India is primarily a services economy and that is where it holds the greatest promise for innovation – not just in terms of creation, discovery or invention but in creating processes, business models, cultural and societal value adds.
It is a country well positioned to ride the innovation wave with its clever and innovative workforce. He was quoting the latest study, “Booz and Hamilton” annual study on innovation and R&D on the subject.
Speaking at the concluding session, Shri Kamal Nath said: “As an innovating nation, India has come a long way. Global products and services are increasingly bearing “Made in India” or “Served from India” stamp.
For this to happen on a sustained basis, we need to encourage more public-private partnerships between government research bodies and private companies.
There is also a need to create a more collaborative environment within industries, and I am glad to report that this has started happening in the biotech and auto sector, he added.
The Minister said that India and EU have a lot to discover together. The EU is in a strong position to drive sustainable innovation; currently 8 of the world's top 20 R&D spenders are of European origin.
Many of these companies run very successful businesses in India. “I would call on them to look at the grassroots sector more carefully and search for sources of sustainable innovation – they hold potential for generating the growth markets of the future.
India-EU Business Summits have established themselves as important and effective multi-party platform for not only exchange of information on opportunities but also feedback on improving business climate. Efforts of industry apex organisations of both the sides are appreciated in this context.
The cumulative FDI inflows from EU is US $ 11.8 billion (23.77%), excluding amount of acquisition of existing shares (upto 1999), RBI's-NRI schemes, stock swapped and advance pending for issue of shares.
Top sectors attracting FDI inflows (from January 2000 to June 2007) from EU are services sector (financial and non-financial) – 36%; computer software and hardware – 5.49%; automobile industry – 5.33%; chemicals (other than fertilisers) – 4.93%; and electronics – 3.83%.
Press Information Bureau Government of India
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