Ease of Doing R&D in India: Challenges, Reforms and the Path to Innovation Growth

A high-level panel constituted by NITI Aayog released the “Ease of Doing R&D” report highlighting serious structural weaknesses in India’s research ecosystem.

• The report observed that India’s Gross Expenditure on Research and Development (GERD) has remained stagnant at 0.6–0.7% of GDP, far below:
  • China – 2.6%
  • USA – 3.4%
  • South Korea – 5.3%
• The panel recommended major reforms including:
  • Increasing GERD to 2% of GDP
  • Restoring 5% GST slab for R&D procurement
  • Simplifying grant approval and procurement systems
  • Expanding support for State universities and researchers.

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Major Takeaways from NITI Aayog’s “Ease of Doing R&D” Report

• ROPE-Based Reform Strategy: The reports propose the ROPE framework (Removing Obstacles and Promoting Enablers) as the central strategy for improving India’s research ecosystem by reducing administrative delays, regulatory bottlenecks and institutional inefficiencies that hinder scientific innovation.
• Focus on Research-to-Commercialisation Pipeline: The reports emphasize that India must move beyond merely generating academic knowledge and instead promote mission-oriented research capable of converting laboratory discoveries into commercially viable technologies, industrial products and real-world applications.
• Enhancing Private Sector and CSR Participation: A major recommendation is to broaden the funding base for research by encouraging greater private sector investment, industry collaboration and utilisation of Corporate Social Responsibility (CSR) funds to support startups, emerging technologies and innovation-driven enterprises.
• Need for Flexible and Responsive Governance: The reports highlight that outdated procurement systems, fragmented funding mechanisms and rigid bureaucratic procedures are slowing scientific progress and reducing institutional efficiency.
  • They advocate for adaptive administrative frameworks and simplified governance structures to improve the overall Ease of Doing Research in India.
• Promoting a Trust-Based Research Ecosystem: The reports recommend shifting from an excessively compliance-driven approach towards a trust-based, outcome-oriented research environment that provides scientists and early-stage researchers with greater operational autonomy, flexibility and decision-making freedom.

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Key Issues and Challenges in India’s R&D Ecosystem

• Persistently Low Investment in R&D: India continues to spend only around 0.6–0.7% of GDP on research and development, despite being one of the world’s largest economies and aspiring to emerge as a global innovation hub.
  • Private sector participation in R&D funding remains limited, leading to excessive dependence on government expenditure for scientific research.
• Excessive Concentration of Funding in Elite Institutions: The report highlighted that nearly 80% of funding under the Anusandhan National Research Foundation (ANRF) is concentrated within the IIT ecosystem.
  • Despite the mandate of Anusandhan National Research Foundation to support research across institutions, State universities and regional colleges continue to receive inadequate funding and infrastructure support.
  • The Hub-and-Spoke model under the PAIR programme often centralises sophisticated laboratories and equipment within premier institutions.
• Fragmentation and Duplication Among R&D Agencies: Multiple agencies such as Department of Science and Technology, Council of Scientific and Industrial Research and Anusandhan National Research Foundation are funding overlapping research areas without adequate coordination, leading to duplication of projects, inefficient utilisation of public funds and fragmented research governance.
  • Critical sectors such as Hydrogen Energy, Carbon Capture Utilisation and Storage (CCUS) and Clean Energy Technologies are witnessing repeated institutional efforts, which reduces policy coherence and weakens the overall effectiveness of India’s innovation ecosystem.
• Delays in Grant Disbursal and Financial Rigidities: Research grants are often released 3–6 months after approval, while the “use-it-or-lose-it” budgeting framework, complex Treasury Single Account (TSA) mechanisms and frequent changes in fund distribution systems create uncertainty and disrupt continuity in scientific projects.
  • Researchers also face rigid procurement procedures and excessive financial compliance requirements, which delay the purchase of even basic laboratory equipment and consumables, thereby slowing scientific experimentation and innovation.
• Weak Industry–Academia Collaboration: Research conducted in universities and laboratories often remains disconnected from industrial application and market needs.
  • India continues to face weak technology transfer systems, poor patent commercialisation, limited startup–research integration and inadequate innovation scaling mechanisms, which restrict the translation of scientific research into commercially viable products and technologies.
• Excessive Bureaucratic and Administrative Burden: Scientists and research institutions face lengthy approval procedures, excessive paperwork, complex auditing requirements and slow administrative decision-making, due to which researchers spend substantial time on compliance and procedural formalities instead of scientific innovation and experimentation.

