Low-Level Technology: Growth Obstacle Author :  CA  A. K. Jain Technology is one of the most powerful engines of modern economic growth. It enhances productivity, improves efficiency, reduces costs, and enables economies to compete in global markets. For India, however, low levels of technology adoption across key sectors have emerged as a major obstacle to sustained and inclusive growth. Despite pockets of excellence in information technology and digital services, large parts of the economy continue to rely on outdated methods, limiting productivity and restraining India’s development potential. Historically, India’s technological progress has been uneven. In the early decades after independence, the country focused on self-reliance and import substitution, which encouraged domestic production but often discouraged competition and innovation. Limited exposure to global technology and weak incentives for research and development resulted in slow technological diffusion. Economic liberalization in the 1990s improved access to global markets and technology, yet adoption remained concentrated in select sectors, leaving manufacturing, agriculture, and public infrastructure technologically lagging. One of the most visible impacts of low-level technology is poor productivity. In manufacturing, outdated machinery, limited automation, and low investment in research and development have prevented Indian firms from achieving economies of scale and global competitiveness. As a result, India’s manufacturing sector has struggled to absorb surplus labor and generate high-quality employment. In contrast, countries that embraced advanced manufacturing technologies were able to increase output while reducing costs, reinforcing their position in global value chains. Agriculture, which still employs a large share of India’s workforce, remains particularly affected by technological stagnation. Low mechanization, inefficient irrigation methods, limited use of precision farming, and inadequate post-harvest technologies contribute to low yields and high wastage. Farmers often lack access to modern inputs, real-time information, and scientific practices, keeping incomes low and reinforcing rural distress. Without technological modernization, agriculture continues to act as a drag rather than a driver of economic growth. Infrastructure development also suffers from slow technology adoption. Construction projects frequently rely on conventional methods, resulting in delays, cost overruns, and quality issues. Limited use of advanced project management tools, modern materials, and digital monitoring systems reduces efficiency and transparency. In sectors such as transport, energy, and urban services, outdated technology leads to higher losses, safety risks, and environmental damage, further eroding economic efficiency. The gap between India’s digital success and its broader technological landscape highlights a structural imbalance. While India has emerged as a global leader in software services, fintech, and digital platforms, these gains have not sufficiently translated into technological upgrading across the real economy. Small and medium enterprises, which form the backbone of employment, often lack access to capital, skills, and incentives needed to adopt modern technologies. This perpetuates low productivity and limits their ability to scale. Low-level technology adoption also weakens India’s ability to respond to global competition and economic shocks. In a world increasingly driven by automation, artificial intelligence, and advanced manufacturing, economies that fail to upgrade risk falling behind. Dependence on low-value-added activities exposes India to volatile markets and shrinking margins. Moreover, technological backwardness constrains innovation, reducing the economy’s capacity to move up the value chain. The causes of this technological lag are deeply rooted. Insufficient investment in research and development, weak industry–academia collaboration, and gaps in skill development limit innovation and diffusion. Regulatory uncertainty and fragmented policy implementation discourage long-term technological investment. Additionally, risk-averse business culture and limited access to affordable finance prevent firms from experimenting with new technologies. Overcoming this growth obstacle requires a coordinated and forward-looking strategy. Investment in research and development must increase, with greater private sector participation and stronger linkages between universities, research institutions, and industry. Policies should incentivize technology adoption among small and medium enterprises through financial support, tax benefits, and technical assistance. Modernizing vocational and technical education is essential to ensure the workforce can effectively use new technologies. Public infrastructure projects should act as catalysts for technological upgrading by mandating modern construction methods, digital monitoring, and sustainability standards. In agriculture, promoting mechanization, precision farming, and post-harvest technologies can significantly raise productivity and incomes. Equally important is ensuring policy stability and ease of doing business, which encourage firms to invest confidently in long-term technological advancement. In conclusion, low-level technology remains a critical obstacle to India’s economic growth not because of a lack of talent or potential, but due to uneven adoption and systemic constraints. Bridging this technological gap is essential for boosting productivity, generating employment, and enhancing global competitiveness. By embracing innovation across all sectors, India can transform technology from a bottleneck into a powerful engine of sustainable and inclusive growth. ---------------------------------------------------- Author of this article, C.A. Anil K. Jain( caindia@hotmail.com ) is a highly acclaimed Chartered Accountant with over four decades of professional experience. He is widely recognized for his expertise in financial and asset planning, taxation, international investments, and business growth strategies. Beyond advisory work. He actively contributes to national economic discourse through policy representations to the Government of India, frequent appearances on television and radio, and extensive writing. He is also the author of the acclaimed books Bharat: The Development Dilemma and River Water Recharge Wells, reflecting his commitment to India’s economic development and sustainable water solutions.