Why is it in the 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.

Context:

• In the current scenario, the recent allocation of a substantial ?1 lakh crore in India's Interim Budget for 2024-25 to enhance the research and innovation ecosystem underscores the nation's dedication to advancing scientific pursuits.
• Additionally, the decision to expand the iconic slogan 'Jai Jawan Jai Kisan' to 'Jai Jawan, Jai Kisan, Jai Vigyan, Jai Anusandhan' signifies a renewed focus on research and innovation as essential elements of development.
• Evaluating the present state of India's research and development (R&D) landscape, including its funding, output, and the potential impact of recent initiatives on nurturing a conducive environment for research and innovation, is imperative.

Current Outlook of India's R&D Landscape:

• Gross Expenditure on Research and Development: India's R&D sector has witnessed substantial growth, with Gross Expenditure on Research and Development (GERD) increasing from ?6,01,968 million in 2010-11 to ?12,73,810 million in 2020-21.
  • Despite this growth, India's research investment as a percentage of GDP remains at 0.64%, lagging behind major developed and emerging economies like China (2.4%), Germany (3.1%), South Korea (4.8%), and the United States (3.5%).
• Academic Talent: Despite the relatively lower GDP allocation for R&D, India has emerged as a key producer of academic talent, annually producing an impressive 40,813 PhDs, ranking third globally after the United States and China.
• Research Output: India's research output remains substantial, ranking third globally with over 3,00,000 publications in 2022, showcasing the nation's robust research ecosystem and its dedication to advancing knowledge across various fields.
• Innovation: India demonstrates commendable performance in patent grants, securing the sixth position globally with 30,490 patents granted in 2022.
  • While this number is lower compared to the U.S. and China, it reflects India's evolving innovation landscape and its potential for further growth in intellectual property creation.
• Major Sponsors: 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.
• Investment in R&D: According to R&D statistics (2022-23) from 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, predominantly utilized by four key scientific agencies — the DRDO (30.7%), the Department of Space (18.4%), ICAR (12.4%), and the Department of Atomic Energy (11.4%).

Major Challenges Facing R&D:

• Private Sector Inertia: Despite India's significant Gross Expenditure on Research and Development (GERD), private industries contribute only 37% of the country's R&D funding, reflecting a discrepancy compared to the global trend where business enterprises typically contribute over 65%.
• Low Participation by Higher Education Institutions (HEIs): HEIs play a minor role in R&D investment, contributing only 8.8% ($1.5 billion), limiting their potential contribution to research and innovation.
• Brain Drain: Talented researchers often migrate to countries with better research infrastructure and funding opportunities, leading to a loss of skilled manpower and hindering R&D progress.
• Inadequate Education and Training: The education system may fail to adequately equip students with the requisite skills and knowledge needed to excel in R&D, posing a challenge to innovation and scientific advancement.
• Bureaucratic Hurdles: Complex procedures and bureaucratic red tape can impede research initiatives, delaying progress and discouraging potential investors from engaging in R&D activities.
• Limited Collaboration with Academia: A gap exists between academic research and industry needs, hampering the effective transfer of knowledge and technology, and inhibiting the development of innovative solutions to real-world problems.

Proposed Measures:

• Embrace a Collaborative Approach: Fostering collaboration among the government, business enterprises, and Higher Education Institutions (HEIs) is imperative to harness the full potential of science, technology, and innovation for driving economic growth and technological progress.
• Promote Public-Private Partnerships: Encouraging collaboration between academia and industry can facilitate the translation of research findings into commercial applications, bridging the gap between theoretical knowledge and practical implementation.
• Optimize Resource Allocation: Directing resources towards safeguarding intellectual property rights and addressing technical challenges can unlock new markets and spur innovation.
• Provide Government Subsidies to Stimulate Private Sector Investment: Implementing government initiatives such as tax incentives and grants can incentivize increased private sector investment in Research and Development (R&D), bolstering India's R&D ecosystem and fostering stronger industry-academia partnerships for knowledge exchange and innovation.
• Prioritize Skill Development: Reforms in education that prioritize the development of critical thinking, problem-solving, and research skills are essential to nurture a workforce capable of driving innovation and scientific advancement.
• Streamline Bureaucratic Processes: Simplifying regulatory procedures and regulations can expedite research projects, attract investments, and create a conducive environment for R&D activities.
• Incentivize Innovation: Introducing government schemes and awards to recognize and reward innovative research endeavors can incentivize scientists, researchers, and businesses to pursue groundbreaking innovations that contribute to societal progress and economic development.

Government Initiatives:

• National Deep Tech Startup Policy (NDTSP): Recent initiatives, such as the National Deep Tech Startup Policy (NDTSP) and the Anusandhan National Research Foundation (ANRF) Act, signal a strong commitment to fostering research and innovation.
  • The NDTSP aims to incentivize private sector engagement in R&D, while the ANRF Act seeks to bridge the R&D investment gap and nurture a robust research culture within HEIs.
• Anusandhan National Research Foundation (ANRF) Act: Enacted to address India's persistent R&D investment gap, this legislation aims to cultivate a thriving research culture within Higher Education Institutions (HEIs) and drive innovation across various sectors.
• UchhatarAvishkarYojana (UAY): Geared towards promoting innovation that addresses industry needs and enhances India's manufacturing competitiveness, UAY fosters collaboration between academia and industry, both domestically and internationally, to drive advancements in research and technology.
• Impacting Research Innovation & Technology (IMPRINT): This initiative endeavors to tackle pressing engineering challenges by facilitating interdisciplinary research collaborations and translating knowledge into practical solutions across ten designated technology domains.
• Establishment of Research Parks: Research parks established at premier institutes such as IIT Delhi, IIT Guwahati, and IIT Kharagpur serve as platforms for fostering collaboration between academia, industry, and entrepreneurial ventures, facilitating the establishment of R&D units, and promoting innovation.
• Impact of Recent Initiatives: These initiatives, coupled with the allocation in the interim Budget, are poised to drive India's research and innovation agenda forward, particularly in burgeoning industries.

Way Forward:

• India's technological and manufacturing ambitions rely on a pivotal transformation within its R&D domain, necessitating a dual-pronged strategy:
• Encouraging active participation from the private sector, alongside
• Strengthening the research infrastructure within academia.
• Embracing a multifaceted approach that engages a spectrum of stakeholders is imperative to confront the challenges and unlock the full potential of R&D, fostering India's economic expansion and global competitiveness.
• Drawing insights from the R&D frameworks of developed nations while leveraging India's inherent strengths in agile decision-making and strategic alignment could catalyze a formidable evolution within its R&D landscape.

Conclusion

While significant strides have been made, there is a need for increased funding, stronger industry-academia collaboration, and policy measures to incentivize private sector involvement. Recent initiatives such as the NDTSP and the ANRF Act represent positive steps towards realizing India's potential as a powerhouse of research and innovation. By creating a conducive environment for research and innovation, India can pave the way for sustainable development and prosperity in the years to come.