Context: The article argues that India must use public research financing to mobilise sustained private investment in strategic technologies, commercialisation capacity and long-term institutional research.
Source: “India now has the funds, the talent and the opening for a research leap,” The Indian Express, July 18, 2026.
Core Points
- Dependence on foreign technologies creates vulnerabilities when export controls, licences and supply chains are used as instruments of geopolitical policy.
- India’s gross expenditure on research and development is approximately 0.64% of GDP, below the levels recorded by several major innovation-driven economies.
- The public sector accounts for roughly 60% of India’s R&D expenditure, while private enterprise contributes about 35–36%.
- The ₹1 lakh crore Research, Development and Innovation Scheme seeks to attract private investment into high-risk and deep-technology research.
- Its two-tier structure places a special-purpose fund within the Anusandhan National Research Foundation, with resources channelled through second-level fund managers.
- Eligible projects include technologies in energy, climate action, quantum computing, robotics, space, artificial intelligence, biotechnology, medical devices and other strategic sectors.
- Public financing can reduce early-stage risk, but companies must still commit their own capital, choose strategically important technologies and establish durable research institutions.
- Stronger collaboration among industry, universities, start-ups and global capability centres can help convert scientific research into commercial technologies.
- India’s engineering talent, digital infrastructure and the global demand for diversified technology suppliers create an opportunity, but not a guarantee, for technological advancement.
Prelims Relevance
- The Anusandhan National Research Foundation is a statutory body established under the ANRF Act, 2023.
- Its Governing Board is chaired by the Prime Minister.
- Technology Readiness Levels describe the maturity of a technology from basic principles to operational deployment.
- A fund of funds invests through intermediary funds rather than financing every enterprise directly.
Mains Relevance
- GS III — Science and technology policy, research financing, innovation, intellectual property, deep technology and self-reliance.
- GS II — Institutional coordination among government, universities, industry and research organisations.
Supporting Fact Box
- The RDI Scheme has a corpus of ₹1 lakh crore and is intended to operate over six years.
- The Department of Science and Technology is its nodal implementing department.
- The Technology Development Board and Biotechnology Industry Research Assistance Council have been designated as second-level fund managers.
- Funding is intended principally for technologies at Technology Readiness Level 4 and above through long-term concessional financing and other risk-sharing instruments.
- India’s private sector contributes about 35–36% of national R&D expenditure, compared with more than 70% in several innovation-driven economies.