[Answered] Examine how the ‘great Indian research deficit’ hampers the realization of its strategic and economic ambitions. Evaluate the role of governance reforms, such as the ANRF, in incentivizing private sector participation to build a robust national innovation ecosystem.

Introduction

Despite housing 17.5% of the world’s population, India spends only 0.6–0.7% of GDP on &D (UNESCO). This structural deficit undermines ambitions of Viksit Bharat and technological sovereignty.

Scale of the Indian Research Deficit

1. Low R&D intensity: India’s GERD-to-GDP ratio remains stagnant at below 1%, far behind China (2.4%), USA (3.5%), and Israel (5.4%), limiting frontier innovation capacity.
2. Output mismatch: India produces barely 3% of global research output and around 1.8% of global patent filings (WIPO, 2023), revealing weak conversion of demographic dividend into knowledge capital.

Impact on Strategic and Economic Ambitions

1. Technological dependence: Low indigenous R&D forces reliance on technology imports and licensing, constraining self-reliance in semiconductors, defence, AI, and quantum technologies.
2. National security risks: As highlighted in the National Security Advisory Board reports, inadequate R&D weakens strategic autonomy in dual-use technologies critical for defence preparedness.
3. Lost economic value: Absence of deep-tech innovation restricts India to low-value manufacturing and services, limiting productivity growth and global value-chain upgrading.

Weak Private Sector Participation

1.            Skewed funding structure: Nearly 64% of R&D spending comes from government and public institutions, while the private sector contributes only ~36%, unlike OECD economies where industry dominates.
2. Risk-averse corporate culture: Indian firms prioritise incremental innovation, short-term profitability, and foreign technology absorption over disruptive, long-gestation research.
3. Missed scale effect: As noted by Jensen Huang, Huawei’s single-company R&D spend exceeds India’s national R&D outlay, underscoring the absence of corporate-scale innovation bets.

Governance and Institutional Bottlenecks

1. Academia–industry disconnect: Reports like the N.R. Narayana Murthy Committee flagged weak technology transfer mechanisms, poor commercialisation, and limited industry-funded research.
2. Brain drain: According to OECD migration data, top Indian researchers migrate due to inadequate funding, infrastructure, and career incentives.
3. Bureaucratic inefficiencies: Delays in approvals, fragmented funding, and rigid audit norms discourage ambitious, interdisciplinary research.

Role of ANRF and Governance Reforms

1. ANRF mandate: The Anusandhan National Research Foundation, under the National Education Policy 2020, aims to coordinate, fund, and scale research across disciplines.
2. Crowding-in private investment: By offering co-funding models, mission-mode grants, and industry-linked research clusters, ANRF can de-risk private R&D expenditure.
3. Strategic mission approach: Focused national missions in AI, semiconductors, green hydrogen, advanced materials, similar to DARPA (USA), can align innovation with national priorities.
4. Institutional autonomy: Streamlined governance, peer-reviewed funding, and outcome-based evaluation can enhance trust among private players.

Way Forward

1. Raise R&D spending: Commit to 2% of GDP within five years, as recommended by the Economic Survey.
2. Incentivise industry: Expand R&D tax credits, patent commercialisation rewards, and sovereign risk-sharing mechanisms.
3. University transformation: Build research universities, industry chairs, and deep-tech incubators to bridge the “valley of death”.
4. IP ecosystem strengthening: Faster patent processing, enforcement, and monetisation support to reward innovation.

Conclusion

As Justice K. Subba Rao stressed institutional foresight, innovation demands sustained commitment. Echoing APJ Abdul Kalam, only robust R&D governance can convert India’s talent into transformative national power.