The recent announcement of India's Union Budget 2024 has stirred both anticipation and uncertainty, particularly concerning the proposed ₹1 lakh crore corpus dedicated to fostering research and innovation within the private sector. However, amidst the excitement, the lack of detailed modalities has left stakeholders with more questions than answers, prompting a cautious approach from industry players.
The envisioned corpus aims to provide long-term financing and refinancing opportunities at minimal interest rates, with the overarching goal of bolstering research and development efforts in emerging domains. This initiative comes in the wake of India's modest expenditure on scientific R&D, standing at a mere 0.7% of its GDP—a figure that falls short compared to global standards.
Previously, the Government had floated the idea of establishing the National Research Foundation (NRF) in alignment with the National Education Policy (NEP), allocating ₹50,000 crore towards this endeavor. However, the lack of clarity surrounding the implementation of this proposal continues to linger, casting a shadow of uncertainty over the effectiveness of such initiatives.
Industry stalwarts, including Kris Gopalakrishnan, Infosys co-founder, emphasize the importance of understanding the mechanisms for accessing and utilizing this corpus effectively. While optimism abounds regarding the potential benefits, the need for transparency and accountability in fund allocation remains paramount.
Gopichand Katragadda, former Chief Technology Officer at Tata Sons, stresses the inadequacy of India's R&D expenditure, advocating for a substantial increase to drive meaningful outcomes. Despite acknowledging the corpus as a step in the right direction, Katragadda underscores the imperative of robust IP laws and effective utilization of funds to maximize impact.
Echoing similar sentiments, Ramkumar Narayanan, former chairman of Nasscom's Deeptech Council, draws attention to the lack of clarity surrounding the deployment of funds, citing the NRF as a pertinent example. Without clear guidelines and mechanisms in place, the efficacy of such initiatives remains uncertain.
Furthermore, the need for broader participation in academic research beyond elite institutions and the importance of patient capital in fostering deep tech entrepreneurship cannot be overstated. As India seeks to elevate its position in the global R&D landscape, a concerted effort towards productizing research and fostering a culture of innovation becomes imperative.
TV Mohandas Pai, chairperson of Manipal Global Education, emphasizes the pivotal role of the private sector in driving cutting-edge research and innovation, underscoring the necessity of government support in this endeavor. With sectors like pharmaceuticals and technology poised for growth, investments in R&D hold the key to unlocking India's potential on the global stage.
In conclusion, while the Budget 2024 initiatives signal a step in the right direction towards fostering research and innovation, the onus lies on the government to provide clarity and transparency in execution. Only through concerted efforts and strategic investments can India realize its aspirations of becoming a global leader in research and innovation.
