India’s R&D Funding Landscape: Strategy, Initiatives, and Challenges

Context

This editorial is based on the news “India’s R&D funding, breaking down the numbers” which was published in The Hindu. The announcement of  ₹1 lakh crore allocation in the 2024-25 interim Budget to strengthen the research and innovation ecosystem has sparked enthusiasm within the scientific and research communities.

Background: The decision to rebrand the slogan of  ‘Jai Jawan Jai Kisan’ to now ‘Jai Jawan, Jai Kisan, Jai Vigyan, Jai Anusandhan’ is intended to reinforce the foundation of research and innovation for development. 

India’s R&D Funding Landscape: Growth, Investment, and Innovation Initiatives

The following are various data associated with the current research and development (R&D) funding landscape in India and its resulting output.

• Table : India’s Gross Expenditure on Research and Development (GERD) growth.

• Table: R&D funding & Investment as a percentage of GDP (2020-21)

• Despite the comparatively lower share of GDP dedicated to R&D, India has emerged as a powerhouse in producing academic talent.

• India’s research output and talent production:

• GERD Contribution by Sector: 

• India’s Total R&D funding & Investment (2020-21): 

• Key Scientific agencies utilization of Government R&D funding:

• Recent Initiatives to bolster research and Innovation:

Addressing Challenges in India’s R&D Infrastructure Development

1. Low private sector involvement: Private Sector contributes only 37% to India’s GERD compared to more than 70% in leading innovative economies.
2. Inequitable Fund Distribution: Among various institutions and research areas is a challenge.
3. Lack of Interdisciplinary collaborations between different fields of study and upholding global standards in research quality and output is an issue.
4. Comparatively lower R&D expenditure (0.64% of GDP) is lower than major developed and emerging economies.

Suggestions: Encouraging Private Sector in Investment in R&D, Strengthening research capabilities of universities and colleges, Ensuring equitable distribution of Fund and fostering collaborations among stakeholders are needed.

Conclusion

The interim Budget, combined with the NDTSP and ANRF Act, sends positive signals regarding India’s commitment to incentivising private sector-led research and innovation, particularly in burgeoning industries.

DOWNLOAD PDF