India, June 1 -- Classical growth models treated technology as an exogenous factor that drives development. However, modern growth theory suggests technology is an endogenous factor, a product of investments in education, innovation, and ideas. This has important implications for India's growth story. However, we have not yet fully leveraged our innovation potential.

India's research and development (R&D) expenditure, as a percentage of gross domestic product (GDP), remains around 0.7% - in comparison, it is 5.2% for South Korea, 2.6% for China, and 3.6% for the US. To bridge this gap, the Rs.1 lakh crore R&D fund announced in July 2024 and the fund of funds for deep tech announced in February 2025 must be operationalised at the earliest...