Innovation Ecosystem in India

India trails in critical tech, particularly semiconductor tech

Why in the News?

A new global index called the Critical and Emerging Technologies Index ranks 25 countries based on their strength in five key areas: AI, biotechnology, semiconductors, space, and quantum tech. India scored 15.2 overall, falling far behind top countries like the U.S., China, and those in Europe.

What is the Critical and Emerging Technologies Index?

  • A global index launched to evaluate how 25 countries perform across five technology sectors: AI, biotechnology, semiconductors, space, and quantum.
  • Developed using public and commercial data, allowing policymakers to compare relative strengths and weaknesses.
  • Weighting of sectors: Semiconductors (35%), AI (25%), Biotechnology (20%), Space (15%), Quantum (5%), based on geopolitical relevance and dual-use potential.

How does it assess countries’ performance?

  • Sector-wise Evaluation Using Pillars: Each of the five sectors—AI, biotechnology, semiconductors, space, and quantum—is assessed using multiple weighted pillars such as funding, talent, core technologies, infrastructure, and global influence.
  • Weighted Scoring System: The index assigns strategic weights to each sector (e.g., semiconductors 35%, AI 25%) based on geopolitical relevance and dual-use potential, resulting in an overall score that reflects each country’s relative technological strength.

Why is India behind the top countries in key tech sectors?

  • Lower Investments and Talent Gaps: India lacks deep investments and a large skilled workforce in core tech sectors like semiconductors and quantum computing. Eg: The U.S. leads in AI and chip design due to massive R&D funding and strong academia-industry collaboration.
  • Fragmented Innovation Ecosystem: Unlike the U.S.’s decentralized model or China’s state-led coordination, India’s innovation lacks synergy across government, industry, and academia. Eg: India ranks below France and far behind China in biotech and space sectors despite policy efforts.
  • Limited Manufacturing and Infrastructure: India has weak chip fabrication and limited quantum labs or space tech facilities compared to countries like Taiwan (chips) or Russia (space assets). Eg: India ranks 7th in space while Russia is 3rd due to superior defence assets and launch capabilities.

Which factors drive U.S. dominance in tech?

  • Massive Investments and Funding: The U.S. leads due to consistent and large-scale public and private investments in emerging technologies. Eg: Heavy funding in AI and semiconductors ensures global leadership in research and innovation.
  • Strong Talent and Research Ecosystem: A world-class workforce, top universities, and a decentralized innovation network strengthen its technological base. Eg: Institutions like MIT and Stanford produce cutting-edge research in quantum and biotech.
  • Strategic Global Partnerships: The U.S. collaborates closely with tech leaders like Japan, South Korea, and Europe, especially in semiconductorsand quantum. Eg: Joint ventures in chip production enhance U.S. resilience and global influence.

How do China and Europe compare in tech strengths?

Aspect China Europe Example
Biotechnology Strong growth due to state-led investments and large talent pool Leading in vaccine R&D, genetic engineering, and pharma Eg: China’s focus on biotech parks; Europe’s mRNA vaccine leadership
Quantum Technology Rapidly progressing with centralised planning and funding Strong academic research and early quantum computing breakthrough Eg: China’s Jiuzhang quantum computer; Europe’s QuTech (Netherlands)
Semiconductors Lags behind due to foreign tech dependency and tool import barriers Moderate progress; behind East Asia and U.S. in manufacturing Eg: China’s reliance on ASML’s lithography; Europe’s low chip fab capacity
Artificial Intelligence (AI) Excels in data volume and AI applications, but weaker algorithms Strong in ethical AI, policy, and funding, but lags behind in deployment Eg: China’s use of AI in facial recognition; Europe’s AI Act regulation
Space Technology Advanced programs with state backing; lacks international openness Lower funding and limited military use; some success in space science Eg: China’s Chang’e missions; Europe’s ESA satellite projects

 

Why is the above comparison between Europe and China important for India? 

  • Strategic Benchmarking for Policy and Investment: It helps India identify strength areas (e.g., biotech in Europe, quantum in China) and gaps (e.g., semiconductors) to shape its own technology roadmap, investments, and global collaborations. Eg: India can learn from China’s scale-driven investments in biotech and Europe’s regulatory models in AI for better domestic implementation.
  • Opportunity for Strategic Alliances: Understanding their strengths enables India to form targeted partnerships for tech transfer, research, and market access in complementary areas. Eg: India–EU cooperation in pharmaceutical innovation, or India–China dialogue in quantum research norms can enhance India’s tech footprint.

Way forward: 

  • Enhance Strategic Investments in Core Tech Sectors: India should increase targeted funding and incentives in critical areas like semiconductors, AI, and biotech, with a focus on R&D, talent development, and infrastructure. Eg: Expanding PLI schemes to include quantum and chip design startups.
  • Build Global Tech Partnerships and Talent Pipelines: Proactively engage with Europe, Japan, South Korea, and the U.S. for joint research, mutual recognition of standards, and tech collaboration. Eg: Set up Indo-EU research hubs for biotechnology and semiconductor fabrication units with Japan.

Mains PYQ:

[UPSC 2022] Elucidate the relationship between globalization and new technology in a world of scarce resources, with special reference to India.

Linkage: India “lags significantly” in critical technology sectors like semiconductors, which require substantial resources (e.g., advanced manufacturing capabilities, specialized raw materials, skilled talent, significant funding), this question implicitly probes India’s challenges and trailing position in the global technological landscape.

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