Science and Technology Initiatives in the Budget

Source-This post on Science and Technology Initiatives in the Budget has been created based on the article “What do scientists make of the Budget?” published in “The Hindu” on 5 August 2024.

UPSC Syllabus–GS Paper-3– Government Budgeting.

Context– The article reviews the Indian Budget’s science and technology measures, noting initiatives for research, agriculture, and clean energy. However, there are concerns about basic research funding, the implementation of ANRF (Anusandhan National Research Foundation (ANRF)), and the overall increase in science funding relative to GDP.

What are the Budget Allocations and Priorities?

1) Research and Development- The Anusandhan National Research Foundation (ANRF), with a ₹1 lakh crore corpus, will focus on basic research and prototype development, aiming to foster private sector-driven research and innovation.

2) Biotechnology and Agriculture-

A) Agricultural research is focused on boosting productivity and climate resilience. Speed breeding platforms at various institutes now allow growing 4-6 generations of rice in a single year.

B) Research is focused on developing crop varieties that are both climate-resilient and high-yielding, covering crops like rice, wheat, chickpea, and linseed.

3) Industrial and Economic Policies- The plan includes setting up “plug and play” industrial parks in 100 cities and creating 12 new parks under the National Industrial Corridor Development Programme. There is a clear focus on commercializing technologies with the involvement of private sector-driven research.

4) Critical Minerals Mission– Customs duties on 25 critical minerals are being waived to boost research in these areas.

5) Start-up and Investment Incentives– Angel tax abolition to encourage private capital for start-ups.

6) Energy and Environment- The clean energy initiatives focus on solar and nuclear energy, including partnerships with the private sector for small nuclear reactors and reduced taxation on critical raw materials and minerals.

7) Space Technology-Establishment of ₹1,000 crore venture capital fund for space technology

8) Health and Pharmaceuticals – The Production Linked Incentive (PLI) Scheme has increased its allocation for pharmaceuticals to ₹2,143 crore to boost domestic manufacturing.

9) Education and Skill Development- The i3C BRIC-RCB PhD program and internship scheme are designed to foster multi-disciplinary learning, skill development, and encourage students to pursue careers in science.

A detailed article on India’s R&D Funding Status can be read here.

What are the concerns?

1) Budget Allocations and Reporting -Actual spending on science and technology was lower than allocated, and the 2024-2025 budget increase might be negated by inflation. Concerns include whether funds will meet allocations and criticism of the zero-budgeting system and quarterly reporting.

2) Commercializing Academic R&D Innovations- India’s R&D efforts are mainly focused on academia, and innovations often don’t reach the market.

3) Disparities in Funding -Most of India’s 40,000 state-run higher education centers receive limited funding, with only 11% of Department of Science and Technology funds allocated to them, while 65% goes to IITs.

4) ANRF’s Focus and Funding Adequacy -The ANRF’s focus on basic science and prototype development, supported by a ₹1,000 crore fund for space tech, is promising but may be inadequate; there are concerns that combining prototype development with basic research might overly shift the focus towards translational research.

Question for practice

What are the key Budget allocations and priorities, and what concerns have been raised about them?