridge the gap between innovation and commercialization. By increasing R&D investments, fostering academia-industry collaboration, and promoting domestic manufacturing, India can unlock its core technology potential. These efforts will not only enhance self-reliance but also position the nation as a global technology leader.



