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India Lacks Innovations In The Automobile Sector Needs To Hike Substantial Investments In Randd Niti Aayog
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Asiya Siddiqui

Published on 08:43 PM, 22 Apr 2025 3 min

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India lacks innovations in the automobile sector, needs to hike substantial investments in R&D: NITI Aayog

How India Can Rev Up Its Automobile Innovation. Let’s check this out.

India’s future in the automobile world is turning more towards electric vehicles rather than running on CNGs or petrol, but at a slow pace. While places like the US, Germany, and Japan are speeding toward it, India’s stuck at the starting line. Why? Not enough cash and effort are going into research and development (R&D).

Why Innovation is a Big Deal

Innovation is like the turbo boost for cars. It’s all about cooking up fresh ideas—think electric vehicles (EVs), self-driving tech, or super-safe systems. These upgrades cut pollution, save lives, and spark new jobs. For India, with its crazy traffic and growing cities, this stuff could be a game-changer.

But here’s the catch: India’s not keeping up. The NITI Aayog, a big government think tank, dropped a truth bomb: "India’s falling behind in the global auto race because we’re short on innovation, thanks to weak R&D."

R&D: The Secret Sauce

R&D is where the magic happens. It’s the lab where wild ideas turn into real stuff—like a new EV battery or a smarter engine. The problem is, India’s not spending enough. Countries like Germany pump 3-4% of their GDP into R&D, while India’s chilling at under 1%. That’s a huge gap!

Without solid R&D, Indian car makers are stuck making basic, cheap rides. They’re missing out on the fancy, high-tech stuff that sells big worldwide.

What Happens If We Don’t Step Up?

If India doesn’t innovate, it’s trouble. Our car brands can’t compete with the global big shots. Plus, we end up buying tech from other countries, which costs a ton and keeps us dependent.

For example, the world’s going nuts for EVs—sales hit 14 million in 2023 alone—but India’s still hooked on old-school gas engines. We’re risking getting left behind in a $300 billion EV market!

How India Can Hit the Gas on Innovation

The NITI Aayog’s got a plan to fix this mess. Here’s the rundown:

  1. Pour More Money into R&D: India needs to crank up the cash flow—think government grants and tax perks for companies that dig into research.

  2. Build Awesome Labs: We need cutting-edge spots where brainiacs can test ideas—modern labs, testing tracks, the works.

  3. Team Up: Get car companies, universities, and researchers to join forces. Sharing brains and tools can speed things up.

  4. Make Our Own Tech: Why buy from abroad? India could whip up its own EV batteries or self-driving systems and own the game.

India’s Got Some Cool Strengths

India’s not starting from zero. We’re already a rockstar at making auto parts—34% of our stuff goes to North America and Europe. That’s a solid base to build on. Plus, we’re super close to hot markets like Africa and Southeast Asia, where car part demand is spiking—exports there jumped 15% last year!

The Road to the Top

India could rule the auto world, but we’ve got to move fast. Pump up R&D, team up, and use what we’re already good at. It’s not a cakewalk, but with the right moves, India can zoom from the back of the pack to the front.

Think about it: more EVs on our roads could cut India’s 2.5 million tons of car-related CO2 emissions yearly. That’s a win for the planet and our wallets!

Well, the future’s calling is packed with wild car tech. India has the talent and the hustle to lead the charge—we just need to flip the switch on innovation. It's time to rev up and roll!

Also Read:

  1. Porsche Macan petrol variants discontinued in India, last stocks available with dealers

  2. Volkswagen Golf GTI: The hot-hatch enthusiast's dream ride arrives in India soon. Here's what it packs

  3. No satellite-based tolling system from May 1, FASTags to continue: MoRTH

Asiya Siddiqui

Content Writer

An aspiring engineer with a passionate knack for writing and cars. A passion that goes beyond the profession. Eager to innovate and share essential automotive knowledge, from mine to yours.

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