Why Budget plans for deep tech and research funding matter
- The Finance Minister recently announced significant measures in the Interim Budget speech to bolster research and development (R&D) efforts in India.
Deep Tech Fund and Defence Sector
- She announced a Rs 1 lakh crore fund to provide long-term, low-cost or zero-interest loans for R&D.
- A new scheme to strengthen deep-tech capabilities in the defence sector was also promised.
- This announcement hints at a broader policy to promote deep tech startups across various sectors, beyond defence.
Importance of Deep Tech
- Deep tech refers to advanced and disruptive technologies with the potential to trigger transformative change, and provide solutions for the future.
- The term is used to describe cutting-edge research in nanotechnology, biotechnology, quantum technologies, semiconductors, AI, data sciences, robotics, 3D printing, etc.
- These technologies address complex global challenges like climate change, hunger, energy access, mobility, cybersecurity etc.
- They are expected to enhance productivity, economic growth and job creation.
Building an Ecosystem
- With its large base of relatively high-quality science and engineering manpower and a fairly well-established technology culture, India feels it is well placed to be one of the frontrunners in these areas.
- The government has initiated efforts to incentivize research in deep tech areas by setting up a National Mission on Transformative Mobility and Battery Storage and the recent National Quantum Mission.
- Policies like the National Deep Tech Startup Policy (NDTSP) aim to foster a conducive environment for tech startups.
- NDTSP focuses on long-term funding, intellectual property rights, tax incentives, and talent nurturing.
Funding Challenges
- Long-term funding for research projects is crucial but lacking in India.
- India spends just about 0.65% of its national GDP on research and development activities.
- India’s expenditure on research is far below the global average of about 1.8%.
- It is also significantly lower than the scientifically advanced countries with which India competes.
- Government expenditure on R&D is below global averages, prompting partnerships with the private sector.
- The National Research Foundation (NRF) seeks to foster collaboration between industry and research institutions to broad-base both research activity and the funds to support it.
Rs 1 Lakh Crore Corpus
- The Rs 1 lakh crore fund aims to kickstart investment in research projects, particularly benefiting startups.
- However, scepticism exists within the scientific community due to past experiences of inadequate funding and bureaucratic delays.