Expenditure on Research and Development in India

The announcement in the interim Budget for 2024-25, of a corpus of Rs 1 lakh crore
to bolster the research and innovation ecosystem within the country, has sparked
enthusiasm within the scientific and research communities. The decision to rebrand
the slogan, ‘Jai Jawan Jai Kisan’ to ‘Jai Jawan, Jai Kisan, Jai Vigyan’ to now ‘Jai
Jawan, Jai Kisan, Jai Vigyan, Jai Anusandhan’ (by the present Prime Minister) is
intended to reinforce the foundation of research and innovation for development.
What Are the Different Positive Aspects of R&D Funding in India?
 Powerhouse in Producing Academic Talent:
o Despite the comparatively lower share of GDP dedicated to R&D, 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. This achievement reflects India’s commitment to fostering
intellectual capital and contributing significantly to global research
endeavours.
 Additionally, India’s research output remains substantial, ranking third
globally, with over 3,00,000 publications in 2022, highlighting the
nation’s robust research ecosystem and its commitment to advancing
knowledge across diverse fields.
 Commendable Performance in Patent Grants:
o India also 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.
 Emphasis on Autonomous R&D Laboratories and Institutions:
o A significant portion of R&D funding originates from the government, with
considerable allocation directed towards autonomous R&D laboratories
operated by the government. These laboratories serve a pivotal role in
driving research and technology development with strategic implications.
 According to the R&D statistics (2022-23) of the Department of
Science and Technology, India’s total investment in R&D reached
USD17.2 billion in 2020-21. Within this sum, 54% (USD 9.4 billion) is
allocated to the government sector and predominantly utilised by four
key scientific agencies:
  The Defence Research and Development Organisation
(DRDO) (30.7%), the Department of Space (18.4%), the Indian
Council of Agricultural Research (ICAR) (12.4%), and the
Department of Atomic Energy (11.4%).
 Provisions in Interim Budget 2024-25:
o A corpus of Rs.1 lakh crore to be established with fifty-year interest free
loan to provide long-term financing or refinancing with long tenors and low
or nil interest rates. A new scheme to be launched for strengthening deep-
tech technologies for defence purposes and expediting 'atmanirbharta' is also
mooted.
What Are the Different Concerns in R&D Funding in India?
 Low R&D Investment as Percentage of GDP:
o India’s R&D is witnessing significant growth, with a notable increase in
Gross Expenditure on Research and Development (GERD) from Rs
6,01,968 million in 2010-11 to Rs 12,73,810 million in 2020-21.
o However, with R&D investment as a percentage of Gross Domestic
Product (GDP) standing at 0.64%, 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%).

 Less Contribution by Private Sector:

o In India, 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 the public sector industry (4.4%), with the
private sector industry contributing only 36.4% during 2020–21.
 The reasons for the reduction in R&D spending despite the government
being cognizant of the need to increase it are not clear, but may stem
 from a lack of coordination between government agencies and a need
for stronger political will to prioritise R&D expenses.
o Private Sector Contribution in Developed Economies:
 The contribution of private industries lags behind that of many other
economies. At approximately USD 6.2 billion, Indian businesses
represent 37% of the country’s GERD, in contrast to the global trend,
where business enterprises typically contribute over 65% of R&D.
 In leading innovative economies such as China, Japan, South Korea,
and the U.S., a significant portion (>70%) of R&D funding is from
private industries, driven by market forces and profit motives, and the
actual R&D activities are conducted in the Higher Educational
Institutions (HEIs).
 Under-Utilisation of Allocated Funds:
o In 2022-2023, the Department of Biotechnology (DBT), used only 72% of
its estimated budget allocation on Centrally Sponsored Schemes
(CSSs)/Projects while the DST used only 61%. The Department of
Scientific and Industrial Research (DSIR), which receives the lowest
allocation for CSSs, spent 69% of its allocation.
 The reasons for under-utilisation, as with the under-allocation, are
unclear and may indicate tedious bureaucratic processes for approving
disbursements, lack of capacity to evaluate projects or clear utilisation
certificates, 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.
 State Governments not Allocating Adequate Funds:
o The RBI’s report, State Finances: A Study of Budgets of 2023-24, had a
section devoted to the r&d spending of the State governments. The study
covered only 10 out of 36 States and Union Territories implying that
research is not a priority for most States. The annual spending on research
was also quite small in most States (0.09% of the GSDP on average),
though Rajasthan emerged an outlier.
What are the Various Steps Needed to Enhance R&D Funding in India?
 Encouraging Private Sector Collaboration:
o India’s R&D ecosystem has its advantages in terms of efficiency, but could
benefit more from strong private enterprises involvement and stronger
industry-academia collaboration, facilitating knowledge transfer and
fostering innovation.
 The 2013 Science, Technology, and Innovation Policy noted that
“Increasing Gross Expenditure on R&D (GERD) to 2% GDP has been
a national goal for some time”. The 2017-2018 Economic Survey
reiterated this in its chapter on science and technology transformation.
 Incentives for private investment, including relaxation of foreign
direct investments (FDIs), tax rebates, and clear regulatory roadmaps
for products will help build investor confidence.
 Increasing R&D Expenditure as Percentage of GDP:
o The significance of research and innovation cannot be overstated in fuelling
economic growth, technological advancement, and global competitiveness.
 However, to fully realise the impact, it is crucial to assess the current R&D
funding landscape in India and its resulting output.
o In 2021, member-countries of the Organisation for Economic Co-
operation and Development (OECD) on average spent 2.7% of GDP on
R&D. The U.S. and the U.K. have consistently spent more than 2% of their
GDPs on R&D for the past decade.
 So, many experts have called for India to spend at least 1%, but
ideally 3%, of its GDP every year until 2047 on R&D for science to
have a meaningful impact on development.

