• UGI USER
  • Mar 14, 2024
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INDIA’S R&D FUNDING, BREAKING DOWN THE NUMBERS

Syllabus:

GS 3:

  • Awareness in the fields of IT, Space, Computers, robotics, nano-technology, bio-technology and issues relating to intellectual property rights.

Focus:

  • India’s technological and manufacturing aspirations hinge on a transformative shift in its R&D landscape
Source:- The Hindu

Breaking down India’s R&D Funding:

  • Interim Budget Announcement:
    • The announcement in the interim Budget for 2024-25 includes a corpus of ₹1 lakh crore to bolster the research and innovation ecosystem in India.
    • Rebranding of the slogan ‘Jai Jawan Jai Kisan’ to ‘Jai Jawan, Jai Kisan, Jai Vigyan, Jai Anusandhan’ signifies the emphasis on research and innovation for development.
  • R&D Expenditure and GDP Share:
    • India’s Gross Expenditure on Research and Development (GERD) increased from ₹6,01,968 million in 2010-11 to ₹12,73,810 million in 2020-21.
    • However, research and development investment as a percentage of GDP is 0.64%, trailing behind major economies like China, Germany, South Korea, and the United States.
  • Research Output and Innovation:
    • India annually produces 40,813 PhDs, ranking third globally after the United States and China.
    • India ranks third globally in research publications, with over 3,00,000 publications in 2022.
    • India secured the sixth position globally in patent grants with 30,490 patents granted in 2022.
  • Sector-wise Contribution to GERD:
    • Government sector contributes 54% ($9.4 billion) of India’s total R&D investment.
    • Key scientific agencies like the Defence Research and Development Organisation, Department of Space, Indian Council of Agricultural Research, and Department of Atomic Energy receive significant funding.
    • Private sector contribution stands at approximately $6.2 billion, representing 37% of GERD.
    • Higher Education Institutions (HEIs) contribute 8.8% ($1.5 billion) to R&D investment.
Status of India’s R&D:

  • Definition of R&D by UNESCO:
    • R&D is defined as any systematic activity aimed at increasing the stock of knowledge and its application, including knowledge of humanity, culture, and society.
  • National Science Day:
    • The theme for 2024 is “Science for Sustainable Development,” emphasizing India’s goal to achieve developed nation status by 2047 through science and technology.
  • Government Expenditure on R&D:
    • In India, the gvernment shoulders 60% of the expenditure on Research and Development (R&D), in contrast to other nations where private enterprise leads in investment.

Research:

  • India Innovation Index 2021:
    • The index revealed that India’s overall spending on R&D is relatively low across the country.
  • Decline in R&D Expense:
    • India’s R&D expenditure has decreased to 0.64% of GDP from 0.8% in 2008-2009 and 0.7% in 2017-2018.
    • This contrasts with the world average of around 1.8%.
  • STIP, 2013:
    • The Science, Technology, and Innovation Policy of 2013 highlighted the national goal of increasing Gross Expenditure on R&D (GERD) to 2% of GDP.
  • Comparison with Developed Countries:
    • Most developed countries allocate between 2% and 4% of their GDP for R&D.
    • The US and UK have consistently exceeded the 2% mark over the past decade.
    • In 2021, OECD member countries on average invested 2.7% of their GDP in R&D.

Challenges in Sustainable Funding for R&D:

  • Under-utilisation of Budgets:
    • Departments like DBT, DST, and DSIR consistently under-utilise their budget allocations.
    • In 2022-2023, DBT used only 72%, DST used only 61%, and DSIR spent 69% of their allocations.
  • Delays in Disbursements:
    • Lack of capacity leads to delays in grant and salary disbursements, impacting research and development projects.
  • Uncertain Government Budget Allocation:
    • Government funding for science is uncertain, subject to changes in political priorities and economic conditions.
    • R&D funding is often insufficient compared to other sectors due to non-prioritisation within government budgets.
  • Insufficient Private Sector Investment:
    • In 2020-2021, the private sector contributed 36.4% of GERD, significantly lower than in developed countries.
    • Factors like poor capacity for R&D evaluation and regulatory ambiguity deter private sector investment.

How can India Improve Its R&D Spending?

  • Consistent Investment:
    • Science requires consistent, large-scale investment. India needs to spend more on R&D to reach developed nation status.
  • Philanthropic Funding:
    • Encouraging wealthy individuals, corporations, and foundations to invest in R&D through philanthropy can boost funding.
    • Establishing dedicated funds or grants for scientific research can attract donations.
  • Industry-Academic Collaboration:
    • Facilitating partnerships between academia and industry can leverage resources and expertise.
    • Government incentives or tax breaks can incentivise such collaborations.
  • Venture Capital and Angel Investors:
    • Encouraging venture capital firms and angel investors to invest in R&D projects can provide significant funding.
    • Startups and small enterprises often drive innovation and can benefit from private investment.
Government Initiatives related to R&D:

  • Development of Centres of Excellence:
    • Under the purview of various ministries or organizations, initiatives focus on developing Centers of Excellence to foster advanced research and innovation in specialized fields.
  • Creation of National Research Foundation:
    • Established by the government, the National Research Foundation aims to centralize and streamline research funding to support high-impact projects across various domains.
  • VAIBHAV Fellowship:
    • Administered by relevant ministries or organizations, the VAIBHAV Fellowship program aims to attract global talent and expertise to contribute to India’s research and development landscape.
  • Global Innovation Index 2023:
    • India’s performance in the Global Innovation Index 2023, under the oversight of relevant governmental bodies, showcases efforts to improve innovation capabilities.
  • Atal New India Challenge 2.0:
    • Implemented by designated ministries or organizations, the Atal New India Challenge 2.0 promotes innovation and entrepreneurship by providing support and funding for innovative solutions to national challenges.
  • New Science Awards:
    • Administered by relevant ministries or organizations, the government announced new science awards such as the Vigyan Yuva-Shanti Swarup Bhatnagar Awards to recognize and incentivize excellence in scientific research.
  • Post-Doctoral Fellowships (PDFs):
    • Managed by relevant ministries or organizations, the government has increased the number of Post-Doctoral Fellowships (PDFs) from 300 annually to 1000, providing opportunities for researchers to further their studies and contribute to R&D.
  • SERB Fellowships:
    • Administered by the Science and Engineering Research Board (SERB) or relevant ministries, initiatives like the SERB-Ramanujan Fellowship, SERB-Ramalingaswami re-entry Fellowship, and SERB-Visiting Advanced Joint Research Faculty Scheme (VAJRA) aim to attract bright researchers of Indian origin to contribute to the science, technology, and innovation ecosystem in India.

Source:

https://epaper.thehindu.com/reader

Mains Practice Question:

“Discuss the challenges and opportunities associated with India’s research and development (R&D) funding landscape, considering its comparative position globally and the role of government and private sectors. Assess the impact of recent policy initiatives on incentivizing R&D investment and fostering innovation for economic growth.”