{"id":228483,"date":"2023-02-24T20:38:03","date_gmt":"2023-02-24T15:08:03","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=228483"},"modified":"2023-02-24T20:38:03","modified_gmt":"2023-02-24T15:08:03","slug":"indias-rd-estimates-are-an-incomplete-picture","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/indias-rd-estimates-are-an-incomplete-picture\/","title":{"rendered":"India\u2019s R&D estimates are an incomplete picture"},"content":{"rendered":"\n

Source<\/strong>– The post is based on the article \u201cIndia\u2019s R&D estimates are an incomplete picture\u201d <\/strong>published in The Hindu <\/strong>on 24th February 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS3- Science and Technology<\/p>\n

Relevance:<\/strong> Issues related to R&D in India<\/p>\n

News- <\/strong>India\u2019s research and development expenditure \u00adGDP ratio of 0.7% is very low when compared to major economies. It is much below the world average of 1.8%.<\/p>\n

What is the reason for low spending on R&D in India?<\/strong><\/h2>\n

The main reason is the low investment in R&D by the corporate sector<\/strong>. While the corporate sector accounts for about two thirds of gross domestic expenditure on R&D in leading economies, its share in India is just 37%.<\/p>\n

What are issues with GERD statistics in India?<\/strong><\/h2>\n

Evidence suggests that India\u2019s GERD data are an underestimate.<\/p>\n

A 2022 report of the National Science Foundation of the United States<\/strong> on Foreign R&D by U.S.\u00adbased MNCs shows a spending of \u20b9649.7 on R&D<\/strong> in India in 2018.<\/p>\n

But the DST has provided an estimate of \u20b960.9 billion R&D<\/strong> spending in 2017\u00ad-18 by foreign MNCs. It is only about 10% of what U.S. firms have reported to have spent in India on R&D.<\/p>\n

Why are GERD statistics underestimated in India?<\/strong><\/h2>\n

The National Science and Technology Management Information System (NSTMIS<\/strong>) of the<\/p>\n

DST is the agency that compiles GERD statistics in India.<\/p>\n

It is easier to gather the information on R&D by the government sector, the higher education sector and public sector enterprises.<\/p>\n

The challenge lies in collecting data from the private corporate sector. The method used for identification of R&D performing firms does not capture all the R&D performing firms.<\/p>\n

The NSTIMS relies on the Department of Scientific and Industrial Research list of recognised R&D units<\/strong> and the database of the CMIE for this purpose<\/strong>.<\/p>\n

The DSIR list may not have many of the actual R&D performers for two reasons:<\/p>\n

    \n
  1. Firms which consider government incentives<\/strong> as not attractive enough may register themselves with the DSIR.<\/li>\n
  2. It may be difficult for R&D firms in services such as software and R&D services to meet the requirement of having separate infrastructure for R&D<\/strong> to distinguish it from their usual business.<\/li>\n<\/ol>\n

    A study at the Institute for Studies in Industrial Development<\/strong> found that only 11% of firms <\/strong>receiving foreign investment for R&D purposes had been registered with DSIR. The CMIE database covers only 3.5% of the currently active registered enterprises<\/strong> in India.<\/p>\n

    The survey conducted by the NSTMIS is the key source of R&D statistics of India. For those firms which do not respond to the survey, the data is collected from secondary sources s<\/strong>uch<\/p>\n

    as annual reports and CMIE<\/strong>. This method will work only if firms disclose their R&D spending<\/strong>.<\/p>\n

    A review of the documents submitted to the Ministry of Corporate Affairs shows that there are firms which do not report any spending on R&D. But, their declarations<\/strong> suggest that they are engaged in activities of technology development.<\/p>\n

    What is the way forward to improve GERD statistics?<\/strong><\/h2>\n

    In the short term, NSTMIS should use the patents granted data<\/strong>, both in India and the U.S. in addition to its current method to identify R&D performing enterprises.<\/p>\n

    R&D statistics should not be confined to the responses to the surveys. Instead, annual R&D estimates can be prepared from mandatory disclosures by enterprises<\/strong> to MCA.<\/p>\n

    In order to ensure compliance and proper reporting<\/strong>, technologies can be used like in the case of revamped income tax return forms where various sections are interlinked.<\/p>\n

    Proper disclosure of information<\/strong> to regulatory agencies, including R&D spending data, should be made an essential component of the environmental, social and governance ranking of enterprises<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Source– The post is based on the article \u201cIndia\u2019s R&D estimates are an incomplete picture\u201d published in The Hindu on 24th February 2023. Syllabus: GS3- Science and Technology Relevance: Issues related to R&D in India News- India\u2019s research and development expenditure \u00adGDP ratio of 0.7% is very low when compared to major economies. It is… Continue reading India\u2019s R&D estimates are an incomplete picture<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10498],"class_list":["post-228483","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/228483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=228483"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/228483\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=228483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=228483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=228483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}