India’s financial landscape is evolving, but its focus on research and development (R&D) seems to lag behind. Rajiv Memani, CEO and Chairman of EY India, raised concerns about this at the News18 Rising Bharat Summit. He pointed out that many companies hesitate to invest in long-term research. Instead, there’s a strong emphasis on quick profits.
“Investing a billion dollars in R&D often sends a company’s stock prices down,” Memani noted. Meanwhile, short-term gains, like licensing products for $400 million, tend to boost stock values. This signals a troubling trend: a rush toward immediate returns rather than sustainable growth.
Memani suggests that India must change this mindset. For long-term success, the country needs to invest significantly in R&D. He emphasized that with a lot of ownership concentrated in India, these investments could lead to greater competitiveness in the market.
Another critical point Memani made was about artificial intelligence (AI). He sees it as a game-changer for Indian businesses. AI isn’t just a passing trend; it has the potential to reshape entire industries. Memani believes India has a unique edge here because successful AI implementation requires widespread adoption and a significant workforce.
Recent studies support this view. According to a 2022 report from McKinsey, companies that invest in AI and R&D see a 20-30% increase in operational efficiency. This aligns with Memani’s assertion that India needs to prioritize such investments to drive growth sustainably.
As the market continues to evolve, it will be fascinating to see if Indian businesses can shift their focus from short-term gains to long-term innovation. This shift could ultimately redefine the country’s economic landscape.
For more insights on the importance of R&D and the future of AI in India, you can check McKinsey’s report on AI implementation.
Source link
R and D in India, financialisation of Indian economy, corporate competitiveness India, Indian industry innovation, capital markets India, artificial intelligence India, long-term investment India, building competitive advantage India
