Sustainable funding for science

Source-This post on Sustainable funding for science funding has been created based on the article “Why science needs sustainable funding” published in “The Hindu” on 28 February 2024.

UPSC Syllabus-GS Paper 3- Science and Technology- Developments and their Applications and Effects in Everyday Life.

News-The article highlights the need to ensure sustainable funding for science to achieve developed country status by 2047. Sustainable funding for Science

What is the state of science funding in India?

India’s research and development (R&D) expenditure is around 0.64% of GDP. There has been a decline in science funding from 0.8% in 2008-2009 and 0.7% in 2017-2018 to 0.64 currently.

This is despite the fact that both 2013 Science, Technology, and Innovation Policy and Economic survey have urged the government to take R&D spending to 2% GDP.

A detailed article on Funding Issues of Indian Science can be read here.

With respect to other countries, funding for fundamental research in India is amongst the world’s lowest. In 2021, member-countries of the OECD on average spent 2.7% of their GDP on R&D. The U.S. and the U.K. have consistently spent more than 2% of their GDPs on R&D for the past decade.

What are the issues with science funding in India?

1) Lack of private sector participation– In 2020-2021, the private sector industry contributed 36.4% of the GERD whereas in economically developed countries, a major share — 70% on average — of R&D investment comes from the private sector.

2) Regulatory Issues– Issues like lack of clear exit options for investors in sectors such as biotechnology and fears of intellectual property rights theft discourage private investment in R&D in India.

3) Under-utilization of allotted funds– In 2022-2023, the Department of Biotechnology (DBT) used 72% of its estimated budget allocation while the Department of Science and Technology (DST) used only 61%.
4) Lack of capacity- There is lack of capacity to evaluate projects or clear utilization certificates and release grant and salary disbursements on time.

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What should be the way forward?

1) Enhanced private sector participation- Finance Minister highlighted the need for enhanced R&D expenditure from the private sector.

2) Budget optimization- There should be a reduction in the under-spending and underutilization of funds earmarked for R&D.

3) Political prioritization– R&D spending should be given utmost importance by political class. This prioritization must happen within the ministries concerned and at the Ministry of Finance, which disburses the funds.

4) Overcoming regulatory hurdle– There should be incentives for private investment, including relaxation of foreign direct investments, tax rebates, and clear regulatory guidelines for private players.

5) Evaluation & monitoring-There should be capacity building of bureaucrats so that they can evaluate science projects and, after allocations, monitor utilization.

India should spend at least 3% of the GDP on R&D annually until 2047 reach the ‘developed nation’ status.