India's R&D funding, breaking down the numbers
The announcement made in the interim Budget for 2024-25 about allocating a corpus of ₹1 lakh crore to enhance the research and innovation ecosystem in India has generated excitement among the scientific and research communities.
India's research and development (R&D) sector has experienced significant growth, as evidenced by the notable increase in Gross Expenditure on Research and Development (GERD) from ₹6,01,968 million in 2010-11 to ₹12,73,810 million in 2020-21. However, India's investment in research and development as a percentage of GDP stands at 0.64%, which places India behind major developed and emerging economies such as China (2.4%), Germany (3.1%), South Korea (4.8%), and the United States (3.5%).
- The NEP provides a broad direction and is not mandatory. Education is a concurrent subject, requiring collaboration between the central and state governments. The target for full implementation is set for 2040.
- Subject-wise committees, comprising members from relevant ministries at both levels, will develop implementation plans, outlining actions for various bodies, including the HRD Ministry, state Education Departments, and others. Progress will be jointly reviewed annually.
The salient features of the National Education Policy (NEP) 2020 include:
- The NEP 2020 proposes a new school curriculum that is more holistic and multidisciplinary. It also emphasizes the importance of early childhood education and foundational literacy and numeracy.
- The NEP 2020 proposes to open up the Indian higher education sector to foreign universities. This will allow students to access world-class education without having to leave India.
- The NEP 2020 proposes to discontinue the M Phil programme. This is in line with the global trend of moving towards a four-year undergraduate degree followed by a direct PhD programme.
- The NEP 2020 proposes to introduce multiple entry and exit options in undergraduate and postgraduate programmes. This will give students more flexibility and allow them to tailor their education to their needs.
- The NEP 2020 emphasizes the importance of research and innovation in higher education. It proposes to increase funding for research and to create a more supportive environment for researchers.
- The NEP 2020 aims to internationalize the Indian education system. It proposes to increase student and faculty mobility and to collaborate with foreign universities.
- While the NEP emphasizes teaching in the mother tongue or regional language "wherever possible," it is not mandatory for states.
- Private schools are unlikely to be forced to change their medium of instruction.
- The policy acknowledges multilingual families and encourages a bilingual approach for students whose home language differs from the medium of instruction.
- Single-stream institutions like IITs are already diversifying their offerings, including humanities and social sciences departments.
- This multidisciplinary approach aligns with global trends, ensuring graduates are well-rounded and equipped to address complex challenges.
- Both the NEP 2020 and SDG 4 aim to provide inclusive and equitable quality education for all.
- They emphasize improving the quality of education, enhancing learning outcomes, and ensuring access to education at all levels.
- SDG 4.5 focuses on eliminating disparities in access to education and promoting inclusive education.
- The NEP 2020 also emphasizes inclusive education by addressing the needs of diverse groups, including marginalized communities, children with disabilities, and those in remote areas.
- Both the NEP 2020 and SDGs prioritize gender equality in education.
- They aim to eliminate gender-based discrimination in education and promote equal opportunities for girls and boys in schools and higher education.
- SDG 4.2 emphasizes the importance of early childhood education and care.
- The NEP 2020 incorporates a similar focus by introducing a 5+3+3+4 structure that includes early childhood education, aligning with the SDG's goal of ensuring that all children have access to quality pre-primary education.
- Both the NEP 2020 and SDG 4. c emphasize the importance of adequately trained and qualified teachers.
- They promote continuous professional development for educators to improve the quality of teaching and learning.
- SDG 4.6 promotes lifelong learning opportunities for all. The NEP 2020 recognizes the need for lifelong learning by introducing a four-year multidisciplinary undergraduate program with multiple exit options, encouraging continuous skill development.
- SDG 4.7 encourages global citizenship education and values for sustainability.
- While the NEP 2020 does not explicitly mention this goal, its emphasis on critical thinking, experiential learning, and holistic development aligns with the idea of nurturing responsible global citizens.
- SDG 17 calls for global partnerships to achieve the SDGs. The NEP 2020 acknowledges the importance of collaboration between various stakeholders, including governments, civil society, and international organizations, to implement education reforms effectively.
- Although the primary focus of the NEP is on education, it indirectly contributes to SDG 13 (Climate Action) and other environmental goals by promoting environmental awareness, sustainability education, and holistic development that includes a sense of responsibility towards the environment.
2. Research Output and Innovation in India
Despite the comparatively lower share of GDP dedicated to Research and Development (R&D), India has emerged as a powerhouse in producing academic talent. Annually, India generates an impressive 40,813 PhDs and ranks third globally, following the United States and China. This achievement reflects India’s commitment to fostering intellectual capital and contributing significantly to global research endeavours.
Robust Research Ecosystem and Global Impact
India’s research output remains substantial, ranking third globally with over 3,00,000 publications in 2022. This highlights the nation’s robust research ecosystem and its commitment to advancing knowledge across diverse fields. Additionally, India demonstrates commendable performance in patent grants, securing the sixth position globally with 30,490 patents granted in 2022. While this figure is lower compared to the U.S. and China, it underscores India’s evolving innovation landscape and its potential for further growth in intellectual property creation.
Sector-wise Contribution to GERD
In India, Gross Expenditure on Research and Development (GERD) is primarily driven by the government sector, including the central government (43.7%), State governments (6.7%), Higher Education Institutions (HEIs) (8.8%), and public sector industry (4.4%). Surprisingly, the private sector industry contributes only 36.4% during 2020–21. Collaboration between the government, business enterprises, and HEIs is essential to maximize the positive impact of science, technology, and innovation on economic growth and technological advancement.
