Why science needs sustainable funding
- National Science Day in India, celebrated annually on February 28th, highlights the significance of science and technology in the nation's development journey.
- The theme for 2024 is "Science for Sustainable Development," emphasizing the role of science in India's pursuit of sustainable growth.
Current R&D Spending Scenario
- India's expenditure on research and development (R&D) remains low compared to its ambitious science and technology goals.
- Recent data shows a decline in R&D spending, dropping to 0.64% of GDP from 0.8% in 2008-2009 and 0.7% in 2017-2018.
- Despite government acknowledgments and calls to double R&D spending, the actual allocation falls short of targets.
- The reduction may be attributed to
- Insufficient coordination among government agencies
- Lesser political will to prioritise expenses on research and development.
Comparison with Global Standards
- Developed countries typically allocate 2-4% of their GDP to R&D, with OECD countries averaging 2.7%.
- Experts advocate for India to invest at least 1% to ideally 3% of GDP annually until 2047 to make meaningful progress.
Challenges and Solutions
- Despite current spending being inadequate, the private sector’s contribution to R&D in India remains low, signalling an immature financing system and weak domestic market.
- In 2020-2021, private sector industry contributed 36.4% of the GERD whereas the Union government’s share was 43.7%.
- In economically developed countries, a major share – 70% on average – of R&D investment comes from the private sector.
- Hesitancy in private sector funding may be because of
- Poor capacity to evaluate R&D in India
- Ambiguous regulatory roadmaps
- Lack of clear exit options for investors in sectors such as biotechnology
- Concerns of intellectual property rights theft
- The delayed implementation of initiatives like the Anusandhan National Research Foundation adds to the funding uncertainties.
Utilisation of R&D Budget
- While calls for increased funding persist, the efficient utilisation of allocated funds is equally crucial.
- The Union Ministry of Science and Technology has consistently under-utilised its budget allocations, indicating systemic issues.
- In 2022-2023, the Department of Science and Technology (DST) used only 61% of its estimated budget allocation.
- While the Department of Biotechnology (DBT), used only 72% of its estimated budget allocation on Centrally Sponsored Schemes/Projects
- The reasons for under-utilisation are unclear but may indicate
- Tedious bureaucratic processes for approving disbursements
- Lack of capacity to evaluate projects or clear utilisation certificates
- Lack of prioritisation for science funding by the Ministry of Finance
- Inadequate planning or implementation strategy for the requested funds by the Ministry of Science and Technology
Sustainable Funding Strategies
- Sustainable funding for R&D necessitates political prioritisation, private sector participation, and bureaucratic capacity building.
- This prioritisation has to happen not only within the concerned Ministries but also at the Ministry of Finance, which disburses the funds.
- Incentives for private investment, including relaxation of foreign direct investments, tax rebates, and clear regulatory roadmaps for products will help build investor confidence.
- Further, building bureaucratic capacity for project evaluation and fund utilisation monitoring is also crucial for India's scientific advancement.