 Ensuring the Increased Role for HEIs in India:

o HEIs in India play a comparatively minor role in the overall R&D
investment, contributing 8.8% (USD 1.5 billion). It is important to recognise
that increasing industry contribution to R&D is a complex issue with no
single solution. A multi-pronged approach involving diverse stakeholders is
necessary to address the challenges and unlock the potential of R&D for
India’s economic growth and competitiveness through HEIs.
 Bridging the Gaps Between India’s Manufacturing Reality and Aspirations:
o India’s technological and manufacturing aspirations hinge on a
transformative shift in its R&D landscape. Closing the existing gap
demands a dual strategy: encouraging private sector involvement and
fortifying academia’s research infrastructure.
 Initiatives such as the National Deep Tech Startup Policy
(NDTSP) signal a strong commitment to technological progress and
innovation. This policy holds the potential to incentivise private sector
engagement in India’s R&D ecosystem.
  Despite the substantial time and technical uncertainties involved
in Deep Tech’s creation, allocating resources to safeguard
intellectual property and tackle technical obstacles can unlock
untapped markets.
 The recent enactment of the Anusandhan National Research
Foundation (ANRF) Act, 2023 underscores the government’s
dedication to catalyzing research and innovation as the cornerstone of
development.
 This legislative move will bolster scientific research nationwide. The
Act aims to bridge India’s persistent R&D investment gap while
nurturing a robust research culture within HEIs.
 Although promising, this initiative must surmount challenges
such as ensuring equitable fund distribution, fostering
interdisciplinary collaborations, and upholding global
standards.
 Mandating Proper Utilization of Allocated Funds:
o The Union Ministry of Science and Technology has consistently under-
utilised its budget, so while the calls for increased funding – through both
government and private sources – are legitimate, a strengthened budget
utilisation is also required to affect science outcomes.
 Mitigating the under-spending and under-utilisation of funds
earmarked for R&D stand out as obvious first steps. This, in turn,
requires the political prioritisation of R&D spending and recognition of
it as a core, irreplaceable element of India’s growth journey.
 Finally, India also needs the bureaucratic capacity to evaluate science
projects and, after allocations, monitor utilisation. Building such
capacity is a prerequisite for India becoming a science power by 2047.
 Prioritizing Expenditure Through State Governments:
o Public sector R&D expenses need to increase especially at the State level, if
only to improve the quality of research facilities at State universities that are
in turn tied to the freedom researchers have to work on more locally
relevant problems.
o Expenditure also needs to increase to the extent that, with suitable policies,
it relieves the persistent bottleneck of research graduating from the lab
bench to the factory floor. Innovation is of little value without this flow, and
will be restricted to low-quality advancements.
Conclusion
Governmental efforts are poised to elevate R&D spending in India, providing strategic
guidance for research, innovation, and entrepreneurship while encouraging greater
private sector involvement. While India's R&D sector shows significant growth, its
low investment in R&D as a percentage of GDP compared to major economies
remains a concern. The interim Budget, 2024-25 combined with the NDTSP and
ANRF Act,2023 sends positive signals regarding India’s commitment to incentivising
private sector-led research and innovation, particularly in burgeoning industries.
This above content is based on “India’s R&D funding, breaking down the numbers” which was
published in The Hindu on 14/03/2024. The article explores the notable growth in India's research
and development (R&D) sector, highlighted by a significant increase in Gross Expenditure on
Research and Development (GERD). Despite this growth, India lags behind major developed and
emerging economies due to its low investment in R&D as a percentage of GDP.

