Research & Development

Context: The announcement in the interim Budget for 2024-25 about setting aside ₹1 lakh crore, and the decision to rebrand the slogan from 'Jai Jawan Jai Kisan' to 'Jai Jawan, Jai Kisan, Jai Vigyan' to now 'Jai Jawan, Jai Kisan, Jai Vigyan, Jai Anusandhan', aims to strengthen the importance of research and innovation for progress.

India’s evolving Research & Development landscape: 

• India’s R&D is witnessing significant growth, with a notable increase in Gross Expenditure on Research & Development (GERD) from ₹6,01,968 million in 2010-11 to ₹12,73,810 million in 2020-21. India’s R&D expense has dropped to the current 0.64% of GDP.
• India falls behind major developed and emerging economies such as China (2.4%), Germany (3.1%), South Korea (4.8%) and the United States (3.5%).
• India has emerged as a powerhouse in producing academic talent. Annually, India generates an impressive 40,813 PhDs and is in third place after the United States and China, reflecting India’s commitment to fostering intellectual capital and contributing significantly to global research endeavors.
• India's contribution to research is significant, placing 3^rd with more than 300,000 published research papers in 2022, emphasizes India's strong research environment and its dedication to expanding knowledge in various areas.
• India secures the 6^th position globally with 30,490 patents granted in 2022, underscores India’s evolving innovation landscape and its potential for further growth in intellectual property creation.

Necessity for funding in R&D: 

• Key driver of productivity and economic growth: Contributes to advancement of new technologies, fosters capital formation, and reduces imports, thereby contributing to a decrease in the country's fiscal deficit.
• Solving complex challenges: Enables researchers to address complex problems and challenges like Covid-19.
• National security: India, being one of the largest defence importers, faces increased vulnerability and threats to national security due to its reliance on foreign countries for domestic R&D needs.
• Human capital: A strong culture of research and knowledge creation in higher education fosters optimal teaching and learning, ultimately enhancing human capital.
• Cost effective: To create cost effective and easily accessible solutions for the Indian population E.g. Madras foot.
• Global competitiveness: By driving innovation, fostering technological advancement, and ensuring sustainable economic growth.

Segment Wise R&D expenditure trends in India: 

• In 2020-21, GERD is primarily driven by the government sector, including Central government (43.7%), State governments (6.7%), Higher Education Institutions (HEIs) (8.8%), and public sector industry (4.4%), with the private sector industry contributing only 36.4%.
• Government expenditure on R&D is undertaken almost entirely by Central Government. 
• State Governments also play a role in R&D spend. The top R&D spenders on Agriculture Research & Education in 2018-19 are Maharashtra, Tamil Nadu and Karnataka. 

Challenges with R&D:

• Primary focus on space and defence: Government sector primarily allocated funds to four major science agencies: Defence Research and Development Organisation,  Department of Space, Indian Council of Agricultural Research, and Department of Atomic Energy.
• Dependency on public money: Current funding is not enough, and relying mainly on government money shows that the financing system is not fully developed. In FY 2020-21, the private sector provided 36.4% of the total research and development spending, while the central government contributed 43.7%. State governments (6.7%), higher education institutions (8.8%), and public sector companies (4.4%) were also key funders. In developed countries, a major share of R&D investment comes from the private sector.
• Hesitancy obstacles: from regulatory uncertainties, inadequate evaluation mechanisms, lack of clear exit options for investors and concerns regarding intellectual property rights protection.
• Systematic hurdles: Department of Biotechnology (DBT), used only 72% of its estimated budget allocation on Centrally Sponsored Schemes/Projects while the Department of Science and Technology (DST) used only 61% due to systemic issues like red tape, capacity constraints, and delays in project evaluation contribute to underutilization.
• Delay in funding: Due to lack of prioritisation for science funding by the Ministry of Finance or inadequate planning or implementation strategy for the requested funds by the Ministry of Science and Technology.
• Outdated curriculum: Curriculum in higher education is focused on rote learning and job oriented due to which many universities are unable to duly utilize the research grant provided to them. 
• Low priority: Lack of coordination between government agencies and a low political will to prioritise R&D expenses.
• Low contribution by private industries: Indian businesses contribute around $6.2 billion, which makes up 37% of the country's Gross Expenditure on Research and Development (GERD). This is different from the global pattern, where businesses usually contribute more than 65% of R&D spending.
• Minor role by higher education: HEIs play a comparatively minor role in the overall R&D investment, contributing 8.8% ($1.5 billion).

Government initiative:

• Anusandhan National Research Foundation (ANRF) Act: To provide high-level strategic direction for research, innovation, and entrepreneurship in the fields of natural sciences.
• Draft National Deep Tech Startup Policy (NDTSP): To address the challenges confronting deep tech startups through definitive policy interventions to create a conducive ecosystem.
• IMPRINT initiative: For bridging the gap between scientific knowledge base created through fundamental and applied research and fruitful translation of the same through engineering invention and technological innovation for the betterment of our society.
• Science, Technology, and Innovation Policy 2013: Increasing Gross Expenditure on R&D (GERD) to 2% GDP has been a national goal for some time.
• Zero-interest loan: In Interim Budget 2024, government announced a Rs 1 lakh crore fund to provide long-term, low-cost or zero-interest loans for research and development.
• Atal Tinkering Labs: To foster curiosity, creativity and imagination in young minds; and inculcate skills such as design mindset, computational thinking, adaptive learning etc. 
• Biotechnology Ignition Grant (BIG): Provides the right admixture of financial and mentoring and support to young startups and entrepreneurial individuals.
• Patent (Amendment) Rules, 2021: A rule establishing a feedback/complaint mechanism regarding issues related to the functioning of the IP offices has been set up on the IPO website and team will quickly respond to suggestions or complaints from people involved and send replies by email.

Way forward: 

• To fully realise the impact of R&D, it is crucial to assess the current research and development (R&D) funding landscape in India and its resulting output such as the number of patents granted, PhDs given out, and research papers published.
• Collaboration between the government, business enterprises and HEIs is essential to maximise the positive impact of science, technology, and innovation on economic growth and technological advancement.
• Need strong private enterprises involvement and stronger industry-academia collaboration, that will facilitate the transfer of knowledge and promote innovation.
• Learning from the R&D ecosystem in other developed countries while maintaining India’s strengths in streamlined decision-making and strategic alignment could be a powerful force to optimise its R&D landscape. India must implement policies that incentivize private companies to invest in R&D.
• A suitable oversight and monitoring mechanism may be formed to oversee the implementing sector- specific R&D mission programmes/ projects.
• Incentives for private investment, including relaxation of foreign direct investments, tax rebates, and clear regulatory roadmaps for products will help build investor confidence.
• Funds under PPP should be non- lapsable. An Innovation Development and Translation Board (IDTB) may be established to administer the fund for PPP in R&D. 
• Sign MoUs between S&T departments/labs/institutions and universities to facilitate collaborative and interdisciplinary R&D. 
• Intellectual Property (IP) should be exclusively licensed to the industry, and the Industry concerned will commercialize the product within a specified time scale.