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Consequences of Weak R&D Ecosystem

• Reduced Global Technological Competitiveness: India’s low investment in research and innovation weakens its ability to compete with technologically advanced economies in sectors such as:
  • Artificial Intelligence
  • Semiconductor manufacturing
  • Biotechnology
  • Advanced materials
  • Defence technology
• Brain Drain and Talent Migration: Inadequate funding, poor infrastructure and delayed fellowships compel many highly skilled Indian researchers to migrate abroad for better opportunities.
  • The outflow of scientific talent weakens India’s domestic innovation ecosystem and reduces long-term research capacity.
• Weak Innovation and Patent Ecosystem: Limited commercialisation of research reduces India’s ability to generate globally competitive patents, startups and technology-driven enterprises.
  • Scientific discoveries often fail to translate into scalable industrial applications and economic gains.
• Regional Imbalance in Scientific Development: Excessive concentration of funding within elite institutions widens disparities between premier institutes and State universities.
  • Smaller institutions remain deprived of modern laboratories, advanced infrastructure and research opportunities.
• Slow Progress Towards Atmanirbhar Bharat: Weak indigenous R&D capacity undermines India’s goal of achieving technological self-reliance in critical sectors such as defence, electronics, renewable energy and healthcare technologies.
  • Continued import dependence creates strategic and economic vulnerabilities.
• Reduced Attractiveness of Research Careers: Delayed fellowships, uncertain funding and administrative burdens discourage students from pursuing long-term careers in scientific research.
  • This weakens the pipeline of future scientists, innovators and technology leaders.

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Way Forward

• To build a more efficient, decentralised and innovation-oriented research ecosystem, the NITI Aayog panel has recommended the following institutional and governance reforms:
  • Decentralise R&D decision-making powers to improve institutional autonomy and reduce excessive bureaucratic centralisation.
  • Enable trust-based self-certification mechanisms and strengthen Technology Transfer Offices (TTOs) for smoother innovation and commercialisation processes.
  • Link incubators across ministries to promote better inter-ministerial coordination and integrated innovation ecosystems.
  • Expand the “One Nation One Subscription” initiative for journals and research papers to private institutions and researchers.
  • Fill sanctioned faculty positions in State universities to strengthen regional research ecosystems and improve scientific manpower.
  • Strengthen grassroots innovation cells and State Science & Technology (S&T) councils to promote inclusive and decentralised scientific development.
  • Mandate periodic “Ease of Doing R&D” self-assessments to identify administrative bottlenecks and improve research governance.
  • Set up a National Institute for Science Policy & Governance (NISPG) to strengthen long-term science policy planning, coordination and institutional reforms.
• Strengthen Scientific Human Capital: India must expand post-doctoral fellowships, ensure timely scholarship payments and create attractive long-term career pathways for researchers.
• Promote Industry–Academia Collaboration: Stronger linkages between universities, startups and industries are essential for improving technology transfer, commercialisation and innovation outcomes.
• Strengthen State Universities and Regional Institutions: Greater financial and infrastructural support should be directed toward State universities and emerging research centres to reduce institutional inequality.
• Simplify Grant and Procurement Systems: Single-window digital approval systems, flexible procurement norms and time-bound grant disbursal mechanisms are necessary to improve the Ease of Doing R&D.

Conclusion

• India’s aspiration to emerge as a global innovation and technology leader depends upon building a robust, inclusive and well-funded R&D ecosystem.
• Addressing issues related to low investment, institutional concentration, talent shortages and administrative inefficiencies is essential for strengthening India’s scientific competitiveness and achieving long-term technological self-reliance.

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