Atmanirbhar Bharat
Atmanirbhar Bharat (Self-Reliant India) is an initiative by the Indian government
aimed at making the country self-sufficient across various sectors. Launched by Prime
Minister Narendra Modi in May 2020, the campaign focuses on reducing dependency
on imports, promoting domestic manufacturing, and encouraging innovation and
investment within India. The key pillars of Atmanirbhar Bharat include economic
growth, infrastructure, technology-driven systems, vibrant demography, and demand-
driven strategies.
The initiative gained momentum during the COVID-19 pandemic, which highlighted
the importance of domestic production and resilient supply chains. Under
Atmanirbhar Bharat, India has rolled out policies and incentives to support local
industries, startups, and entrepreneurs, while promoting sectors like defense,
healthcare, and digital technology. Through this movement, India aims to become a
major global manufacturing hub, fostering sustainable growth, job creation, and
stronger economic resilience.
Key Pillars of Atmanirbhar Bharat
The initiative is structured around five primary pillars:
1. Economy: Aiming to boost growth by scaling up India’s economic capacity
and turning the country into a hub for large-scale production. The vision for the
economy is to encourage massive scale production and support infrastructure
that can aid both domestic and export markets.
2. Infrastructure: Building modern, resilient infrastructure to facilitate growth
and enable seamless movement of goods, services, and resources across the
 country. Infrastructure development is seen as a critical factor in enhancing
productivity and attracting foreign investment.
3. Technology-driven Systems: Focusing on reforming existing systems through
technology to improve efficiency, transparency, and accountability. This pillar
encourages the adoption of digital technologies in sectors like education,
healthcare, and finance, while also promoting digital literacy.
4. Vibrant Demography: Leveraging India’s youthful, diverse, and dynamic
population to drive innovation, skill development, and a strong labor force.
This includes creating employment opportunities for the youth, empowering
women, and ensuring inclusion of all sections of society.
5. Demand: Stimulating domestic demand to encourage businesses to grow,
innovate, and increase their capacity. The focus is on enhancing the purchasing
power of consumers, which will drive demand for locally produced goods and
services.
Key Sectors and Focus Areas
Atmanirbhar Bharat focuses on various sectors where self-reliance can be fostered to
reduce dependence on imports and enhance domestic capabilities. Some of the most
significant sectors include:
 Defense: Boosting domestic production of defense equipment to reduce
reliance on imports and strengthen national security.
 Manufacturing: Encouraging local manufacturing across a wide range of
sectors, including electronics, pharmaceuticals, and automotive, to make India
a global manufacturing hub.
 Agriculture: Reforms in agriculture aim to increase productivity, improve
supply chains, and provide farmers with better access to markets and
technology.
 Healthcare: Increasing investment in healthcare infrastructure, medical
research, and pharmaceutical manufacturing to achieve self-sufficiency in
critical medical supplies.
 Digital and Technology: Promoting digital payments, online education, e-
governance, and innovation in technology to modernize India’s digital
ecosystem.
Key Schemes and Initiatives under Atmanirbhar Bharat
1. Production Linked Incentive (PLI) Scheme: This scheme incentivizes
companies to increase their manufacturing capacity in India, especially in high-
priority sectors like electronics, pharmaceuticals, and automobiles. By linking
 incentives to production levels, it seeks to attract investment and increase
India's share in the global supply chain.
2. MSME Support: Micro, Small, and Medium Enterprises (MSMEs) are central
to the Atmanirbhar Bharat mission as they constitute a significant part of the
Indian economy. The government has announced various measures, including
collateral-free loans, to support MSMEs and encourage their growth.
3. Agricultural Reforms: The initiative includes structural reforms aimed at
modernizing agriculture, improving storage facilities, and encouraging the
adoption of better farming practices. The reforms also focus on improving
farmers’ income by enhancing their access to markets.
4. Digital India Initiatives: The Digital India program aligns with Atmanirbhar
Bharat by promoting digital literacy, financial inclusion, and the development
of a robust digital infrastructure. The goal is to transform India into a
knowledge economy.
5. Vocal for Local: This campaign within Atmanirbhar Bharat encourages
consumers to choose locally produced goods. The goal is to promote
indigenous brands and increase consumer awareness about the importance of
supporting domestic industries.
Goals and Impact of Atmanirbhar Bharat
 Economic Growth and Job Creation: By promoting local industries,
Atmanirbhar Bharat aims to create millions of jobs and stimulate economic
growth, potentially making India one of the world’s largest economies.
 Reducing Import Dependency: India aims to become more self-reliant in key
sectors like electronics, defense, and pharmaceuticals, thereby reducing its
dependence on imports and strengthening national security.
 Strengthening Export Potential: The initiative also seeks to increase India's
export potential by making products that are competitive in quality and price.
Enhanced domestic production and robust infrastructure will help India become
a reliable global supplier.
 Boosting Innovation and R&D: By incentivizing research and development,
the initiative seeks to encourage innovation across sectors. This focus on R&D
is crucial to ensure that India stays competitive in a rapidly evolving global
economy.
 Resilience Against Global Shocks: The COVID-19 pandemic exposed
vulnerabilities in global supply chains. Atmanirbhar Bharat aims to build
resilience by promoting domestic production, reducing dependency on global
supply chains, and encouraging a more self-sustained economy.
Criticisms and Challenges
While Atmanirbhar Bharat is ambitious, it faces challenges and criticisms. Some
critics argue that a heavy focus on self-reliance might lead to protectionism, reducing
competition and innovation. Additionally, creating an efficient and globally
competitive manufacturing ecosystem will require extensive reforms in labor laws,
land acquisition policies, and infrastructure development, which are long-term efforts.
The initiative also faces challenges in ensuring that MSMEs and rural enterprises have
adequate access to technology, capital, and skilled labor.

