According to a new report by Neeti Ayog, India’s growth of becoming a global powerhouse in the automobile industry is being slowed by lack of innovation.
The report further states that this defect was mainly due to insufficient infrastructure in research and development as India’s spending on the region is the lowest in the world, especially when compared to major motor vehicle countries like Germany, Japan and United States.
The report stated, “One of the most important obstacles for India’s growth in the global motor vehicle sector is the lack of innovation, inspired by large -scale insufficient research and development (R&D) infrastructure,” said in the report.
The report stated that “This underworce seriously limits the country’s capacity to compete in emerging technologies such as EVS, autonomous driving and smart mobility solutions.”
While Indian manufacturers are known for their efficiency in the production of low costs, high-length vehicles, the absence of a strong innovation culture is preventing them from advancing the price chain.
According to the report, this deficiency of advanced, differentiated products makes it difficult for Indian brands to stand in competitive global market.
A major concern raised by NITI Aayog is a lack of cooperation between the motor vehicle industry, educational institutions and research bodies. This disconnect is obstructing the flow of ideas and innovation required to develop the next generation solutions.
As a result, Indian firms often rely on imported technologies, increase production costs and reduce the ability to manufacture state -of -the -art vehicles locally. The report highlights India’s gaps in important domains such as Battery Technology, Advanced Driver Assistance System (ADAS), and AI-based manufacturing- all of which are becoming cornestones of the future auto industry.
The report said, “To remain competitive and achieve long -term development, India should significantly increase its R&D spending and create a strong ecosystem that promotes innovation and technological advancement.”
NITI Aayog also said to build a strong innovation ecosystem, which encourages cooperation, supports home -developed research, and enables Indian car manufacturers to live on equivalent with their global counterparts.
