Q. Consider the following statements:
Statement-I: The current gross domestic expenditure on research and development (R&D) in India is below 0.7% of GDP.
Statement-II: There is lack of required private sector investment in research and development (R&D) in India.
Which one of the following is correct in respect of the above statements?

[A] Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

[B] Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

[C] Statement-I is correct but Statement-II is incorrect

[D] Statement-I is incorrect but Statement-II is correct

Answer: A
Notes:

Explanation –

Statement I: According to World Bank data, India’s gross domestic expenditure on research and development (R&D) has been around 0.7% of GDP in recent years, which is a low number compared to many developed and developing economies.

Statement II: Private sector investment in R&D is crucial for innovation and technological advancement. In India, a significant portion of R&D funding comes from the government sector, while private sector participation remains relatively low. This lack of private investment contributes to the overall low national expenditure on R&D.

Therefore, Statement II explains the reason behind the situation described in Statement I.

Source: The Hindu

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