Governance
Boosting R&D for India's Growth
- 10 Mar 2025
- 8 min read
For Prelims: Science, Technology, Engineering, and Mathematics (STEM), Global Innovation Index 2024, Deep-tech Startups, Quantum Computing, Semiconductors, Anusandhan National Research Foundation (ANRF), DRDO, ISRO, BARC.
For Mains: Challenges associated with India’s R&D ecosystem and ways to address them.
Why in News?
India is the 2nd-largest producer of Science, technology, engineering, and mathematics (STEM) graduates after China. Despite this achievement, India ranks 39th on the Global Innovation Index 2024, significantly behind China (11th) showcasing low Research and development (R&D) funding in India.
What are Key Highlights of the R&D Ecosystem?
- R&D Funding Status: India spent only 0.65% of its GDP on R&D in 2022, China spent 2.43%, and Brazil 1.15%.
- Need to Prioritize R&D:
- Economic Growth: R&D is crucial for India to compete globally and shed its lower-middle-income status, and achieve its productivity potential.
- Industrial Development: Key sectors such as pharma, chemicals, and automotive require technological advancement to compete with developed nations and emerging economies.
- Also, R&D is needed for deep-tech startups involved in quantum computing, biotechnology, robotics, and nanotechnology.
- Labour-Intensive Sectors: Rising labor costs demand innovation like automated assembly lines, integration of AI & digital tools for productivity, value, and exports.
- Global R&D Scenario:
- South Korea: In 1970, South Korea was poor but grew rapidly over two decades, increasing R&D spending from 0.4% to 2.5% of GDP.
- Between 1975 and 2005, it became a developed nation, and R&D investment by its corporate sector rose 800 times.
- China: R&D spending rose from 0.6% of GDP in the late 1990s to 2.4% currently, coinciding with its best growth years.
- South Korea: In 1970, South Korea was poor but grew rapidly over two decades, increasing R&D spending from 0.4% to 2.5% of GDP.
What are the Challenges in India’s R&D Ecosystem?
- Low Investment: India’s R&D spending is much lower than that of advanced economies such as the US (3.46%), Japan (3.30%), Israel (5.56), and South Korea (4.93).
- Government-Centric R&D: Indian R&D still relies heavily on government funding and institutions. e.g., In 2020–21, the Private Sector Industry contributed only 36.4% of R&D funding.
- Weak Academia-Industry Link: Indian research institutions and industries operate in silos, reducing innovation potential, and interdisciplinary research.
- e.g., Stanford University played a central role in the early development of Silicon Valley but such coordination lacks in India.
- Lack of Diversification: India’s R&D efforts have historically focused on a few priority sectors, particularly defense and space and ignored industrial R&D. e.g., more focus on missiles (Agni, BrahMos), at the cost of semiconductors.
- Indian industries prefer importing technology (risk averse), while startups and firms focus on IT and e-commerce over deep-tech innovation.
- Hurdles in Technology Transfer: Research conducted by DRDO, ISRO, and BARC often does not translate into commercial products due to bureaucratic hurdles.
What are India’s initiatives Related to R&D?
What Reforms Can Strengthen India’s R&D Ecosystem?
- Increased R&D Investment: India should increase R&D spending over the next decade, with a significant share coming from the private sector.
- Utilise Anusandhan National Research Foundation (ANRF) by encouraging private sector and philanthropic investments in research.
- Rs 1 lakh crore innovation fund announced in the union budget 2025–26 should be disbursed within 3–5 years to boost deep-tech R&D..
- University-Led Research Model: Indian Higher Education Institutions (HEIs) can carry out upstream research pushing forward the frontiers of knowledge and can help industry commercialise mature technologies for the market.
- Efficient Project Management: ANRF can follow the US Defense Advanced Research Projects Agency (DARPA) model with efficient programme managers, transparent funding, and a CEO-led team.
- Risk Taking: Early-stage research involves open-ended exploration that may not always succeed but leads to future breakthroughs.
- The government should track projects while allowing some risk-taking.
Conclusion
India's economic future hinges on robust R&D investment, industry-academia collaboration, and policy reforms. By increasing funding, fostering innovation in universities, and embracing risk-taking, India can break free from the middle-income trap and emerge as a global S&T leader, driving economic growth and technological self-reliance.
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Drishti Mains Question: Analyze the challenges in India’s R&D ecosystem and suggest measures to enhance innovation-led growth. |
UPSC Civil Services Examination, Previous Year Question (PYQ)
Prelims
Q. Which of the following statements is/are correct regarding National Innovation Foundation-India (NIF)? (2015)
- NIF is an autonomous body of the Department of Science and Technology under the Central Government.
- NIF is an initiative to strengthen the highly advanced scientific research in India’s premier scientific institutions in collaboration with highly advanced foreign scientific institutions.Select the correct answer using the code given below:
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (a)
Mains
Q. Give an account of the growth and development of nuclear science and technology in India. What is the advantage of fast breeder reactor programme in India? (2017)
Q. Scientific research in Indian universities is declining, because a career in science is not as attractive as are business professions, engineering or administration, and the universities are becoming consumer-oriented. Critically comment. (2014)
