India needs $100 billion R&D investment push, says Peak XV Partners chief

Rajan Anandan, Managing Director of Peak XV Partners, has identified India's research and development sector as a significant bottleneck requiring approximately $100 billion in targeted investment to unlock the country's full startup potential.

Anandan emphasized that while India has developed a robust entrepreneurial ecosystem and attracted substantial venture capital flows, the underlying R&D infrastructure remains underdeveloped compared to global standards. This gap constrains the ability of Indian startups to build breakthrough technologies and compete at a global scale, he noted.

Addressing the role of government policy, Anandan highlighted the importance of policy frameworks and dedicated funding mechanisms, including the Research, Development and Innovation Fund, in catalyzing private sector innovation. He stressed that coordinated public and private investment would be essential to address India's R&D deficit.

The venture capital executive outlined Peak XV Partners' investment strategy as focused on identifying opportunities across India's startup landscape while supporting founders building deep-tech and innovation-driven ventures. The firm's approach underscores the growing recognition among institutional investors that sustained R&D capability will be critical for India's competitiveness in emerging technology sectors.

Experts in the startup ecosystem have increasingly flagged India's R&D spending—currently around 0.6-0.7 percent of GDP—as insufficient to support long-term innovation ambitions. Addressing this structural challenge is seen as vital for transforming India from a startup nation into a global innovation hub.