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Context

The editorial examines the contradiction between India’s ambition of becoming a global economic and technological power and its persistently weak research and development (R&D) ecosystem. Despite possessing a vast talent pool, demographic advantage, and a rapidly growing economy, India continues to underinvest in R&D, both in absolute terms and relative to GDP. This chronic deficit threatens the long-term sustainability of initiatives such as Viksit Bharat and undermines India’s aspiration to emerge as a global innovation leader.

Core Issue

The central issue is whether India can realise its grand developmental vision without addressing the deep structural weaknesses in its R&D ecosystem.

India’s challenge is not merely low output indicators, but a systemic failure involving:

  • Insufficient public and private investment,
  • Weak academia–industry linkages,
  • Risk-averse corporate culture,
  • Inadequate research infrastructure and incentives.

The Scale of the R&D Deficit

India’s R&D gap is stark when examined through key indicators:

  • India hosts 17.5% of the world’s population, but produces only about 3% of global research output.
  • Gross Expenditure on R&D (GERD) has stagnated between 0.6–0.7% of GDP, far below:
    • China (~2.4%),
    • United States (~3.5%),
    • Israel (>5.4%).
  • In 2023, India ranked 6th globally in patent filings with 64,480 applications, but this accounted for only 1.8% of global filings.
  • When measured as patents per million inhabitants, India ranked 47th, revealing low domestic innovation intensity.

These figures indicate that India’s demographic dividend is not translating into research dominance.


Overdependence on the Government Sector

A critical weakness lies in the structure of R&D funding:

  • The government sector contributes about 63.6% of R&D expenditure.
  • The private sector accounts for only ~36.4%, contrary to developed economies where industry contributes two-thirds or more.

This imbalance reflects:

  • Corporate focus on incremental innovation,
  • Preference for technology licensing over indigenous development,
  • High aversion to long-term, high-risk research.

Such a model limits the scalability and commercialisation of innovation.


Academia–Industry Disconnect

India’s innovation ecosystem suffers from a persistent gap between academia and industry:

  • Research in universities remains largely theoretical,
  • Technology transfer mechanisms are underdeveloped,
  • Joint industry–academic projects are rare,
  • Unlike the U.S., Indian companies rarely bring real-world problems to universities.

As a result, valuable research ideas fail to cross the “valley of death” between laboratory development and market deployment.


Brain Drain and Research Environment

While India produces a large number of engineers and PhDs:

  • Top researchers often migrate abroad for better funding, infrastructure, and career prospects.
  • Domestic research institutions struggle with:
    • Limited high-end facilities,
    • Lower global salary benchmarks,
    • Slow and unpredictable project approvals.

This weak ecosystem undermines India’s ability to attract and retain world-class talent.


Inefficiencies in Public R&D Funding

Public R&D funding faces operational challenges:

  • Excessively long project approval timelines,
  • Staggered and unpredictable fund release,
  • Lack of long-term funding certainty.

These constraints are incompatible with ambitious, frontier research programmes that require continuity and scale.


The Path Forward: Strategic Reorientation

To bridge the research deficit, India must pursue a long-term, mission-driven approach:

  • Increase R&D expenditure to at least 2% of GDP within 5–7 years.
  • Use tax incentives and grants to raise private sector contribution to 50% or more.
  • Ensure efficient deployment of initiatives like the ₹1 lakh crore Research, Development and Innovation (RDI) Fund.
  • Focus on national missions in strategic sectors:
    • Semiconductors,
    • Artificial Intelligence,
    • Quantum technologies,
    • Advanced materials,
    • Green energy.

These missions must be linked to national security and economic sovereignty.


Universities and Research Reform

Higher education reform is central to innovation:

  • Universities must transition from teaching-focused institutions to research-intensive centres of excellence.
  • Measures required include:
    • Expanded PhD funding,
    • Competitive research faculty positions,
    • World-class infrastructure,
    • Mandatory frameworks for industry-sponsored research.
  • Strengthening intellectual property culture through:
    • Simplified patent filing,
    • Stronger enforcement,
    • Attractive incentives for inventors.

Conclusion

India possesses the intellectual capital and ambition to become a global innovation powerhouse, but ambition alone cannot compensate for chronic underinvestment and structural inertia. The comparison with single corporations like Huawei spending more on R&D than the entire Indian ecosystem is a sobering reminder of the scale of the challenge.

If India is serious about achieving Viksit Bharat, the next decade must be dedicated to building strong financial, institutional, and cultural foundations for research and innovation. Without decisive political will and sustained commitment, the vision of technological leadership will remain aspirational rather than achievable.


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