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Mahesh

14/03/24 11:29 AM IST

India’s R&D funding, breaking down the numbers

In News
  • The announcement in the interim Budget for 2024-25, of a corpus of ₹1 lakh crore to bolster the research and innovation ecosystem within the country, has sparked enthusiasm within the scientific and research communities.
R&D in India
  • India’s R&D is witnessing significant growth, with a notable increase in Gross Expenditure on Research and Development (GERD) from ₹6,01,968 million in 2010-11 to ₹12,73,810 million in 2020-21.
  • However, with research and development investment as a percentage of GDP standing at 0.64%, India falls behind major developed and emerging economies such as China (2.4%), Germany (3.1%), South Korea (4.8%) and the United States (3.5%).
  • Despite the comparatively lower share of GDP dedicated to R&D, India has emerged as a powerhouse in producing academic talent. Annually, India generates an impressive 40,813 PhDs and is in third place after the United States and China.
  • This achievement reflects India’s commitment to fostering intellectual capital and contributing significantly to global research endeavours.
  • Additionally, India’s research output remains substantial, ranking third globally, with over 3,00,000 publications in 2022, highlighting the nation’s robust research ecosystem and its commitment to advancing knowledge across diverse fields.
  • India also demonstrates commendable performance in patent grants, securing the sixth position globally with 30,490 patents granted in 2022.
  • While this figure is lower compared to the U.S. and China, it underscores India’s evolving innovation landscape and its potential for further growth in intellectual property creation
  • In India, GERD is primarily driven by the government sector, including the central government (43.7%), State governments (6.7%), Higher Education Institutions (HEIs) (8.8%), and the public sector industry (4.4%), with the private sector industry contributing only 36.4% during 2020–21.
  • Collaboration between the government, business enterprises and HEIs is essential to maximise the positive impact of science, technology, and innovation on economic growth and technological advancement.
Investment in R&D
  • According to the R&D statistics (2022-23) of the Department of Science and Technology, India’s total investment in R&D reached $17.2 billion in 2020-21.
  • Within this sum, 54% ($9.4 billion) is allocated to the government sector and predominantly utilised by four key scientific agencies — 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%).
  • A significant portion of R&D funding originates from the government, with considerable allocation directed towards autonomous R&D laboratories operated by the government.
  • These laboratories serve a pivotal role in driving research and technology development with strategic implications.
  • This symbiotic relationship between government funding, R&D execution, and strategic focus underscores the integral role of the government in steering and fostering key scientific advancements.
  • The contribution of private industries lags behind that of many other economies. At approximately $6.2 billion, Indian businesses represent 37% of the country’s GERD, in contrast to the global trend, where business enterprises typically contribute over 65% of R&D.
  • In leading innovative economies such as China, Japan, South Korea, and the U.S., a significant portion (>70%) of R&D funding is from private industries, driven by market forces and profit motives, and the actual R&D activities are conducted in the HEIs.
  • India’s R&D ecosystem has its advantages in terms of efficiency, but could benefit more from strong private enterprises involvement and stronger industry-academia collaboration, facilitating knowledge transfer and fostering innovation. 
Impact of initiatives
  • India’s technological and manufacturing aspirations hinge on a transformative shift in its R&D landscape.
  • Closing the existing gap demands a dual strategy: encouraging private sector involvement and fortifying academia’s research infrastructure.
  • Initiatives such as the National Deep Tech Startup Policy (NDTSP) signal a strong commitment to technological progress and innovation.
  • This policy holds the potential to incentivise private sector engagement in India’s R&D ecosystem.
  • Despite the substantial time and technical uncertainties involved in Deep Tech’s creation, allocating resources to safeguard intellectual property and tackle technical obstacles can unlock untapped markets.
  • The recent enactment of the Anusandhan National Research Foundation (ANRF) Act, underscores the government’s dedication to catalysing research and innovation as the cornerstone of development.
  • This legislative move will bolster scientific research nationwide. The Act aims to bridge India’s persistent R&D investment gap while nurturing a robust research culture within HEIs.
  • Although promising, this initiative must surmount challenges such as ensuring equitable fund distribution, fostering interdisciplinary collaborations, and upholding global standards.
  • These efforts are poised to elevate R&D spending in India, providing strategic guidance for research, innovation, and entrepreneurship while encouraging greater private sector involvement.
  • The interim Budget, combined with the NDTSP and ANRF Act, sends positive signals regarding India’s commitment to incentivising private sector-led research and innovation, particularly in burgeoning industries.
Source- The Hindu

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