Research and Development (R&D) is the backbone of innovation, economic growth and societal progress. It drives advancements across industries, leads to new products and fosters technological growth. For a country like India, with its vast pool of talent and growing economic potential, investing in R&D is crucial.
Innovation is rightly acknowledged as a driver of economic growth, and Prime Minister Narendra Modi appropriately extended Lal Bahadur Shastri and Atal Bihari Vajpayee’s slogan, “Jai Jawan, Jai Kisan, Jai Vigyan,” to include ‘Jai Anusandhan’ (research and innovation).
While India has made notable strides in sectors like IT and pharmaceuticals, the broader landscape of R&D still needs to catch up with the global standards. Countries that prioritise R&D, such as the United States, South Korea and Germany, have emerged as leaders in technology, industry and global influence. In contrast, India’s R&D spending remains underwhelming, which holds back its potential for innovation and development. Thus, exploring why India needs to pay more attention to R&D is a necessity.
The Current Landscape of R&D in India
India’s R&D landscape has witnessed improvements, yet it remains a mixed bag. According to data, India spends less than 1% of its GDP on R&D, whereas countries like Israel and South Korea spend over 4%. The government and public sector are the main contributors, with private sector investment lagging. India has also developed strong institutions like the Indian Institutes of Technology (IITs) and the Council of Scientific and Industrial Research (CSIR).
However, the connection between academic research and industrial application is still weak, limiting the practical impacts of these institutions’ innovations. Furthermore, while India’s talent pool is vast, the brain drain to countries with better research infrastructure remains a significant challenge.
Why does India still lag in R&D?
India’s lower investment in R&D is often cited as the primary reason for its lagging innovation landscape. However, the problem runs deeper. Bureaucratic red tape, a risk-averse private sector and a focus on short-term returns over long-term innovation are key hurdles. There is inadequate collaboration between academic institutions and industries, making it difficult to convert theoretical research into practical applications. Moreover, the education system is often criticised for prioritising rote learning over creative problem-solving, hindering innovation at its roots.
Additionally, India’s focus on labour-intensive industries means less emphasis is placed on automation and research-heavy sectors. Thus, even though India produces a significant number of engineers and scientists, the opportunities for them to engage in cutting-edge research within the country are limited.
Where do India stand in comparison with Global R&D Leaders
When comparing India with countries that have excelled in R&D, the differences are stark. Countries like the United States, Germany, Japan and South Korea are global leaders in R&D, not just because of their investment but also because of the collaborative ecosystems they have built. In these countries, there is a seamless connection between academia, government and the private sector, ensuring that research leads to innovation.
For instance, South Korea invests heavily in R&D, focusing on electronics, telecommunications and advanced manufacturing. This has transformed it into a global tech giant, home to companies like Samsung and LG. The country’s emphasis on innovation-driven growth has allowed it to create high-paying jobs, boost exports and significantly raise its standard of living. Similarly, Germany’s focus on engineering, automotive and green technologies, combined with government incentives for private sector R&D investment, has made it a leader in industrial innovation.
Why should India prioritise R&D?
India’s demographic dividend presents a unique opportunity that can only be harnessed through innovation. With a population largely under 35 years of age, the potential to drive technological change is immense. However, without a strong R&D framework, India risks becoming a mere consumer of technologies developed elsewhere rather than a producer.
R&D is essential for solving some of India’s most pressing issues, including healthcare, energy security, climate change, and sustainable agriculture. For example, India’s pharmaceutical industry, known as the “pharmacy of the world,” could push boundaries in drug discovery and biotechnology with more robust research support. In agriculture, improved research could revolutionise water conservation techniques, crop resilience and yield improvement—vital for a country whose livelihood depends so heavily on farming.
How can India enhance its R&D capabilities?
To fully realise its potential, India needs a multi-faceted approach to strengthening R&D. The current 0.7% of public R&D spending should be increased to at least 3% of India’s GDP to facilitate innovations. Strategies should be developed to reclaim India’s intellectual capital by promoting collaborations and knowledge transfer. Collaborating with countries that are strong in R&D will provide Indian researchers with access to cutting-edge technologies and methodologies.
Mandating 2% of CSR funds for joint research projects with academic institutions will strengthen the industry-academia linkage, while developing a national portal can allow industries to post research problems while academia offers solutions. Introducing mandatory research methodology and scientific writing courses in PhD curricula, alongside a national mentorship programme pairing early-career researchers with eminent scientists, will improve the quality of Indian research.
In addition, ‘Women in STEM’ programme, gender-sensitive policies can help foster inclusivity. Further, establishing A national IP bank could ease patent licensing, promoting translation of research into marketable innovations. Higher education should be promoted with availability of fellowships and grant programmes to fund research projects spanning multiple discipline. These steps would significantly improve India’s ecosystem for research and innovation.
In conclusion, for India to thrive in the global economy and tackle its domestic challenges, a robust R&D framework is non-negotiable. While the country has made progress in certain areas, significant gaps remain in terms of investment, industry collaboration and innovation culture. By enhancing its R&D capabilities, India can transform into a hub of global innovation, creating opportunities for future generations and ensuring sustainable growth for its economy.