A grand vision and the great Indian research deficit

Source: The post  “A grand vision and the great Indian research deficit’’ has been created, based on “A grand vision and the great Indian research deficit” published in “The Hindu” on 29th December 2025.

UPSC Syllabus: GS Paper-3- Science and technology

Context: India aspires to emerge as a global economic and technological power, but this ambition is constrained by a persistent and systemic deficit in research and development (R&D). Despite possessing vast human capital, India has not been able to translate this advantage into innovation leadership due to chronic underinvestment and structural weaknesses.

Magnitude of the R&D Deficit

1. India accounts for nearly 17.5% of the world’s population, yet it contributes only about 3% of global research output, highlighting inefficient utilisation of its demographic dividend.
2. India ranked sixth globally in patent filings in 2023, but its share constituted only 1.8% of total global patent applications, indicating limited innovation depth.
3. India ranks 47th in resident patent applications per million people, which reflects low domestic innovation intensity.
4. India’s gross expenditure on R&D has stagnated at 0.6–0.7% of GDP, which is significantly lower than that of major innovation-driven economies such as China, the United States, and Israel.
5. The fact that a single multinational corporation like Huawei spends more on R&D than India’s total national outlay underscores India’s strategic underinvestment in frontier technologies.

Structural Weaknesses in India’s R&D Ecosystem

1. Dominance of Government Funding: Government institutions contribute nearly two-thirds of India’s total R&D expenditure, whereas globally, the private sector is the primary driver of innovation. This overdependence on public funding limits efficiency, scalability, and market-oriented research outcomes.
2. Weak Private Sector Participation: Indian industry has largely focused on incremental innovation and technology imports rather than disruptive and indigenous research. Risk aversion, short-term profit orientation, and limited deep-tech venture funding discourage long-term R&D investments.
3. Academia–Industry Disconnect: Indian universities primarily function as teaching institutions with limited engagement in applied and commercial research. Weak technology transfer mechanisms and minimal industry-funded research prevent laboratory innovations from reaching the marketplace.
4. Brain Drain and Talent Retention Issues: India produces a large number of engineers and doctoral graduates, but many of the most talented researchers migrate abroad in search of better funding, infrastructure, and career opportunities. The domestic research environment struggles to attract and retain world-class researchers due to inadequate facilities and lower compensation levels.
5. Bureaucratic and Institutional Constraints: Lengthy approval processes and fragmented funding mechanisms delay the implementation of long-term research projects. Unpredictable fund disbursement and excessive compliance requirements further reduce research efficiency.

Implications of the R&D Deficit

1. India remains technologically dependent in critical sectors such as semiconductors, defence, pharmaceuticals, and clean energy.
2. Limited innovation capacity constrains India’s ability to move up global value chains and achieve sustained economic competitiveness.
3. Weak indigenous R&D undermines strategic autonomy and national security in an era of technology-driven geopolitics.

Way Forward

1. India must increase its R&D expenditure to at least 2% of GDP within the next five to seven years to build a sustainable innovation ecosystem.
2. The private sector’s share in R&D funding must be raised to at least 50% through tax incentives, grants, and risk-sharing mechanisms.
3. India should adopt a mission-mode approach by focusing on strategic sectors such as semiconductors, artificial intelligence, quantum computing, biotechnology, and green energy.
4. The ₹1 lakh crore Research, Development and Innovation Fund must be efficiently deployed with transparent governance and outcome-based financing.
5. Universities must be transformed into research-intensive institutions through enhanced PhD funding, global faculty recruitment, and world-class research infrastructure.
6. Structured mechanisms such as industry-sponsored research chairs, joint incubation centres, and collaborative doctoral programmes should be institutionalised.
7. India must simplify patent procedures, strengthen enforcement, and create financial incentives for the commercialisation of intellectual property.
8. Talent retention should be improved through globally competitive fellowships, returnee scientist programmes, and flexible hiring policies.

Conclusion: India possesses the intellectual resources and ambition required to become a global innovation leader. However, without decisive financial commitment, institutional reform, and a cultural shift towards risk-taking and long-term research, the R&D deficit will continue to undermine national goals. Sustained political will and mission-driven investment are essential for realising the vision of Viksit Bharat by 2047.

Question: India’s ambition to become a global power is constrained by a weak research and development (R&D) ecosystem. Discuss the key reasons for India’s R&D deficit and suggest measures to strengthen innovation and research capacity in the country.