In a statement, industry body Ficci asked government to stick to its commitment for a steady increase in budget outlay for research and development (R&D) and double the current investments over next 5-8 years.
The chamber also suggested the government to create an aggressive policy environment for boosting private sector investment in R&D.
The statement pointed out that India's spending on R&D is less than the current average expenditure of China, South Korea and most Western countries. India's private sector investment in R&D is less than 25 per cent of overall spend.
The industry body sought adequate tax-breaks and a fast-track patenting facility for breakthrough innovations. These measures should supplement the current R&D offset credit policy for industry, Ficci said.
To enable public sector scientists to file patents, create new enterprises and share financial returns of their inventions, government must introduce appropriate legislation, Ficci said.
At present, there is considerable lack of industry- academia-public lab linkage in the R&D ecosystem, leading to low competitiveness, it said.