India must strengthen research to boost innovation

Source: The post India must strengthen research to boost innovation has been created, based on the article “Translating research into wealth” published in “Businessline” on 17 May 2025. India must strengthen research to boost innovation

UPSC Syllabus Topic: GS Paper3-Science and Technology–indigenization of technology and

developing new technology.

Context: India is at a crucial stage in its innovation journey. Despite having skilled talent and growing market demand, Indian academic research often fails to produce commercially viable products. Chronic underfunding and weak academic-industry links are key reasons. The Anusandhan National Research Foundation (ANRF), launched in 2023, aims to change this.

For detailed information on India’s R&D Funding and Private Sector Role read this article here

Innovation Gaps and Funding Constraints

1. Low Research Investment: India’s Gross Expenditure on R&D (GERD) is only 0.7% of GDP — much lower than the 2.5% or more spent by developed countries. Per-faculty research funding in India is significantly lower than in the US, where it averages $150,000 per faculty.
2. Impact on Innovation Quality: This lack of funding restricts India’s ability to produce world-class, market-ready innovations. Academic research remains largely disconnected from industry needs.
3. ANRF’s Strategic Role: The ANRF aims to correct this by funding translational research and promoting industry-academia collaboration. A full-time CEO has been appointed to lead this mission.

Aligning Research with Economic Goals

1. Low Industrial Profit Margins:,India’s 42 major industrial sectors generated ₹99 lakh crore in FY22 but averaged just 8% in profit margins. Heavy dependence on foreign technologies and royalty payments reduces profitability.
2. Need for IP Ownership and Indigenous Tech:?To achieve higher margins like Apple or ASML, India must generate its own intellectual property and reduce import reliance. Building local manufacturing capacity is crucial.
3. Focus on High-Impact Sectors: Strategic sectors such as AI, quantum tech, biotech, and advanced electronics offer high global demand and economic potential. With the right research ecosystem, these can mirror the success of IT and e-commerce sectors, which enjoy 16–24% margins.

Bridging Academia and Industry

1. Weak Research Delivery Structures: Many universities avoid applied research projects. Their internal systems prioritise theoretical exploration over product-focused outcomes.
2. ANRF as a Catalyst: ANRF can train faculty in writing proposals, fund labs for applied research, and promote IP sharing with industry partners. This can close the gap between academic knowledge and industrial needs.
3. Learning from Past Missions: India’s Nano, Cyber-Physical Systems, and Quantum Missions produced skilled talent and research but saw little commercialisation. ANRF must design market-relevant, outcome-driven programmes in partnership with industry.

Case Studies: Sector-Specific Innovation Opportunities

1. Laser Technology: India imports nearly $1 billion in laser components annually. A ₹1,000-crore laser mission by ANRF could build 100 W–5 kW fibre lasers domestically, leading to IP creation and a globally competitive industry.
2. Battery Equipment Manufacturing: With battery demand set to reach 200 GWh by 2030, India still imports most equipment from China. ANRF can fund R&D in cathode materials and local equipment manufacturing to support EV growth and reduce foreign dependence.

Way Forward for ANRF

1. Strengthen Direct University Funding: ANRF should fund universities directly, while DST and DSIR bodies should be made financially self-reliant to free up resources.
2. Develop a ‘Super 1000’ Faculty Network: Select India’s top 1,000 faculty based on publications, patents, and products. Provide them long-term, flexible grants to drive innovation.
3. Launch Strategic Research Programmes:?Fund large-scale missions in semiconductors, APIs, clean energy, and quantum tech, co-designed with ministries and industry.
4. Support Product-Driven Research:,Provide incentives for work on TRL 3–10 technologies. Focus on patents and product development instead of just academic output.
5. Create a Self-Sustaining Innovation Fund: Like a venture fund, ANRF can take small equity or royalty shares in successful projects and reinvest returns to support future research.

Question for practice:

Evaluate the role of the Anusandhan National Research Foundation (ANRF) in addressing India’s innovation challenges and bridging the gap between academic research and industry needs.