• UGI USER
  • Jul 10, 2024
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BUDGETING FOR SCIENCE

Syllabus:

GS 2:

  • Government Policies and Interventions for Development in various sectors

GS 3:

  • Science and Technology- Developments and their Applications.

Why in the News?

The upcoming Union Budget has sparked discussions on significantly increasing R&D spending and providing greater autonomy to scientific institutions. This renewed focus aims to emulate successful models in space and atomic energy and enhance India’s global standing in scientific research and innovation.

 Source:  IE

Political Support for Science

  • Historical Commitment: Every Prime Minister, from Jawaharlal Nehru to Narendra Modi, has emphasized the importance of investing in science and technology.
  • Nehru’s Vision: Nehru was dedicated to the development of space research and atomic energy, viewing science as integral to modern life.
  • Current Status: Despite promises, significant progress has been limited to space and atomic energy, with overall R&D spending remaining low.
  • Declining Position: Former PM Manmohan Singh highlighted India’s declining global position in science, emphasizing the need for increased efforts.
  • Economic Comparison: The Prime Minister’s Economic Advisory Council pointed out that India lags behind countries like the US, China, Israel, and South Korea in R&D spending.

R&D Spending and Global Comparison

  • Global Benchmarks: Countries such as the US (2.8%), China (2.1%), Israel (4.3%), and South Korea (4.2%) far outpace India’s R&D spending.
  • China’s Growth: China increased its R&D expenditure from 0.7% in the 1990s to 2.1%, now ranking second globally in R&D spending in PPP terms.
  • Employment Disparity: China employs 738,000 people in R&D compared to India’s 158,000, highlighting the need for increased investment in human resources.
  • Strategic Vision: China’s long-term goal is to become a major technological innovation power by 2050 through substantial reforms and restructuring.
  • Learning from China: India can emulate China’s approach by significantly boosting R&D investments and providing greater autonomy to scientific institutions.

Autonomy and Institutional Performance

  • Successful Models: India’s progress in space and atomic energy is attributed to liberal investment and high autonomy granted to respective commissions.
  • Empowered Bodies: Bodies like the Space Commission and Atomic Energy Commission, led by senior scientists and key government officials, operate with minimal bureaucratic constraints.
  • Private Sector Role: Despite attempts to incentivize private sector R&D through tax concessions, the results have been disappointing.
  • Government Dominance: In India, the government accounts for 56% of R&D spending, unlike other countries where private sector participation is higher.
  • Capital Development: India allocates a significant portion (44%) of R&D expenditure to capital development, contrasting sharply with countries like China and the US.

Future Directions and Recommendations

  • PM’s Vision: Prime Minister Modi has emphasized the role of science, technology, research, and innovation in building a robust Indian economy.
  • Unified Institutions: Proposing the merger of scientific institutions into overarching bodies like the Space and Atomic Energy Commissions, with similar autonomy.
  • Private Sector Mandate: Suggesting a mandate for companies to allocate 2% of profits to R&D, with unspent amounts contributing to the National Research Foundation (NRF).
  • NRF Utilization: The NRF’s corpus could fund centrally sponsored schemes for state governments, educational institutions, and corporate research initiatives.
  • Expenditure Clarification: Excluding building and fixed asset costs from R&D expenditure figures to provide a clearer picture of actual research investment.

Budgetary and Policy Recommendations

  • Industry Consultation: The Finance Minister should engage with top scientists to gather innovative ideas for boosting R&D.
  • Higher Learning Focus: Developing a research mentality in higher education institutions to foster a culture of innovation.
  • State Government Role: Allowing state governments to raise loans up to 0.5% of GSDP for exclusive use in R&D projects approved by the NRF.
  • Comprehensive Approach: This Budget should aim to revitalize the science and technology sector, essential for achieving national development goals.
  • Holistic Development: By increasing funds, ensuring greater autonomy, and fostering a research-driven culture, India can significantly advance its scientific and technological capabilities.
Government Initiatives to promote R&D

1.   Atal Innovation Mission (AIM): Established in 2016, AIM aims to nurture innovation and entrepreneurship throughout India. It supports the creation of Atal Tinkering Labs in schools and Atal Incubation Centers in higher education institutions to encourage creative thinking and innovation from an early age.

2.   Innovation of Science Pursuit for Inspire Research (INSPIRE): INSPIRE seeks to attract young talent to science and research by providing scholarships and mentorship programs. This initiative aims to build a strong foundation for future scientific breakthroughs by motivating students to pursue careers in research.

3.   One Week – One Lab Campaign: This campaign promotes awareness of CSIR-NPL technologies, addresses societal issues, and fosters scientific curiosity among students, encouraging them to develop innovative solutions.

4.   National Initiative for Developing and Harnessing Innovations (NIDHI): NIDHI provides a comprehensive plan to support start-ups, aiming to double the number of incubators and start-ups within five years. It seeks to build a robust ecosystem that accelerates start-up growth and innovation.

5.   National Start-up Awards: These awards recognize exceptional start-ups and ecosystem enablers that contribute to economic growth through innovation and competition, setting successful models for others to follow.

6.   National Research Foundation: This proposed foundation will enhance research efforts across disciplines, ensuring that India’s research output meets national priorities and addresses key challenges.

Way Forward

  1. Increase R&D Spending: Raise R&D expenditure to at least 2% of GDP to match global standards and drive scientific innovation.
  2. Autonomy for Institutions: Grant greater autonomy to scientific institutions similar to the Space and Atomic Energy Commissions to reduce bureaucratic constraints.
  3. Private Sector Engagement: Mandate 2% of corporate profits for R&D and channel unspent funds to the National Research Foundation to boost private sector participation.
  4. Focused Investments: Exclude building and fixed asset costs from R&D expenditure figures to ensure funds are directed towards actual research activities.
  5. Educational Reforms: Cultivate a research-oriented mindset in higher learning institutions through enhanced funding and support for research initiatives.
  6. State-Level Initiatives: Allow state governments to raise additional funds exclusively for R&D projects, fostering regional innovation and development.
  7. Collaborative Efforts: The Finance Minister should consult top scientists and industry leaders to generate innovative ideas and policies, ensuring a comprehensive and inclusive approach to advancing science and technology in India.

Conclusion

A strategic increase in R&D funding, institutional autonomy, and private sector involvement are crucial for transforming India’s scientific landscape. Implementing these measures in the upcoming Budget can drive innovation, strengthen the economy, and position India as a global leader in science and technology.

Source:The Hindu

Mains Practice Question:

Discuss the current state of R&D investment in India. Evaluate the measures needed to enhance R&D spending and autonomy for scientific institutions to boost innovation and technological advancement in the country.

Associated Article:

https://universalinstitutions.com/overturn-cultural-practices-and-dogmas-to-spur-rd-in-india/