Innovation thrives under competition – Suman Bery’s wake-up call to Indian companies

Suman Bery, Vice Chairperson of NITI Aayog, had a clear message to Indian companies: innovation flourishes when businesses face competitive pressure. At the EY-CNBC-TV18 AI Forward Conclave, Bery cautioned against seeking protectionist policies, warning that such measures could stifle creativity and lead to complacency.

Competition Drives Innovation

Bery drew a critical link between competition and innovation, stating, “People innovate when they are under competitive pressure.” He explained that businesses perform at their best when they are pushed to adapt, evolve, and create value in response to market demands.

Drawing from global examples, Bery pointed out that innovation in advanced economies often stems from companies being forced to respond to competition. He said that this principle applies equally to Indian businesses, which must strive to stay ahead in an increasingly globalised and technology-driven world.

The Danger of Protectionism

Bery was candid in his criticism of protectionist policies, which some Indian companies have sought as a shield against global competition. “A familiar complaint from our corporate sector is, ‘It’s an unfair world out there. China is subsidising whatever—we can’t compete; give us protection,’” he said.

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However, he warned that such an approach is counterproductive. “…that’s a recipe for companies getting lazy,” Bery said, arguing that relying on protectionism not only hampers innovation but also weakens the long-term competitiveness of businesses.

Lessons from the Global Stage

Bery underscored the importance of learning from global practices, where governments often play a role in fostering innovation through strategic investments rather than protectionism. He cited the example of the United States, where entities like DARPA (Defense Advanced Research Projects Agency) have driven groundbreaking innovations by encouraging collaboration between universities, research institutions, and the private sector.

A Call to Action for Indian Businesses

For Indian companies, Bery’s message was clear: embrace competition as an opportunity to innovate and grow. He urged businesses to invest in research and development, adopt new technologies, and focus on creating value for both domestic and global markets.

“[The] government’s done what it could with tax cuts, corporate tax cuts. The market has been skyrocketing. The last time I looked, personal wealth was not in the dumps, but the research isn’t happening,” Bery said, pointing to the need for a greater focus on innovation-driven growth.

What Lies Ahead

As India positions itself as a global economic powerhouse, Bery’s remarks serve as a timely reminder that innovation cannot thrive in a vacuum. By embracing competition and rejecting protectionism, Indian companies can unlock their full potential and contribute to the country’s journey towards Viksit Bharat and becoming a leader in the global economy.

“People innovate when they are under competitive pressure,” Bery reiterated. “Seeking protection is a recipe for companies getting lazy. The choice is clear—compete, innovate, and succeed.”

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