India’s Rs 1 Lakh Crore R&D Boost Set to Transform Nation's Innovation Landscape
NOIDA: The interim Budget for 2024–25 has made a historic announcement with the allocation of a Rs 1 lakh crore corpus for research and development (R&D), marking a pivotal step in India’s journey towards becoming a global leader in innovation. This large-scale investment is expected to propel advancements across diverse fields such as technology, healthcare, academia, and the environment, while building a robust scientific community capable of pioneering groundbreaking discoveries.
The strategic infusion of funds is seen as a move to strengthen India’s position in the global research ecosystem, potentially attracting global talent and fostering international collaborations. It underscores the government’s commitment to innovation-led development and highlights the critical role R&D plays in driving the nation's progress.
Broadening the Scope of R&D Funding
A key aspect of this announcement is the potential broadbasing of R&D funding. While large universities typically dominate the landscape of funded research, smaller research centres, often housing brilliant minds, remain underfunded. With the allocation of Rs 1 lakh crore, there is hope that these institutions will receive equitable financial support, allowing them to contribute to the nation's innovation and technological growth.
By democratising access to R&D funding, the government can empower researchers and students in less-established institutions, forming what is being termed the "Bharat opportunity." This inclusive approach could spur innovation across various fields and regions, contributing to more balanced national development.
Leading India Towards Viksit Bharat 2047
As India sets its sights on achieving the transformative vision of Viksit Bharat 2047, robust investments in R&D are emerging as a cornerstone. Currently, India’s gross expenditure on R&D (GERD) stands at 0.7 percent of its GDP—well below the global average of 1.8 percent. Comparatively, the US spends 2.8 percent of its GDP on R&D, while South Korea leads with 4.5 percent. Moreover, India’s private sector contribution to GERD is 37 percent, significantly trailing the US (68 percent) and China (75 percent).
To bridge this gap, India must foster increased private sector participation in research initiatives. With the global race for dominance in frontier technologies—such as artificial intelligence, machine learning, semiconductors, and quantum computing—India has a unique opportunity to leapfrog traditional developmental stages and position itself as a leader in cutting-edge innovations.
Augmenting Employment Through R&D
Beyond technological advancements, R&D investment has a direct impact on employment generation. A well-funded R&D ecosystem creates jobs across various levels, from research assistants and engineers to technicians and project managers. Furthermore, research-driven innovation can lead to the creation of startups and new enterprises, driving entrepreneurial growth and job creation across the nation.
By fostering a culture of innovation and entrepreneurship, India can empower young minds to develop solutions that address both local and global challenges. A thriving R&D ecosystem, supported by substantial investment, will be instrumental in creating the workforce of the future.
The Road Ahead: Enhancing R&D for National Growth
Research and development remain the backbone of progress across disciplines. By increasing funding and encouraging greater participation from a diverse range of institutions, India can build a knowledge-driven economy that benefits all citizens. Fresh perspectives from under-represented institutions could unlock innovative solutions to some of the nation’s most pressing challenges.
Prof. Rajesh Sahay, Chairman of Hierank Business School, Noida
