Why Do Companies Offer Higher Salaries to BTech and MTech Graduates Than to PhDs in India?

Despite India's increasing focus on innovation and research, a discrepancy in salary and recognition persists between BTech, MTech, and PhD graduates. This article explores why companies offer higher salaries to BTech and MTech graduates but often fail to extend the same opportunities to PhDs, highlighting the isolated nature of research in India and the international contrast.

Isolated vs. Demand-Oriented Research

The key difference lies in the nature of research conducted within Indian institutions versus that carried out in developed countries. In Europe, especially in countries like Germany, research is demand-oriented, driven by industry requirements and commercialization needs. Companies such as BMW and Bosch collaborate closely with Technical Universities (TUs) to integrate their research and development (RD) teams with PhD students. This collaboration ensures that the research topics are pertinent to industry demands, and the resultant innovations are commercialized swiftly. Consequently, when PhD students complete their degrees, many are directly absorbed into the companies, often assuming roles as RD-Managers or New Product Development (NPD)-Managers.

Short-Sightedness and Profit Orientation in Indian Companies

In contrast, many Indian companies demonstrate a short-term profit-driven mindset, often neglecting the importance of fostering a robust RD department. Consequently, they hire BTech and MTech graduates, providing them with decent salaries but limiting their individual potential for growth. PhD candidates, on the other hand, bring extensive specialized knowledge that is not easily transferable to industry practices. Due to the difficulty in aligning this knowledge with short-term business goals, Indian companies are often hesitant to employ PhD candidates, even those who have published research papers, developed products, or filed patents.

The Current Scenario and the Need for Change

The current scenario in Indian companies fosters a narrow vision that prioritizes immediate returns over long-term innovation. Organizations like ISRO and DRDO have recognized the value of collaboration with universities to bridge this gap, but the private sector remains largely oblivious to the potential of its researchers. To address this issue, there is a pressing need for a paradigm shift from a business-oriented approach to a technology-oriented one. This transition can be facilitated through increased Foreign Direct Investment (FDI) and campaigns like ‘Make in India’, which encourage companies to enhance their RD capabilities.

Collaboration for a Better Future

The solution lies in a coherent and collaborative approach that involves both the academia and the private sector. By working together, universities and companies can tap into the vast potential of Indian researchers. This collaboration not only accelerates the commercialization of research but also fosters innovation, ensuring that the fruits of research are adequately utilized in the market.

In conclusion, addressing the gap between BTech, MTech, and PhD graduates requires a multifaceted approach that includes enhancing company understanding of the value of research, promoting public-private partnerships, and fostering a culture that values long-term investment in innovation. Only through such harmony can India truly harness its research potential for sustained growth and development.