Enabling environment for R&D, startups in India: Nirmala Sitharaman

'India is at an inflection point. The government has consistently focused on developing infrastructure and supporting innovation', the finance minister said.

Dharwad: Union Finance Minister Nirmala Sitharaman said that India’s digital landscape has undergone a massive transformation over the past eight years, creating a strong enabling environment for startups and the Research & Development (R&D) sector. This, she noted, has helped the country retain top talent and harness their potential for national progress.

She was speaking after inaugurating the Dharwad Research and Technology Incubator (dhaRti) and Bionest Incubation Centre at IIT-Dharwad on Tuesday.

“India is at an inflection point. For decades, the nation has invested in quality higher education, producing a pool of skilled professionals from premier institutions. However, limited opportunities in the past forced nearly two generations to seek prospects abroad,” Sitharaman said.

“Over the past seven to eight years, this trend has changed. The government has consistently focused on developing infrastructure and supporting innovation. With significant funding directed toward R&D, opportunities are now being created within the country,” she added.

Sitharaman urged young innovators to prioritise creativity over profitability. “The core business for young innovators should be innovation itself. Profitability will follow in due course, but innovation must come first. The government is committed to providing all necessary support and a favourable ecosystem to nurture such talent,” she said.

On India’s strides in the fintech sector, the Finance Minister said that the country has made a remarkable global impact. “Despite the vast spectrum, India’s adaptability has been tremendous. The Jan Dhan financial inclusion scheme has brought millions into the formal banking system. Today, loans are disbursed in just 59 minutes. The Open Network for Digital Commerce (ONDC) has been a resounding success,” she stated.

Highlighting India’s leadership in digital payments, Sitharaman pointed out that 87% of transactions in the country are digital, compared to the global average of 62%. “India’s fintech ecosystem has laid a robust foundation, and we are now scaling up to meet the needs of the next generation,” she added.

A sum of Rs 5.29 crore from Sitharaman’s MPLADS fund has been sanctioned for the dhaRti incubation centre.

IIT-Dharwad Director Prof Venkappayya Desai briefed about the institute’s initiatives and ongoing projects.