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Investments in R&D, shedding protectionism key to make India global production hub: Rajiv Gauba
May-13-2026

At a time when the world is undergoing structural changes due to geopolitical crisis and tariff wars, the NITI Aayog Member Rajiv Gauba pointed that the emphasis is shifted from pure efficiency to resilience of supply chain and India should be ‘able to replicate the Apple story multiple times over’ as it competes with other countries such as Vietnam, Indonesia and Mexico to become a global production hub. He added that the government will continue with the reform agenda, while industry need to focus on some important issues. 

He stressed on prioritising investment in R&D, pointing the lower gross expenditure on R&D in India. He noted that India’s gross expenditure on R&D has remained stuck at around 0.7% of GDP, it is well below the global average of 2.3% and much less done by countries like South Korea and Israel. Further, 60% of this 0.7% is funded by the government. He also called on the industry to focus on skilling of manpower, saying the government alone cannot do it and the rise of industry 4.0, AI and automation have made workforce skilling a matter of survival.

With the country entering into free trade pacts with other nations, Gauba has exhorted Indian industry to take up the challenge of global competition. He noted that Indian industry needs to shed its instinct for protectionism as these pacts will open vast new markets to Indian exporters at same time opening the Indian for foreign players. He added that the government of India has entered into landmark trade agreements with the UK, EU and New Zealand, many others are on the anvil.

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