Boosting R&D for India's Growth
For Prelims: Science, Technology, Engineering, and Mathematics (STEM), Global Innovation Index 2024, Deep-tech Startups, Quantum Computing, Semiconductors, Anusandhan National Research Foundation (ANRF), DRDO, ISRO, BARC.
For Mains: Challenges in India's R&D ecosystem and measures to address them.
Why in the News?
India is the second-largest producer of STEM graduates after China. However, despite this achievement, India ranks 39th on the Global Innovation Index 2024, far behind China (11th), highlighting the country's insufficient Research and Development (R&D) funding.
Key Highlights of India’s R&D Ecosystem
- R&D Funding Status: India allocated only 0.65% of its GDP to R&D in 2022, compared to China’s 2.43% and Brazil’s 1.15%.
- Need to Prioritize R&D:
- Economic Growth: R&D is vital for India to move beyond its lower-middle-income status and realize its full productivity potential.
- Industrial Development: Sectors like pharmaceuticals, chemicals, and automotive require technological advancements to stay competitive with developed and emerging economies.
- Deep-tech Startups: R&D is essential for startups in fields like quantum computing, biotechnology, robotics, and nanotechnology.
- Labor-Intensive Sectors: As labor costs rise, innovation such as automation, AI integration, and digital tools becomes necessary to enhance productivity and global competitiveness.
Global R&D Scenario:
- South Korea: In 1970, South Korea had a low income but increased its R&D spending from 0.4% to 2.5% of GDP by 1990, driving its rapid growth.
- China: R&D spending grew from 0.6% of GDP in the late 1990s to 2.4% today, paralleling the country's remarkable growth years.
Challenges in India’s R&D Ecosystem
- Low Investment: India's R&D spending is significantly lower than that of advanced economies like the US (3.46%), Japan (3.30%), Israel (5.56%), and South Korea (4.93%).
- Government-Centric R&D: Indian R&D still depends heavily on government funding and institutions. In 2020-21, the private sector contributed just 36.4% of total R&D funding.
- Weak Academia-Industry Link: Indian research institutions and industries work in silos, limiting innovation and interdisciplinary research. Unlike Stanford’s role in Silicon Valley, India lacks such collaborative models.
- Lack of Diversification: R&D efforts in India have traditionally focused on defense and space sectors, neglecting industrial R&D. For example, while missiles (Agni, BrahMos) have received significant attention, semiconductors remain underfunded.
- Preference for Imported Technology: Indian industries tend to favor importing technology, being risk-averse, while startups focus on IT and e-commerce instead of deep-tech innovation.
- Hurdles in Technology Transfer: Research by organizations like DRDO, ISRO, and BARC often does not translate into commercial products due to bureaucratic obstacles.
India’s R&D Initiatives
- Vigyan Dhara Scheme
- Rashtriya Vigyan Puraskar (RVP)
- Science, Technology, and Innovation Policy 2020
- VAIBHAV Fellowship
Reforms to Strengthen India’s R&D Ecosystem
- Increase R&D Investment: India should raise its R&D spending over the next decade, with a larger portion coming from the private sector.
- Leverage Anusandhan National Research Foundation (ANRF): Encourage private sector and philanthropic investment in R&D.
- Innovation Fund: The Union Budget 2025–26 proposes an innovation fund of Rs 1 lakh crore to support deep-tech R&D, which should be disbursed within 3–5 years.
- University-Led Research Model: Higher Education Institutions (HEIs) should lead upstream research and help industries commercialize technologies.
- Efficient Project Management: The ANRF can adopt the model of the US Defense Advanced Research Projects Agency (DARPA), employing efficient project management and transparent funding.
- Encourage Risk-Taking: Early-stage research often involves open-ended exploration, and while it may not always succeed, it is essential for future breakthroughs. The government should track such projects while allowing for some risk-taking.
Conclusion
India's economic future depends on a robust R&D ecosystem, industry-academia collaboration, and policy reforms. By boosting funding, fostering innovation in universities, and supporting risk-taking, India can escape the middle-income trap and emerge as a global leader in science and technology, driving economic growth and technological self-reliance.
Drishti Mains Question:
Analyze the challenges in India’s R&D ecosystem and suggest measures to enhance innovation-led growth.
UPSC Civil Services Examination, Previous Year Question (PYQ):
Prelims:
Q. Which of the following statements is/are correct regarding the National Innovation Foundation-India (NIF)? (2015)
- NIF is an autonomous body of the Department of Science and Technology under the Central Government.
- NIF is an initiative to strengthen highly advanced scientific research in India’s premier scientific institutions in collaboration with foreign scientific institutions.
Select the correct answer using the code given below:
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (a)
Mains:
Q. Discuss the growth and development of nuclear science and technology in India. What are the advantages of the fast breeder reactor program in India? (2017)
Q. Scientific research in Indian universities is declining because a career in science is not as attractive as business professions, engineering, or administration, and universities are becoming consumer-oriented. Critically comment. (2014)
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