After earning accolades for expertise in IT and service sector, India is fast making its mark as an innovator of global stature in high – tech products. However the large scale economic disparity and to some extent an asymmetrical growth appears to be the biggest stumbling block in India’s ability to utilize its full potential, says the recent world bank report.
“Liberal economic policies, transparency and relaxed import laws will provide better opportunities for small industries to grow bigger which will further enhance the investments in R&D. Roughly 90% of India’s work force is employed in the informal sector. Agriculture still accounts for 60% employment. Ironically average enterprise productivity in finance, insurance and real estate, which accounts for only 1.3% employment, is about 23 times of that in agriculture.
It’s undoubtedly difficult to start a new business venture in India. Compared to 92% firms facilitating in- service training in China and 42% in Republic of Korea, only 16% of Indian manufacturing firms offer in- service training to their employees. Apart from enhancing the skills of their employees, private firms also need to spend more on innovation.
Of the top 50 applicants for patents in India, between 1995 and 2005, 44 were foreign firms. Out of the six Indian applications only 2 were filed by private firms. Thus India needs to work towards reducing this economic disparity.