Impacting Research Innovation and Technology (IMPRINT - II)

IMPacting Research INnovation and Technology (IMPRINT II), a joint programme of
Ministry of Human Resource Development (MHRD) and Department of Science &
Technology (DST) (steered by Science and Engineering Research Board, SERB) is
aimed to address major engineering challenges that the country must address and
champion to enable, empower and embolden the nation for inclusive growth and self-
reliance. This is a unique technology development initiative of the Government of
India for translation of research knowledge into viable technology (products and
processes). The entire gamut of activities was divided into ten identified domains
namely, Advanced Materials (AM), Energy (EN), Environment &Climate change
(EC), Healthcare (HC), Information &Communication Technology (IT),
Manufacturing (MT), Nanotechnology hardware (NT), Security & Defence (SD),
Sustainable Habitat (SH) and Water &River Systems (WR).

The Council of Scientific and Industrial Research (CSIR)

The Council of Scientific and Industrial Research (CSIR) is one of India’s largest and
most diverse research organizations, with over 38 labs across the country focusing on
various scientific and technological fields. Each lab specializes in specific areas,
ranging from biotechnology and pharmaceuticals to environmental science and
engineering. Here’s a detailed overview of activities in some of the key CSIR labs
across India:
1. CSIR-Central Drug Research Institute (CDRI), Lucknow
 Focus: Drug discovery and development
 Activities: CDRI conducts extensive research in drug discovery for diseases
such as malaria, tuberculosis, diabetes, and cancer. The lab works on finding
new therapeutic agents from natural products and synthetic sources, advancing
knowledge on pharmacology, and innovating new formulations and delivery
 mechanisms. It has developed several drugs that are now in clinical use and
collaborates with industry to move its research to commercial products.
2. CSIR-Central Electrochemical Research Institute (CECRI), Karaikudi
 Focus: Electrochemical research and applications
 Activities: CECRI’s work encompasses electrochemical energy systems,
corrosion science, and electrochemical materials. This includes developing
advanced batteries, fuel cells, and supercapacitors, which are crucial for clean
energy solutions. It also focuses on electrode materials, corrosion monitoring
systems, and environmental protection using electrochemical techniques.
CECRI’s research supports the renewable energy sector, particularly in grid
energy storage and electric vehicle battery solutions.
3. CSIR-Institute of Genomics and Integrative Biology (IGIB), Delhi
 Focus: Genomics, molecular medicine, and bioinformatics
 Activities: IGIB’s research spans genomic science, including human genomics,
genetic disorders, and computational biology. The lab was instrumental in
decoding the SARS-CoV-2 genome in India, contributing to COVID-19
research. IGIB also works on genomic databases, diagnostics, and precision
medicine, focusing on chronic diseases like diabetes and respiratory illnesses.
The lab collaborates with healthcare providers for translational research to
bring genomics to medical applications.
4. CSIR-National Chemical Laboratory (NCL), Pune
 Focus: Chemical sciences, polymers, and catalysis
 Activities: NCL’s work spans chemical synthesis, polymer science, material
science, and catalysis. It has contributed significantly to green chemistry and
sustainable chemical processes, especially in areas like drug discovery and
material innovation. The lab focuses on clean energy solutions, such as carbon
capture, and developing sustainable plastics and polymers. NCL also
collaborates with the chemical industry, providing R&D support and
technology transfer.
5. CSIR-Central Food Technological Research Institute (CFTRI), Mysore
 Focus: Food science and technology
 Activities: CFTRI’s research covers food processing, food safety, and value
addition for agricultural products. The lab develops technologies for safe and
efficient food processing, food packaging, and nutritional enhancement. CFTRI
works on fortifying foods to address nutritional deficiencies, innovations in
dairy and cereal processing, and food waste reduction. It provides technological
 support to food processing industries and plays a critical role in food safety and
quality assurance.
