India’s Research and Development Strategy
India’s R&D Crisis: Context and Background
- India spends only 0.64% of GDP on R&D against a global average of over 2%.
- Only two-fifths of India’s R&D spending comes from private enterprise, unlike China, Korea and the US.
- In China, Korea and the US, three-quarters of R&D funding comes from private companies.
- China spends 2.43% of GDP on R&D with the explicit goal of ending technological dependence.
Key Initiatives: Anusandhan National Research Foundation (ANRF)
Institutional Structure
- ANRF was notified in 2024 as a statutory body chaired by the Prime Minister himself.
- It convenes academia, industry, startups, philanthropy and the diaspora under one institutional framework.
- ANRF aligns government procurement and regulation with the innovation landscape it is building.
Funding Architecture
RDI Fund
Commits ₹1 lakh crore over six years exclusively to the private sector.
ANRF Core
Adds ₹50,000 crore over five years for underlying fundamental science.
Participation Pathways
- Companies can participate as limited partners, eligible technology entities, or through joint ventures with startups.
- CSR contributions can also be routed through the ANRF Innovation Fund, expanding participation pathways.
Challenges in India’s Technology and R&D Ecosystem
Brain Drain
India trains doctoral talent at public cost and readily watches it depart abroad for better research environments.
Corporate Short-Termism
Indian firms prioritise quarterly earnings over long-horizon research investment.
IP Consumer Status
India remains a consumer of intellectual property rather than a generator at global scale.
Technology Denial Risk
Export licences, chokepoints and technology restrictions have become instruments of geopolitical policy.
Weak Industry-Academia Links
Research in universities remains disconnected from industry requirements and commercial application.
Missing Research Culture
Most Indian firms lack dedicated research units, corporate venture arms and long-term planning functions.
Critical Technology Dependence
India remains dependent on others for semiconductors, critical minerals and advanced manufacturing technologies.
Way Forward: From IP Consumer to IP Generator
Mobilise Private Capital
Industry must deploy its own capital alongside ANRF’s public catalyst rather than waiting for state support.
Strategic Technology Selection
Firms must choose arenas where dependence is most dangerous and capability most valuable.
Build Research Institutions
Companies must establish dedicated research units and corporate venture arms insulated from quarterly pressures.
Academia-Industry Compact
Deepen structured partnerships between universities, research institutions and industry for pre-commercial research.
Leverage the Demographic Window
India’s demographic dividend is available now but not forever — research investment must happen urgently.
DPI as Research Infrastructure
Use India’s digital public infrastructure as a base for AI and data-driven research at unprecedented scale.
Retain PhD Talent
Create research fellowships, competitive salaries and world-class lab conditions to retain doctoral talent in India.
