India has large potential for research and development due to its large education system and technical workforce, but currently spends a low percentage of GDP on R&D compared to other countries. The government recognizes the importance of increasing innovation and has implemented policies to strengthen intellectual property rights and attract foreign investment to boost R&D. However, India faces challenges such as lack of dynamism in government research and quality issues in higher education that have limited its innovation output so far. Reforms are needed to improve coordination across different organizations and prioritize research areas in order to realize India's potential as a global innovation hub.