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Govt. survey on R&D in India gets weak response from private sector

What’s Happening ?

  • The Science and Technology Ministry conducts a biennial National Science and Technology Survey to assess the state of scientific research in India.
  • The latest edition (launched December 2024) surveys ~8,000 R&D bodies (public & private).
  • Purpose: Measure domestic R&D expenditure, GDP share, number of scientists, patents, and overall global standing.
  • Issue: Publication of results is being postponed due to weak response from private sector R&D firms.

Relevance :

  • GS III (Science & Technology): R&D expenditure, innovation ecosystem, patents, STEM workforce.
  • GS II / III (Governance & Policy): Public-private participation, policy planning, global competitiveness.

Why It’s in the News ?

  • Government & industry gap: While 73% of government R&D institutions responded, only 35% of Indian industry bodies and 9% of multinational companies submitted data by September 2025.
  • Impact: Delays the release of critical data that informs policy-making, planning, and benchmarking India’s scientific capacity.
  • Event Highlight: FICCI workshop held to encourage private sector participation.

Survey Methodology

  • Data collected via detailed questionnaires sent to institutions.
  • Identities of firms are masked, but data provide trends for:
    • Domestic R&D expenditure
    • R&D’s share of GDP
    • Scientist demographics, including gender ratio
    • Patents and innovation output
    • Comparative position of India globally

Key Findings ?

  • Government contribution dominates: ~75% of India’s R&D spending comes from public sector.
  • Private sector contribution is limited, unlike advanced economies where private firms dominate R&D funding.
  • Challenges cited by industry:
    • Unclear definition of “R&D spending” in questionnaires.
    • Comparison with advanced economies deemed premature given India’s GDP per capita.
    • Administrative burden in filling detailed survey data.

Policy Implications

  • Need for private sector engagement: India’s R&D ecosystem is heavily public-funded, limiting innovation, global competitiveness, and industrial growth.
  • Data-driven policy: Survey results inform policies on:
    • Funding allocation
    • Incentives for private R&D
    • STEM workforce planning
    • Patent & IP ecosystem strengthening
  • International benchmarking: Weak private participation may skew India’s comparative R&D ranking globally.

Contextual Analysis

  • Global comparison:
    • Advanced economies rely on private R&D (60–70% of total), e.g., US, Germany, Japan.
    • India relies 75% public funding, indicating need for industrial innovation push.
  • Economic relevance: Strong private R&D is essential for technology-intensive industries, startups, and exports.
  • Government initiatives:
    • Workshops with FICCI to mobilize private sector participation.
    • Likely extension of deadline to Nov 30, 2025, to increase submissions.

Challenges

  • Data clarity: Ambiguity in defining R&D spending metrics.
  • Compliance burden: Lengthy forms and reporting requirements.
  • Perception gap: Private sector feels India’s R&D spending is already significant relative to GDP; reluctant to report.
  • Global benchmarking pressure: Concerns that India may be unfairly compared with industrially advanced nations.

Way Forward 

  • Simplify reporting: Provide clearer guidelines and definitions for R&D expenditure.
  • Incentivize participation: Link data submission to policy benefits or recognition.
  • Enhance public-private partnerships (PPP): Encourage co-investment, joint research, and innovation clusters.
  • Benchmarking & transparency: Use data for targeted policy interventions to strengthen India’s R&D ecosystem and global competitiveness.

September 2025
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