India’s Innovation Breakthrough: 5 Powerful Reasons It Must Become a Product Nation Now!

India is at a turning point in its innovation journey, and according to Principal Scientific Adviser Ajay Kumar Sood, the country must evolve into a true “product nation.” While India has a strong base of skilled engineers, especially in semiconductor design, much of the work is still outsourced for global companies, following their specifications. Sood emphasizes the need for homegrown innovation—where Indian companies design and develop products based on their own ideas.

He warns that focusing only on manufacturing will trap the country in a low-profit zone, while real value lies in intellectual property and product ownership. Encouragingly, deep tech sectors like quantum computing and AI are gaining momentum, supported by government missions and startup funding. Successful models like the space programme, defence’s iDEX, and biotech’s BIRAC show what’s possible when innovation meets structured support. However, unlike defence and space, many sectors still lack clear product demand, which needs to be built alongside capability.

The focus now must shift to nurturing a culture of original product creation, ensuring India captures more value across the entire tech value chain.

India’s Innovation Breakthrough: 5 Powerful Reasons It Must Become a Product Nation Now!

India must transition from merely designing products for global corporations to creating its own innovative solutions from the ground up. This vision, articulated by Ajay Kumar Sood, the Principal Scientific Adviser to the Indian government, underscores the need for the country to harness its intellectual prowess and drive self-reliant innovation.

Moving Beyond Outsourced Design

While India is celebrated for its skilled designers—particularly in semiconductor technology, where Indians comprise 20% of the world’s chip designers—most of this expertise is utilized to fulfill specifications set by foreign companies. Sood argues that true leadership in innovation will only emerge when India begins developing products rooted in its own ideas. “We have a talented design workforce, but they often execute concepts created elsewhere. To become a ‘product nation’, we must innovate based on our vision and needs,” he emphasized.

Avoiding the Middle-Income Trap

Sood, who also heads the Prime Minister’s Science, Technology, and Innovation Advisory Council, cautioned against over-reliance on manufacturing. While manufacturing is vital, he stressed that long-term growth hinges on capturing value across the entire product lifecycle—research, design, branding, and marketing. Sticking solely to assembly-line roles, he warned, could leave India vulnerable to the “middle-income trap,” where economic progress stalls as higher-value opportunities are captured by other nations.

Cultivating a Homegrown Innovation Culture

The call to action is clear: India must shift from being a “service provider” to a “creator.” Sood highlighted the potential of tech hubs like Bengaluru, home to world-class engineers, to drive this change. He applauded companies such as Bharat Forge, Tata, and Tech Mahindra for beginning to develop proprietary technologies, but stressed the need for broader industry participation. “Why should we build only for others? Our talent deserves to lead global innovation,” he remarked, advocating for more Indian-owned global capability centers.

Deep Tech Startups Gaining Momentum

Sood pointed to emerging sectors like quantum technology and artificial intelligence (AI) as critical frontiers. Initiatives such as the National Quantum Mission have already funded eight startups in quantum computing, signaling progress in cutting-edge fields. Similarly, the government’s AI mission, spearheaded by the Ministry of Electronics and IT, aims to accelerate startup growth through funding and policy support. “There’s a policy-level push to nurture deep tech ventures. Our focus now is to create ecosystems where they can thrive,” he added.

Learning from India’s Space Success

India’s space program, renowned for achieving high-tech milestones at low costs, serves as a blueprint for innovation. Sood noted that the public sector’s accomplishments have now inspired private companies to enter the space industry. This public-private synergy, he believes, can be replicated in other sectors. For instance, the defense sector’s iDEX program and BIRAC in biotechnology have spurred startup activity by offering grants and mentorship.

The Road Ahead: Building Demand and Clarity

However, challenges remain. In sectors like electronics and biotechnology, Sood highlighted the need to not only innovate but also cultivate market demand. Unlike defense or space—where requirements are well-defined—companies in emerging fields must anticipate future needs and shape consumer demand. “The real test lies in aligning innovation with market realities. We need to strategically define what products India will pioneer and then create ecosystems to support them,” he explained.

Final Thoughts

For India to emerge as a global innovation leader, a cultural shift is essential—one that prioritizes original thinking, risk-taking, and long-term investment in research. Government initiatives are laying the groundwork, but success will depend on collaboration between policymakers, industries, and academia. By fostering homegrown talent, supporting startups, and learning from past successes, India can transform its “design-for-others” reputation into a “made-by-India” legacy. As Sood concluded, “The journey to becoming a product nation starts with believing in our own ideas—and relentlessly pursuing them.”