Mains Marathon 2024

Approach Give a brief introduction on Research and Development in India State the recent trends in India Mention challenges in R&D spending in India Suggest a way forward to address those challenges Conclude Suitably

Introduction

Recently, India’s interim Budget for 2024-25 allocated Rs 1 lakh crore to enhance the nation’s research and innovation ecosystem. This investment reflects a strong commitment to advancing scientific capabilities. The rebranded slogan, ‘Jai Jawan, Jai Kisan, Jai Vigyan, Jai Anusandhan,’ further emphasizes the government's focus on integrating research into national development.

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Trends in R&D Spending in India

Academic Talent Production

• PhD Generation: India produces approximately 40,813 PhDs annually, ranking third globally after the U.S. and China.
• Research Output: India ranked third in research output with over 300,000 publications in 2022.

Patent Grants

• Global Ranking: India secured sixth place globally with 30,490 patents granted in 2022, reflecting an evolving innovation landscape.

Government Funding Allocation

• Investment in R&D: In 2020-21, India invested USD 17.2 billion in R&D.
• Government Sector Share: 54% (USD 9.4 billion) of R&D funding is allocated to the government sector.
• Key Agencies: Major allocations include the Defence Research and Development Organisation (30.7%), the Department of Space (18.4%), the Indian Council of Agricultural Research (12.4%), and the Department of Atomic Energy (11.4%).

Challenges in R&D Spending in India

Low R&D Investment as Percentage of GDP

• Growth in GERD: India's Gross Expenditure on Research and Development (GERD) increased from Rs 6,01,968 million in 2010-11 to Rs 12,73,810 million in 2020-21.
• GDP Percentage: R&D investment stands at 0.64% of GDP, significantly lower than China (2.4%), Germany (3.1%), South Korea (4.8%), and the United States (3.5%).

Less Contribution by Private Sector

• Government vs. Private Sector: GERD is largely driven by the government sector (43.7% central government, 6.7% state governments, 8.8% HEIs, 4.4% public sector industry) with private sector industry contributing only 36.4% in 2020-21.
• Private Sector Lag: Indian private sector’s contribution to GERD is around USD 6.2 billion (37%), whereas global businesses typically contribute over 65% of R&D funding. Leading economies have >70% contribution from private industries.

Under-Utilisation of Allocated Funds

• Departmental Spending: In 2022-2023, the Department of Biotechnology (DBT) used 72% of its budget, the Department of Science and Technology (DST) used 61%, and the Department of Scientific and Industrial Research (DSIR) used 69% of their allocations.
• Potential Causes: Under-utilisation may be due to bureaucratic delays, inefficiencies in project evaluation, lack of prioritisation by the Ministry of Finance, or inadequate planning by the Ministry of Science and Technology.

State Governments’ Inadequate Funding

• Low Allocation: A report by RBI revealed that research spending by state governments is minimal, averaging only 0.09% of GSDP. Only Rajasthan demonstrated a higher commitment to research funding.
• Limited Coverage: The RBI study covered only 10 out of 36 States and Union Territories, indicating that research may not be a priority for most states.

Steps Needed to Enhance R&D Funding in India

• Encouraging Private Sector Collaboration:
  • Strengthen industry-academia partnerships to boost knowledge transfer and innovation.
  • Provide incentives such as relaxed FDI regulations, tax rebates, and clear regulatory roadmaps.
  • Aim to increase GERD to 2% of GDP as a national goal, with efforts to eventually reach 3%.
• Increasing R&D Expenditure as Percentage of GDP:
  • Assess and increase R&D funding to at least 1%, ideally 3% of GDP annually.
    • According to Abhay Karandikar (Secretary, Department of Science and Technology) - to become a global leader in science & tech, India needs to allocate 3-4% of GDP for R&D.
  • Align with global standards where OECD countries average 2.7% and leading economies exceed 2% of GDP.
• Ensuring Increased Role for Higher Education Institutions (HEIs):
  • Boost HEIs' contribution to R&D, currently at 8.8% of total investment.
  • Support diverse stakeholders in addressing R&D challenges and enhancing HEIs' research infrastructure.
• Bridging Manufacturing and Technological Aspirations:
  • Promote private sector involvement and strengthen academia’s research capabilities.
  • Support initiatives like the National Deep Tech Startup Policy and the Anusandhan National Research Foundation (ANRF) Act, 2023.
  • Address gaps in intellectual property protection and technical challenges to unlock market potential.
• Mandating Proper Utilization of Allocated Funds:
  • Improve budget utilization by the Union Ministry of Science and Technology.
  • Enhance bureaucratic capacity for evaluating and monitoring science projects to ensure effective use of funds.
• Prioritizing Expenditure Through State Governments:
  • Increase public sector R&D spending at the state level to improve research facilities and address locally relevant problems.
  • Facilitate the transition of research from lab to industry to foster meaningful innovations.

Conclusion

Government initiatives aim to boost R&D spending in India by offering strategic support for research, innovation, and entrepreneurship, while also encouraging increased private sector engagement. Despite notable growth, India’s R&D investment as a percentage of GDP is still lower than that of major economies. The interim Budget for 2024-25, along with the National Deep Tech Startup Policy (NDTSP) and the Anusandhan National Research Foundation (ANRF) Act, 2023, reflects a strong commitment to enhancing private sector involvement and advancing research, particularly in emerging industries.