Indian innovation on the decline?

from The Financial Express:

the proportion of national resources spent on R&D by India has declined steadily, from a peak of 0.98% in 1988 to 0.66% in 1997, before recovering slightly to 0.8% in 2000. This decline is a matter of grave concern. It threatens to widen the already serious technology gap between India and the world economy. Industry spends only 23% of national R&D expenditure and the bulk comes from public-funded institutions. Hence, the decline may largely be due to the budgetary squeeze. However, even the rate of growth of R&D expenditure in industry has declined in the 1990s.