6. CSIR-Indian Institute of Petroleum (IIP), Dehradun
 Focus: Petroleum and hydrocarbon research
 Activities: IIP works on enhancing the efficiency of petroleum refining
processes, developing alternative fuels, and advancing petrochemical
technologies. The lab is engaged in biofuel research, such as producing
biodiesel from non-edible oils and converting biomass into fuel. IIP’s
innovations aim to make petroleum-based energy more sustainable and
efficient, with a focus on environmental impact reduction and alternative
energy research.
7. CSIR-Central Institute of Mining and Fuel Research (CIMFR), Dhanbad
 Focus: Mining, fuel research, and energy
 Activities: CIMFR focuses on safe mining practices, clean coal technologies,
and the efficient use of energy resources. Its research includes coal
beneficiation, extraction techniques, and pollution control technologies for
mining industries. The lab is involved in coal gasification, coal-to-liquid fuels,
and ensuring environmental compliance in mining. CIMFR’s work supports
India’s energy sector, particularly in efficient coal use and reducing the
ecological impact of mining.
8. CSIR-Structural Engineering Research Centre (SERC), Chennai
 Focus: Structural engineering and earthquake engineering
 Activities: SERC specializes in designing structures to withstand
environmental stresses like earthquakes and cyclones. The lab researches
earthquake-resistant construction materials, develops simulation models for
structural analysis, and provides consultancy services to infrastructure projects.
SERC’s work is critical for creating resilient structures for urban infrastructure,
bridges, and buildings, ensuring safety and stability against natural disasters.
9. CSIR-Central Road Research Institute (CRRI), Delhi
 Focus: Road transportation and infrastructure
 Activities: CRRI conducts research to improve road safety, traffic
management, and transportation infrastructure. The lab studies pavement
materials, designs sustainable roads, and innovates in traffic monitoring and
control systems. CRRI’s work supports national highway projects and provides
R&D for urban mobility solutions, aiming to enhance road safety, reduce
congestion, and support smart city initiatives.
10. CSIR-National Aerospace Laboratories (NAL), Bangalore
 Focus: Aerospace research and technology development
 Activities: NAL is involved in aerospace engineering, including aerodynamics,
flight testing, and advanced materials for aircraft. NAL develops technologies
to enhance India’s aviation capabilities, such as lightweight materials, avionics,
and UAV (unmanned aerial vehicle) systems. The lab collaborates with the
Indian aerospace and defense sectors to design indigenous aircraft and
strengthen India’s self-reliance in aviation technology.
11. CSIR-North East Institute of Science and Technology (NEIST), Jorhat
 Focus: Natural resources and biotechnology in the northeastern region
 Activities: NEIST’s work supports sustainable development in India’s
northeastern states. It focuses on medicinal plant research, bioresource
utilization, and agro-technology development tailored to the region’s unique
biodiversity. The lab works on environmental protection, water resource
management, and low-cost building materials. NEIST collaborates with local
industries and tribal communities to promote economic development and
sustainable agriculture.
12. CSIR-National Botanical Research Institute (NBRI), Lucknow
 Focus: Plant biology, biotechnology, and environmental research
 Activities: NBRI specializes in botanical research, including plant genetics,
environmental remediation, and biodiversity conservation. The lab conducts
extensive research on medicinal plants, genetic modification, and climate-
resilient crops. NBRI’s projects aim to conserve plant biodiversity and promote
eco-friendly agricultural practices, benefiting both farmers and the
environment.
13. CSIR-Central Leather Research Institute (CLRI), Chennai
 Focus: Leather technology and sustainable practices
 Activities: CLRI supports India’s leather industry, working on eco-friendly
tanning, leather processing, and developing synthetic alternatives. The lab
focuses on pollution control in leather manufacturing, waste management, and
creating high-quality leather products. CLRI collaborates closely with the
leather industry to improve sustainability, quality, and exports, making India a
global leader in leather production.