Boosting India’s R&D Ecosystem
Introduction
India currently ranks 39th on the Global Innovation Index 2024 which shows the underlying structural weaknesses in its research and development (R&D) ecosystem. Meanwhile, India stands as second-largest producer of STEM graduates highlighting its potential to become a global innovation hub.
Dimensions of the Article:
- Current State of India’s R&D Ecosystem
- Challenges in India’s R&D Ecosystem
- Government Initiatives
Current State of India’s R&D Ecosystem
- India’s spending on R&D remains critically low at 0.65% of GDP (2022), far behind global leaders such as China (2.43%), South Korea (4.93%), and Israel (5.56%).
- Advanced economies have consistently demonstrated that higher R&D investment correlates with stronger economic growth and technological competitiveness.
- For example, South Korea increased its R&D spending from 0.4% (1970) to 2.5% (1990), driving its transition from a developing to a developed economy.
- Similarly, China’s rise from 0.6% (1990s) to 2.4% today has fuelled its technological dominance.
- In contrast, India’s R&D ecosystem remains government-driven, with 36.4% of funding coming from the private sector in 2020–21.
- Key industrial sectors such as pharmaceuticals, chemicals, and automotive require deeper technological capabilities to compete with global players.
- Furthermore, deep-tech sectors like quantum computing, biotechnology, and nanotechnology remain underfunded.
Challenges in India’s R&D Ecosystem
- Low Private Sector Participation: The Indian government remains the primary driver of R&D, while the private sector lags in investment. This reduces the speed of technological innovation and commercialisation.
- Weak Industry-Academia Link: Unlike models like Stanford’s role in Silicon Valley, Indian universities and industries often operate in isolation, limiting the scope for collaborative innovation.
- Bureaucratic Hurdles: Research conducted by key government agencies like DRDO, ISRO, and BARC often fails to translate into commercial products due to procedural delays and administrative red tape.
- Limited Diversification: India’s R&D focus remains skewed towards defence and space, with limited investment in industrial R&D and consumer-focused technology.
- Risk Aversion: Indian industries prefer importing technology over investing in high-risk, early-stage research, which restricts long-term innovation potential.
Government Initiatives
The government has introduced several schemes to address these gaps:
- Vigyan Dhara Scheme – Supports research and technological development.
- Rashtriya Vigyan Puraskar (RVP) – Recognizes scientific contributions.
- Science, Technology, and Innovation Policy 2020 – Aims to create a more inclusive and dynamic R&D ecosystem.
- Anusandhan National Research Foundation (ANRF) – Allocated ₹1 lakh crore in the 2025–26 Union Budget to support deep-tech and innovative research.
Way Forward
- Increase R&D Spending: India must target spending over 2% of GDP on R&D in the next decade, with greater private sector participation.
- Strengthen Industry-Academia Link: Universities should play a more active role in upstream research, while industries should focus on converting research into commercial products.
- Streamline Project Management: ANRF should adopt the DARPA model with clear goals, transparent funding, and outcome-based evaluation.
- Promote Risk-Taking: Early-stage research requires flexibility and risk-taking to drive innovation breakthroughs.
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