Context: 

Recently, the Union Cabinet  approved the National Research Foundation (NRF) Bill, 2023. 

Key Provisions of National Research Foundation (NRF) Bill:

• To establish the NRF as an apex body for  providing high-level strategic direction to scientific research  as envisaged under the National Education Policy (NEP).
• It proposes to absorb the Science and Engineering Research Board (SERB) in NRF.

Need of the Bill:

• To Correct the Skewed Funding: Presently, institutions like the IITs and IISc get a bulk of research funding but State universities get very little, about 10% of the research funds. 
• Fragmented R&D ecosystem characterised by limited collaboration: India lacks synergy and coordination between the government, public institutions, and private organisations. 
  • This fragmentation results in duplicated efforts, inefficient use of resources, and missed opportunities for interdisciplinary research. 
•  Lack of Uniformity : There has also been a lack of uniformity in the funding of scientific research. 

India’s Status of Spending on Research and Development vis-i-vis World:

Need for Research and Development:

• Driving Productivity and Economic Growth: By investing in R&D, countries can develop new technologies and improve existing processes, leading to enhanced resource efficiency and overall economic growth.
• Promoting Low-Cost Indigenous Solutions: It allows for the creation of tailored solutions that are cost-effective and easily accessible to the Indian population. For Example: Development of affordable solutions like the Jaipur Foot.
• Enhancing Learning Outcomes: A strong research culture in higher education institutions contributes to an enhanced teaching and learning experience. 
• Reducing Dependency on Imports: Investing in R&D helps reduce dependence on imported high-end technologies, thereby lowering the import bill and decreasing the fiscal deficit. 
  • By developing indigenous technologies, countries can achieve self-sufficiency and promote domestic industries
• Combating Climate Change: R&D plays a vital role in creating solutions such as low-cost solar panels, electric vehicles (EVs), and lithium batteries, which help reduce greenhouse gas emissions and combat climate change.

Challenges Faced by the R&D Sector:

• Low investment in R&D: The funding in R&D is less than 1% of the GDP. Further there are no extra provisions for R&D in the sunrise sectors.
  • The corporate sector accounts for about two-thirds of gross domestic expenditure on R&D (GERD) in leading economies, its share in India is just 37%. 
• Insufficient Skilled Workforce: Inadequate number of researchers in India compared to China (253 researchers per million inhabitants in India vs. 1,225 in China)
• Ongoing Challenges in Education System: Only 2.7% Colleges run Ph.D. programmes and 35.04% Colleges run Post Graduate Level programmes.
• Excessive Bureaucracy in Public Institutions: In India, education is highly centralised, resulting in limited autonomy for most institutions. Excessive government interference hampers scientific progress and creates disincentives in an already struggling environment.
• Socio-Cultural Challenges in R&D: Sociocultural barriers, especially for women, restrict participation in R&D activities. E.g. The share of female researchers in India was only 18.7% in 2018.
• Capacity constraints in the Indian Patent Office: As of March 2022, the Indian Patent Office faced a significant shortage of patent examiners and controllers. 
  • With only 860 personnel in these roles, it pales in comparison to China’s 13,704 and the US’s 8,132 examiners and controllers. 

Way Forward: 

• Boost R&D Funding: It is crucial for India to increase its R&D investments to a minimum of 2% of GDP by 2030 for  promoting greater private sector participation and investment in research and development.
• Utilising NRF Commitment: Utilise the committed amount of Rs 50,000 crore to address the deficits in grants provided to autonomous universities and institutions by agencies like CSIR and DST.
• Improving Information Sharing: Create a centralised virtual platform to consolidate information on projects granted with public funding, facilitating better information sharing among stakeholders.
• Enhancing Research Capacity: Facilitate training opportunities for Indian students and scientists at the doctoral and postdoctoral levels by providing better remuneration and incentives.
• Ensuring IPR Compliance: Ensure proper adherence to the National Intellectual Property Rights (IPR) policy of 2016 to build investor confidence and attract more investment in R&D.
• Promoting Government-Industry-Academia Partnership: Encourage partnerships between the government, industry, and academia to support the R&D ecosystem in India.

Source: The Hindu