India Inc is not engaged in developing "sustainable and inclusive innovations" as they do not identify with sustainable development or green growth, says a study by industry body CII.
According to the study, India Inc is mainly focused on existing products which leads to complacency and lack of innovation. Moreover, their governance culture, too, does not encourage innovation, leading to the scenario.
"Too much focus on existing products is the key internal barrier to innovation. Besides, senior executives tend to be judgmental and do not encourage new ideas," the study said.
"When companies find their markets threatened by competition they scramble to innovate. The other key barrier to innovation is too much focus on short-term financial performance," it said.
Sustainable development refers to a mode of human development in which resource use aims to meet human needs while ensuring the sustainability of natural systems and the environment, so that these needs can be met not only in the present, but also for generations to come.
According to the study, innovation in India continues to be plagued by quality shortfall in human capital, and less than required investments and infrastructure in research and development activities.
However, tightening environmental legislations in India, demand for demonstration of better environmental footprint by international buyers, business risks arising due to environmental challenges and creation of new markets for green products are the primary reasons for companies to go green, the study said.