Sanmit Ahuja discusses with Mr. Pradeep Gupta, Chairman and Managing Director of Cybermedia, South Asia’s largest specialty media house, on what is the state of innovation in India.
On the state of Innovation in India
India was never really on the innovation map until recently. Looking back the scenario right up until the early 1990s there was always an East-West divide in terms of where India would source its innovations from. The thinking in India was that its only real contribution to the world was the “zero” [literally].
Companies would import machinery/products and re-engineer those using screwdriver technologies to create a low cost substitute for the Indian market. However in the 1990s the situation took a remarkable turn, so much so that only fifteen years later India is now seen as an innovation hub.
However with the strong economic growth the situation today is much different. The risk taking abilities of companies has increased and so have the levels of rewards.
The new segments not only expand the market size but also provide a whole new context and setting of testing products and services in developing countries. Nations such as India and China are also acting as the test labs for global companies.
By developing products of high quality and standards in these markets global companies are re-defining their price points and are now able to export their products from India to other economies. For instance Tata motors successfully developed the Nano, which is the cheapest car in the world that also has a huge potential for export.
The major opportunity lies in the ability to leverage and exploit multiple platforms such as online, print and digital to distribute content.
The poor infrastructure in the country is also a major impediment and so are some of the policies that aren’t conducive to attracting more private sectors capital.
The biggest impediment however remains the lack of early stage risk-capital. This is where international investors can really make an impact as well as earn a high return on investment.
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