In the news

• National Science Day is commemorated on Feb 28 every year to commemorate the birth anniversary of Sir CV Raman.

The Current Scenario: R&D Spending in India

• Low Expenditure: India’s expenditure on research and development (R&D) stands at a mere 0.64% of GDP, a concerning figure for a nation aspiring for technological advancement.
• Stagnant Growth: Despite calls to double R&D spending, India’s allocation for fundamental research has seen a decline in recent years, highlighting the need for enhanced investment in scientific endeavours.

Comparative Analysis with Developed Nations

• Global Benchmarks: Developed nations typically allocate 2-4% of their GDPs to R&D, showcasing a stark contrast to India’s minimal spending. Moreover, even Nations like South Korea have shown significant growth in R&D expenditures, averaging 10.9% annually over 2000–10 and 7.8% for 2010–19.
• Private Sector Contribution: In economically advanced countries, the private sector contributes significantly to R&D investment, unlike India, where public funding dominates. In leading economies, the corporate sector accounts for about two-thirds of gross domestic expenditure on R&D (GERD), while in India, its share is only 37%. This disparity highlights the need for increased private sector investment in R&D in India.

What is the significance of Sustainable Funding for India’s ‘Science Power’ Ambition?

• Low Corporate Sector Investment: The primary reason for India’s low R&D expenditure is the inadequate investment by the corporate sector. While leading economies see two-thirds of R&D funding coming from corporations, in India, this share is only 37%. Increasing corporate investment in R&D is essential to boost innovation and technological progress.
• Underestimation of GERD Data: There is evidence suggesting that India’s Gross Expenditure on R&D (GERD) data may be underestimated. The current method of data collection relies on surveys and secondary sources like annual reports and databases like Prowess. However, this method may not capture all R&D-performing enterprises, leading to incomplete statistics
• Foreign Investment Discrepancy: Foreign multinational corporations (MNCs) play a significant role in R&D spending in India. However, the latest statistics indicate that foreign MNCs’ R&D spending in India is only about 10% of what U.S. firms report spending in the country. Encouraging higher foreign investment in R&D can contribute to India’s scientific growth.
• Challenges in Data Collection: Collecting accurate data from the private corporate sector poses a challenge due to factors like firms’ reluctance to disclose information and the limitations of existing databases like DSIR and Prowess. Enhancing data collection methods is crucial to obtaining a comprehensive picture of R&D activities in the country.

Challenges Faced by India in Achieving ‘Science Power’ Ambition:

• Limited Research Workforce: India faces a shortage of high-quality universities and appropriate job opportunities for graduates, which impedes the expansion of its research workforce. To enhance scientific capabilities, there is a critical need to establish more top-tier educational institutions and create avenues for skilled professionals in the field.
• Bureaucratic Hurdles: The bureaucratic red tape in India poses a significant challenge to research and innovation. Delays in fund disbursement, lengthy recruitment processes, and administrative inefficiencies hamper the pace of scientific advancements. Streamlining administrative procedures and enhancing efficiency are essential to foster a conducive environment for research.
• Lack of International Collaboration: India has relatively low levels of international collaboration compared to other developing nations, limiting its exposure to global scientific advancements and partnerships. Strengthening ties with international counterparts can facilitate knowledge exchange, technology transfer, and collaborative research initiatives.
• Inadequate Funding: India’s R&D expenditure as a percentage of GDP is significantly lower than other emerging nations like China and Brazil, as well as established economies like the United States and Europe. Insufficient funding limits the capacity for research and innovation, hindering India’s progress in the scientific domain.
• Infrastructure and Technological Challenges: The development of cutting-edge technologies such as artificial intelligence and semiconductor manufacturing requires robust infrastructure and technological capabilities. India’s limited investment in science and technology, coupled with bureaucratic hurdles and outdated procurement systems, hinders the adoption of global best practices and impedes research progress.

Way forward

• Sustainable funding: India is committed in making progress towards becoming a developed country by 2047 through sustainable means, including R&D funding.
• Streamline bureaucracy: India needs to streamline its bureaucratic processes to enhance efficiency and reduce delays in funding and project approvals.
• Increase R&D spending: India aims to increase its Gross Expenditure on R&D (GERD) to 2% of GDP, which is a national goal for some time.
• Improve infrastructure and technology: India needs to improve its infrastructure and technological capabilities to drive innovation and research progress.
• Increase in International collaboration: India aims to increase its international collaboration to facilitate knowledge exchange, technology transfer, and collaborative research initiatives.

Conclusion

• As India commemorates National Science Day under the theme of sustainable development, addressing the imperative of sustainable funding for science emerges as a critical priority.
• By fostering a conducive ecosystem for R&D investment and optimizing budget utilization, India can pave the way for transformative scientific advancements and sustainable socio-economic progress.

Back2Basics: CV Raman and Raman’s Effect

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