New Delhi, Oct. 30 -- The technological arms race between the US and China has forced Indian policymakers to finally confront India's limited deep-tech abilities.

Policymakers acknowledge that deep-tech innovation in India requires significant support from the Indian state. The policy focus on the deep-tech sector is welcome. But we need to ask if the current model of subsidizing select startups is the right way to develop deep-tech capabilities.

Historically, India has spent very little on research and development (R&D). Gross spending on R&D has always been below 1% of gross domestic product (GDP), compared to about 3% in China and above 5% in Korea. Most of that expenditure comes from the Indian state.

In 2023, the government set up...