‘India can remain an intermediate income country …’: the wealth advisor warns that the services will not evolve
The economic ascent of India can end there earlier than many, not due to the lack of ambition, but a shortage of innovation.
Chakravarthy V, a wealth advisor, sparked a conversation on LinkedIn to an article: “India can remain an intermediate income country in our lives.”
The appellant not pessimism but the “recognition of models”, he compared the trajectory of India to that of several South American nations which jumped early but which compare itself without deep innovation.
“The scaling of an economy based on services without innovation has its limits,” wrote Chakravarthy.
The best companies in India, he said, have succeeded by adapting global technologies – from Telecom to the Web 3.0 – rather than directing in invention. “We have become the distributors, not the disruptors.”
This gap is manifested. While global work moves to markets at a lower cost like Vietnam, the famous IT Edge of India is blunt. The result: underemployment among graduates and a technological sector depends more and more on maintenance rather than creation. “It’s not a failure,” noted Chakravarthy, “it’s friction.”
The data support him. India R&D investment remains low – only 0.6 to 0.7% of GDP, with only 36% from the private sector. On the other hand, China spends more than 2.4%, private companies leading the charge. Countries like Turkey, Thailand, Egypt and Brazil all go beyond India in R & D-GDP ratios.
The United States and Israel, world innovation leaders, spend 3.5% and 5.4% respectively, with a dominant involvement in the private sector.
However, Chakravarthy sees hope. India leads the world to funding, receiving $ 125 billion – more than it attracts foreign direct investments. He highlighted the best students and workers in India during 16 hours and internet access. “The ambition no longer needs a passport,” he said.
However, the forward path rests on the building, not brokerage. “History is not over,” he wrote. “But for the next chapter to be better, we need more manufacturers.”
