R&D Expenditure Grows: Government Pushes for 2% of GDP
India aims to boost R&D spending up to 2% of GDP by 2047 to achieve its vision of Viksit Bharat. This involves creating an Ease of Doing R&D framework, offering tax incentives, and increasing funding for postdoctoral fellowships.
Highlights
- •- India intends to increase R&D expenditure to 2% of GDP.
- •- A structured assessment framework will evaluate the effectiveness of R&D institutions.
- •- Fiscal and CSR tax incentives are proposed to encourage private sector participation.
- •- The number of postdoctoral fellowships will be increased by 20% annually.
To accelerate its journey towards the vision of Viksit Bharat by 2047, India must significantly enhance its expenditure on research and development (R&D). According to Niti Aayog, a 6.3 percentage point increase from 0.64% of GDP is necessary within four to five years.
The increase aligns with the broader strategy to improve research quality, expedite technology development and translation, and bolster industry participation across the country's scientific institutions. This move underscores the government's commitment to creating globally competitive scientific environments through sustained effort and inter-governmental coordination.
Structuring R&D Initiatives for Success
To achieve these ambitious goals, Niti Aayog recommends establishing a structured Ease of Doing Research and Development (R&D) Assessment Framework. This framework will help evaluate the effectiveness of research institutions in supporting and enabling cutting-edge R&D activities.
In addition to fiscal incentives, tax provisions for Corporate Social Responsibility (CSR) funding, and streamlined government processes, the report suggests a collaborative approach between academia and industry. Specifically, it proposes increasing postdoctoral fellowships by 20% annually over several years, reducing 5% GST on R&D procurement, and introducing equity-based models to incentivize long-term research commitments.
By mandating government agencies with rigorous timelines for R&D proposals and direct grant transfers for extramural R&D, the plan aims to enhance efficiency in research funding. A centralized Centre for Technology Indigenization (CTI) will also be established to identify priority technologies for domestic development and support small and medium enterprises (MSMEs).
Moving forward, India seeks to transform from a follower to a leader in innovation through deliberate and strategic policy reforms.
