Status of R and D Expenditure in India

Context: India celebrates National Science Day on February 28 every year. The 2024 theme is “Indigenous Technologies for Viksit Bharat.”

About National Science Day

Why Is It Celebrated?

• National Science Day commemorates the announcement of the discovery of the “Raman Effect” by Sir Chandrasekhara Venkata Raman on February 28, 1928.
• C V Raman was honoured with the Nobel Prize in Physics in 1930 for this discovery, becoming the first Indian to win a Nobel Prize in the sciences.
• The “Raman Effect” is observed when light passes through a transparent material and its deflection results in a change in wavelength.
• The Indian government officially recognized February 28 as National Science Day in 1986, following a proposal by the National Council for Science and Technology Communication.

Significance of National Science Day

• Recognition of Science in Daily Life: The day emphasises the essential role that science plays in our everyday lives.
• Showcasing Scientific Endeavours: It is a platform to display the initiatives, efforts, and accomplishments of scientists for the betterment of humanity.
• Reflecting on Progress: Offers a moment to contemplate advancements in science and technology and to pinpoint areas needing further development.

Current Status of R&D Expenditure in India

• Decline in R&D Expenditure: India’s R&D spending has decreased to 0.64% of its GDP, down from 0.8% in 2008-2009 and 0.7% in 2017-2018.
• Government Concerns: Despite calls from within its ranks to double R&D spending, the Indian government has not yet achieved this goal.
• Comparison with Developed Countries: Most developed nations allocate between 2% and 4% of their GDP to R&D, with OECD member countries averaging 2.7%.

Goals for Enhanced R&D Investment

• National Targets: The 2013 Science, Technology, and Innovation Policy and the 2017-2018 Economic Survey have both emphasised the goal of raising Gross Expenditure on R&D (GERD) to 2% of GDP.
• Expert Recommendations: Specialists advocate for India to allocate at least 1%, ideally 3%, of its GDP to R&D annually until 2047 to significantly impact development.

Challenges in Raising R&D Funding

• Reliance on Public Funding: The majority of India’s R&D funding comes from public sources, indicating a nascent private investment landscape.
• Private Sector Contribution: In 2020-2021, the private sector accounted for 36.4% of GERD, with the government contributing 43.7%.
  • In developed countries, around 70% of R&D funding typically comes from private entities.
• Budget Underutilization: The Indian Ministry of Science and Technology often does not fully utilise its allocated R&D budget.
• Departmental Spending: The DBT utilised 72% of its budget, DST used 61%, and DSIR spent 69% of their respective allocations for centrally sponsored schemes in 2022-2023.

We’re now on WhatsApp. Click to Join

Steps Towards Sustainable R&D Funding

• Encouraging Private Sector Involvement: The Indian government aims to increase private sector contributions to R&D spending.
• Strategic Financial Planning: Addressing the under-spending and under-utilisation of R&D funds is crucial.
• Political Will: Enhanced political prioritisation of R&D is necessary for India’s growth, requiring action from both the Science Ministries and the Ministry of Finance.
• Incentivizing Private Investment: Providing tax rebates, easing FDI norms, and creating clear regulatory pathways can boost private investment in R&D.
• Bureaucratic Efficiency: There’s a need for improved bureaucratic processes to expedite grant approvals and disbursements.
• Monitoring and Evaluation: Strengthening the capacity for evaluating science projects and monitoring fund utilisation is essential.

Sharing is caring!