CII President Mukundan Urges India to Land Foreign Capital for R&D Push

CII President Mukundan Urges India to Land Foreign Capital for R&D Push​

India needs a significant infusion of foreign capital if it aims to elevate its domestic research and development (R&D) spending, according to the Confederation of Indian Industry (CII) President, R. Mukundan. He stressed that the country must pivot its focus from merely signing Free Trade Agreements (FTAs) toward maximizing their utilization.

Mukundan, who is also a managing director at Tata Chemicals Ltd., argued that long-term industrial competitiveness is intrinsically linked to innovation and technology absorption. Without dedicated investment in these areas, Indian industries will struggle to compete globally in the future.

The Imperative of Technology and Foreign Investment​

He pointed out that while the government has introduced robust schemes supporting R&D, the next crucial step involves ensuring these opportunities are fully utilized by the private sector.

Mukundan advocated for greater openness toward technology-led foreign investment, particularly in sectors where local capabilities cannot be immediately developed to a world-class standard. He cited the automotive sector as an example, noting how foreign technology and investment spurred domestic competition rather than displacing existing Indian industry.

The CII President stated that global players should be welcome entrants, provided they commit to injecting capital, establishing operational centers within India, and actively assisting in deepening local industrial capabilities.

Moving From FTA Signing to FTU Maximization​

A key part of his commentary involved pushing the need for a strategic shift from Free Trade Agreement (FTA) signing toward what he termed "Free Trade Utilisation" (FTU).

Mukundan noted that while India demonstrated an ability to respond swiftly to global disruptions during tariff wars, it now requires a deeper connection with international markets. Historically low export utilization under earlier trade deals necessitates immediate attention and aggressive action.

He stressed that India must adopt a proactive country-by-country engagement model. This involves intensifying efforts in overseas marketing and branding. Mukundan firmly stated that "This is not the time to cut back on marketing spends," emphasizing the need for intensive customer outreach globally.

Upholding Quality and R&D Amid Global Pressures​

Mukundan cautioned that Indian industry must never compromise on the standards of quality or the commitment to R&D, even when facing periods of external uncertainty.

His warnings come as the domestic sector faces heightened pressure from a volatile international climate. These pressures include tariff-related complications, geopolitical instability, and rising competition from major manufacturing hubs like China and Vietnam.