New Delhi, September 22 (Daily Kiran) : Central Finance Minister Nirmala Sitharaman urged the Indian industry on Tuesday to prioritize the creation of innovative, robust, and globally competitive companies over merely expanding business size. Speaking at an event organized by the All India Management Association (AIMA), she emphasized that the next phase of India’s development must be quality-driven. For this, the corporate sector needs to increase investment in research and development (R&D).
Sitharaman recommended that companies boost their R&D spending, whether independently or in partnership with educational institutions. This approach would foster innovation, enhance products, and generate more intellectual property (IP) within India.
“Our ambition should not be limited to ‘Made in India’; it should evolve into ‘Imagined in India,’ where products are not only manufactured here but also conceived, designed, and technologically developed before reaching global markets,” she stated.
Currently, India’s gross expenditure on R&D (GERD) stands at only 0.83% of GDP, significantly lower than the OECD average of 2.7%, China’s 2.6%, and the United States’ 3.5%. Sitharaman pointed out that the private sector’s contribution to R&D in India is merely 36%, while in developed economies, it exceeds 70%.
As India moves toward the vision of a ‘Developed India by 2047,’ the success of Indian management will be assessed based on the number of quality companies and institutions developed today.
She also emphasized the need to make management education more practical. Short, useful courses should be created for startup founders and early employees, covering topics such as recruitment, delegation of responsibilities, financial discipline, customer management, compliance, and organizational structure.
Sitharaman called for special programs for family-owned businesses, highlighting the importance of training in succession planning, corporate governance, professional management, dispute resolution, and the division of responsibilities.
Moreover, she advised companies not to limit their product development to urban and high-income consumers. The true consumption base in India comprises millions of families linked to agriculture, rural construction, transportation, and the unorganized sector.
“If Corporate India focuses solely on urban premium consumers, the structural strength of growth may weaken,” she warned.
Highlighting the importance of corporate governance, Sitharaman urged the industry to maintain constructive dialogue with the government and regulators. She advocated for resolving disputes through negotiation and consultation rather than allowing them to escalate into legal conflicts.
Businesses should adopt a culture of transparency, predictability, and communication, as dissent in a mature economy should not equate to confrontation.
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