Op Sindoor: A wake-up call for R&D in industry

India’s R&D revolution: Why industry must catch up post-Operation Sindoor

Just 3 days of Operation Sindoor has elevated the stature of Indian military prowess many-fold, thanks to India’s spectacular advances in defence R&D and new product development.

The foundation for these successes were laid by ISRO, DRDO, numerous government and private sector companies and startups, and indigenous platforms like Tejas, BrahMos, and the Agni missile series, reflect a silent revolution in Indian R&D.

However, this revolution remains largely untouched by India’s industrial behemoths. They seem oblivious to the fact that they are leaving billions of dollars on the table by chasing only the low-margin crumbs of conventional manufacturing and trading.

And the best part? This is where the real money is. If R&D gathers momentum in Indian industry, it could easily propel India into double-digit GDP growth. India has all the necessary ingredients for R&D success; the only ingredients lacking are the right mindset and risk appetite.

Military success: A beacon for Indian R&D

India’s defence sector has demonstrated what focused, mission-oriented R&D can achieve.

ISRO’s missions like Chandrayaan and Mangalyaan, DRDO’s indigenous missile systems, radar, and EW advancements, and now quantum communication satellites are not just national security milestones; they are proof of India’s ability to build world-class technology at a fraction of global costs.

These successes were made possible by brilliant scientists, structured project management, accountability, inter-agency collaboration, and clearly defined national goals.

The military’s ability to set long-term technological missions with dedicated teams and sustained funding offers lessons for the entire Indian R&D ecosystem.

A missed opportunity for industry and academia

Despite being vital stakeholders in national development, the private sector and academia have failed to capitalize on this momentum.[1]

Indian industry remains largely a consumer of imported technologies, with jugaads added on. They consider R&D as a Cost Centre, not a Profit Centre. We have a trading mentality.

India’s overall R&D expenditure remains around 0.7% of GDP, alarmingly low compared to countries like Israel (4.9%), South Korea (4.8%), and even China (2.4%).

Worse, only about 35% of this spending comes from the private sector, compared to over 70% in advanced economies.

Even the limited investment in R&D is not well spent, merely producing worthless papers.

The academia-to-industry pipeline remains broken. Too many engineering institutions are locked in rote learning, with little real-world research or tech transfer.

In contrast, the defence sector has shown that Indian talent, when given a challenge and purpose, can deliver global-quality results. The same spirit must now be channeled into civilian and commercial domains.

Industry can also accelerate its innovation by acquiring or partnering with startups that show promise of commercial success.

The commercialization and accountability gap

One of the biggest failings of Indian R&D is the lack of meaningful commercialization.

It must also be stated that the government and private sector are unwilling to experiment with R&D projects, even on a pilot scale.

So, government labs often stop at prototypes. Promising innovations gather dust due to poor market linkages, the absence of certification mechanisms, field testing opportunities, and a lack of risk capital.

Private companies have often treated R&D as a tick-box activity, for tax breaks or ESG credentials, rather than as a strategic growth driver.

We must shift from a “jugaad” mindset to structured innovation pipelines, with accountability for outcomes, not just activities.

There have also been instances where local innovations were ignored by government/ military officials, either out of ignorance or due to vested interests favoring imports.

For instance, Bharat Forge had developed an indigenous artillery gun as early as 2012 and showcased it in government exhibitions, but was denied even a test opportunity in India by the military establishment. The gun was eventually tested successfully in the US.

Breakthrough came only when the company made a presentation at a forum attended by the late Defence Minister Manohar Parrikar in 2016. Startled by their story, he ordered military trials and changed the rules in four days to induct the gun into Indian defence forces, saving huge amounts in cost and forex.

What industry must learn from military R&D

The defence sector’s model is worth emulating:

1. Mission orientation: Set 5-10 year national and sectoral tech goals.
2. Multi-disciplinary collaboration: Establish R&D cells that blend engineering, marketing, finance, and production.
3. Stakeholder partnerships: Co-develop with startups, academia, and national labs.
4. Mentorship & leadership: Engage retired scientists and defence R&D veterans to instill systems thinking.
5. Invest in IP: Focus not just on filing patents but on converting them into profitable products.

Building a national innovation grid

India must link its R&D assets (labs, universities, startups, industries, and ministries) into a coordinated innovation ecosystem. This could include:

1. National tech missions in sectors like water, clean energy, rural economy, and AI.
2. Innovation parks modeled on Israel’s military-tech corridors.
3. Reverse sabbaticals allow scientists to work in industry and startups.
4. Outcome-based R&D rankings that reward commercialized work.

Services and emerging technologies: Our big opportunity

The military and space successes are there for everyone to see. Now, Indian IT and digital sectors must lead the next R&D wave. Areas ripe for innovation include:

• Defence electronics and semiconductors
• Green hydrogen and battery storage
• Precision agriculture and agri-drones
• Cybersecurity and fintech resilience
• Medical devices and affordable diagnostics
• Software and systems integration (India’s strength in these gives it a global edge, if leveraged with indigenous IP and deep-tech innovation)

The bottom line

India’s military success is more than a defence story; it’s a national innovation blueprint.

It is time to shed the belief that R&D is solely the government’s responsibility.

If India is to become a $10 trillion knowledge-driven economy by 2032, every company, university, and startup must treat R&D as core business, not for altruism, but for profit.

The lab must meet the market. And both must serve the nation.

Operation Sindoor has shown the way. It’s now time for industry and academia to pick up the baton, not just for national pride and global leadership, but for enormous, yet untapped, profits.

The younger generation of the industrialists, typically MBAs from Ivy League foreign universities, should take charge, and take India to the next level of development. We should aim to be a challenger to Israel in R&D. That is where we deserve to belong.

Note:
1. Text in Blue points to additional data on the topic.
2. The views expressed here are those of the author and do not necessarily represent or reflect the views of PGurus.

References:

[1] What Can Government Do To Make Its R&D Pay Back? – Jan 27, 2018, PGurus.com

For all the latest updates, download PGurus App.

The post Op Sindoor: A wake-up call for R&D in industry appeared first on PGurus.