[Answered] Budgetary allowances alone cannot solve India’s R&D challenges. Critically examine the systemic and policy impediments beyond funding that hinder research, development, and innovation in India.

Introduction

While budgetary provisions such as the ₹1-lakh crore RDI scheme reflect political will, India’s research and innovation ecosystem suffers from structural bottlenecks that require holistic reforms beyond fiscal allocations.

India’s R&D Landscape: The Current Status

India’s Gross Expenditure on R&D (GERD) has stagnated at around 0.65% of GDP for over a decade, far below China (2.4%) and the U.S. (3.4%). Of this, the government funds nearly 70%, while the private sector contributes less than 40%, contrary to trends in developed nations where industry drives innovation.

Systemic and Policy Impediments Beyond Budgetary Allocation

1. Weak Institutional Architecture: The newly created Anusandhan National Research Foundation (ANRF) aims to streamline research funding but overlaps and fragmentation persist among agencies like DST, DBT, CSIR, and ICMR. Bureaucratic inertia, delays in fund disbursement, and excessive procedural compliance discourage risk-taking among researchers.
2. Lack of Incentives for Private Sector Innovation: The RDI scheme restricts support to Technology Readiness Level-4 (TRL-4) and above, ignoring early-stage innovations (TRL 1–3) that require the most support and bear the highest risk. Limited industry-academia collaboration and weak IP protection mechanisms (India ranks 42nd in WIPO’s Global Innovation Index 2023) disincentivize long-term private R&D.
3. Brain Drain and Talent Deficit: As per UNESCO, over 85,000 Indian students went abroad for STEM education in 2023, citing better research facilities and career prospects. Underpaid, insecure research fellowships, limited post-doctoral opportunities, and lack of recognition demoralize scientific talent, leading to ‘brain waste’ or emigration.
4. Inadequate Research Infrastructure and Manufacturing Base: India lacks world-class lab facilities, clean rooms, or precision manufacturing infrastructure necessary for advanced research. Innovations in areas like quantum computing, semiconductors, and defence technologies falter due to poor integration with the manufacturing sector. The PLI scheme has improved electronics and biotech manufacturing, but sectoral linkages with domestic research remain weak.
5. Absence of Strategic Mission-Oriented Research: Historically, disruptive innovations have emerged from mission-driven public investment (e.g., DARPA in the U.S., which led to the internet and GPS). India lacks a comparable civil-military innovation complex, limiting spillovers from defence R&D to civilian applications.
6. Education-Relevance Mismatch: Indian higher education institutions lag in research output and global rankings; only 3 Indian universities feature in QS Top 200 (2025). Syllabi remain outdated and emphasis on rote learning undermines critical thinking and problem-solving, essential for innovation.

Way Forward

1. Strengthen ANRF’s autonomy and ensure streamlined single-window funding with timely disbursal.
2. Establish Innovation Clusters and Technology Transfer Offices (TTOs) to bridge academia and industry.
3. Develop a National Science Career Track offering stable, merit-based positions for young researchers.
4. Build mission-oriented R&D programs in climate tech, quantum, AI, and space modelled on global best practices like EU’s Horizon Europe.
5. Promote deep-tech startups through easier patent processes, tax incentives, and dedicated incubators.

Conclusion

India’s innovation bottlenecks lie deeper than funding shortfalls. A transformative leap in R&D requires synchronized reforms in education, infrastructure, talent retention, and institutional accountability to unlock true innovation potential.