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ANALYSIS OF BUDGET 2024: IMPACTS ON INDIA’S RESEARCH AND DEVELOPMENT LANDSCAPE

Syllabus:

• GS-3– Budget 2024, Economic development , Research and development in the field of Science and Technology

Focus :

• This article examines the implications of India’s Budget 2024 on research and development (R&D), particularly in science and technology. It discusses the government’s focus on advanced technology missions and commercialization of research while addressing concerns about the stagnation of basic research funding, the operationalization of the Anusandhan National Research Foundation (ANRF), and the balance between innovation and traditional academic research.

Source-TH

Introduction

• Context of Budget 2024:
  • The third term of the Narendra Modi government and its focus on advancing national technology missions, such as supercomputing, cyber-physical systems, and quantum technologies.
  • Launch of significant initiatives to encourage private sector involvement in space and geospatial policies.

• Concerns Raised:
  • Persistent issues related to the stagnation of research funding as a percentage of GDP.
  • Challenges in the operationalization and funding mechanisms of the Anusandhan National Research Foundation (ANRF).

Government’s Perspective on the Budget

CSIR’s Viewpoint:

• Key Areas of Focus: Emphasis on climate-resilient agriculture, critical minerals, modular nuclear energy technology, and energy-efficient technologies.
• Budget Allocation: A 10% increase in the budget for the Council of Scientific and Industrial Research (CSIR).
• Opportunities: Plug-and-play industrial parks in 100 cities and the creation of industrial parks under the National Industrial Corridor Development Programme, fostering technology commercialization.

Department of Biotechnology’s (DBT) Perspective:

• Agricultural Research Emphasis: Transforming agricultural research with a focus on productivity and climate resilience.
• Speed Breeding Platforms: Establishment of these platforms to shorten crop development cycles, promoting faster agricultural innovation.
• Encouragement of Private Sector Involvement: Initiatives like the angel tax abolition to attract investments in high-risk biotechnology sectors.

Private Sector Collaboration and ANRF:

• Operationalization of ANRF: Focus on private sector-driven research and prototype development with a significant corpus fund.
• Impact on R&D Commercialization: Aiming to bridge the gap between laboratory research and market-ready innovations.

Concerns and Criticisms from the Scientific Community

Subhash Lakhotia’s Critique:

• Budget Allocation vs. Inflation: The nominal increase in the budget may be offset by inflation, questioning the real impact on research funding.
• Funding Disparities: Concerns about the actual funds available versus allocated, especially for basic research.

Operational Challenges of ANRF:

• Disparities in Funding: The concentration of funding on institutions like IITs and the challenges in reaching state-run institutions.
• Prototype Development vs. Basic Research: Questions about the government’s focus on prototype development potentially overshadowing fundamental research objectives.

Broader Systemic Issues:

• Zero Budgeting System (ZBS): The one-to-one correlation requirement between planned and achieved targets in research, seen as detrimental to the exploratory nature of scientific inquiry.
• Quarterly Reporting Burden: Additional stress on researchers, which may hinder innovation and creativity.

Specific Sectoral Impacts

Space Technology:

• • Venture Capital Fund for Space: Establishment of a fund to promote private sector participation in space technology.
  • Funding Adequacy Concerns: The adequacy of the Rs. 1,000 crore allocation to meet the capital-intensive demands of the space sector.

Clean Energy and Critical Minerals:

• • Initiatives in Solar and Nuclear Energy: Emphasis on reducing taxation for critical inputs to promote clean energy.
  • Critical Minerals Mission: Expected to boost research and development in this area, especially with exemptions on customs duties.

Pharmaceutical Sector:

• • PLI Scheme: Increase in allocation under the Production Linked Incentive (PLI) scheme to boost domestic manufacturing of pharmaceuticals.

Potential Long-Term Impacts

Encouraging Scientific Careers:

• Internship Schemes and Employment Generation: Measures to help science students gain entry into well-known companies, potentially increasing interest in science careers outside academia.

Private Sector Involvement in R&D:

• ANRF and Industry Collaboration: Potential for fostering innovation through private sector participation, but concerns about maintaining a balance with academic research.

Sustainability of R&D Funding:

• Inflation vs. Budget Increases: The sustainability of R&D efforts given the relatively small budget increases compared to inflationary pressures.

Conclusion

Overall Budget Sentiment:

• Mixed Reactions: The budget has been met with a mix of optimism for targeted advancements in technology and concern for the future of basic research and equitable funding distribution.

Need for Strategic Alignment:

• Balancing Innovation and Research: The need for a strategic alignment between innovation-driven by private sector collaboration and the continuation of fundamental scientific research.

Associated Article

https://universalinstitutions.com/budgeting-for-science/

Mains UPSC Question

GS 3

‘Critically analyze the impact of Budget 2024 on India’s research and development sector, particularly in the context of basic scientific research and innovation. Discuss the potential benefits and challenges associated with the operationalization of the Anusandhan National Research Foundation (ANRF).” (250 words)