3. Investment in Research and Development (R&D) in India
According to the R&D statistics (2022-23) of the Department of Science and Technology, India’s total investment in R&D reached $17.2 billion in 2020-21. This significant investment underscores the nation's commitment to fostering scientific advancements and innovation.
Government Sector Dominance in R&D Funding
Within this sum, 54% ($9.4 billion) is allocated to the government sector, primarily utilized by four key scientific agencies the Defence Research and Development Organisation (30.7%), the Department of Space (18.4%), the Indian Council of Agricultural Research (12.4%), and the Department of Atomic Energy (11.4%). Government funding plays a pivotal role in driving strategic R&D initiatives through autonomous laboratories operated by the government.
Challenges in Private Sector Contribution
However, the contribution of private industries lags behind that of many other economies. At approximately $6.2 billion, Indian businesses represent 37% of the country’s Gross Expenditure on Research and Development (GERD), contrasting the global trend where business enterprises typically contribute over 65% of R&D. Stronger industry-academia collaboration and increased private sector involvement are crucial to fostering innovation and knowledge transfer.
Role of Higher Education Institutions (HEIs)
HEIs play a comparatively minor role in overall R&D investment, contributing 8.8% ($1.5 billion). While HEIs are centres of knowledge and research, enhancing their participation in R&D requires concerted efforts in promoting research partnerships and technology transfer.
The Need for Policy Reforms and Collaboration
Addressing the challenge of low private sector contribution to R&D requires a multi-pronged approach involving diverse stakeholders. Policy reforms that incentivize private companies to invest in R&D, promote industry-academia collaboration, and facilitate knowledge transfer are essential. Learning from successful R&D ecosystems in other developed countries while leveraging India's strengths in strategic decision-making can optimize the nation's R&D landscape, fostering economic growth and competitiveness.
4. Comparison of India's R&D landscape with some major countries
India's research and development (R&D) efforts can be compared with other countries based on several key metrics such as investment, output, and innovation.
Investment in R&D
- India: India's investment in R&D has been growing steadily but remains relatively low compared to other major economies. As of recent data, India's investment in R&D as a percentage of GDP stands at around 0.64%.
- United States: The U.S. is one of the global leaders in R&D investment. It consistently invests over 2.5% of its GDP in R&D, with significant contributions from both the public and private sectors.
- China: China has made substantial strides in R&D investment, allocating around 2.4% of its GDP to R&D. Its investment has grown rapidly over the years, contributing to its emergence as a global innovation hub.
- India: India has seen remarkable growth in research output, particularly in terms of publications and patents. It ranks third globally in the number of PhDs produced annually and has a significant number of research publications across various fields.
- United States: The U.S. leads in research output across multiple disciplines. It produces a vast number of research papers, secures numerous patents, and leads in scientific advancements and discoveries.
- China: China has also witnessed a surge in research output, with a notable increase in publications, patents, and scientific collaborations. It has become a major contributor to global scientific knowledge.
Innovation Ecosystem
- India: India's innovation ecosystem is evolving, with initiatives such as the National Innovation and Startup Policy aimed at fostering entrepreneurship and innovation. However, challenges like low private sector investment and limited industry-academia collaboration persist.
- United States: The U.S. is renowned for its robust innovation ecosystem, driven by strong research institutions, venture capital investments, and a culture that encourages risk-taking and entrepreneurship.
- China: China has rapidly developed its innovation ecosystem, focusing on areas like technology, artificial intelligence, and green energy. It has attracted significant investment in innovation and has emerged as a global leader in certain technology domains.
Government Support and Policies
- India: The Indian government has taken steps to promote R&D through initiatives like tax incentives, research grants, and collaborations with international partners. However, more efforts are needed to increase R&D spending and strengthen industry-academia partnerships.
- United States: The U.S. government plays a pivotal role in funding research through agencies like the National Institutes of Health (NIH), National Science Foundation (NSF), and Department of Defense (DoD), among others.
- China: The Chinese government has implemented various policies and funding mechanisms to support R&D and innovation, contributing to the country's rapid technological advancements.
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5. Impact of Initiatives on India's R&D Landscape
India’s technological and manufacturing aspirations necessitate a transformative shift in its Research and Development (R&D) landscape, calling for a dual strategy to enhance private sector involvement and strengthen academia’s research infrastructure. Several recent initiatives demonstrate India's commitment to fostering innovation and technological progress.
National Deep Tech Startup Policy (NDTSP)
Initiatives like the NDTSP highlight India’s dedication to technological advancement and innovation. By incentivizing private sector engagement in R&D, this policy has the potential to bridge existing gaps and unlock untapped markets. Despite challenges such as time and technical uncertainties in Deep Tech creation, allocating resources to protect intellectual property and overcome technical obstacles can lead to significant market opportunities.
Anusandhan National Research Foundation (ANRF) Act
The recent enactment of the ANRF Act underscores the government’s commitment to catalyzing research and innovation as pillars of development. This legislative move aims to strengthen scientific research across the nation and promote a robust research culture within Higher Education Institutions (HEIs). Challenges such as equitable fund distribution and fostering interdisciplinary collaborations need to be addressed to ensure the Act's success and uphold global standards.
Elevating R&D Spending and Private Sector Involvement
These initiatives are poised to elevate R&D spending in India while providing strategic guidance for research, innovation, and entrepreneurship. By encouraging greater private sector involvement and aligning research efforts with market needs, India aims to position itself as a leader in emerging industries. The combination of initiatives like the interim Budget, NDTSP, and ANRF Act reflects India’s commitment to incentivizing private sector-led research and innovation, driving economic growth and competitiveness in key sectors.
6. Conclusion
India's R&D landscape shows promising growth potential but requires sustained efforts, policy reforms, and collaborative initiatives to bridge existing gaps, enhance innovation, and strengthen its position in the global research and development arena.
