RESEARCH & DEVELOPMENT (R & D) SERVICES

The Research & Development sector of India6 grew by 20.8 per cent in 2012–13 and contributed 1.4 per cent of GDP (old method). As per the CSO’s new method, there is no separate head for R&D. It is a part of the professional scientific & technical activities including R&D classification which grew at 3.1 per cent and 23.4 per cent respectively in 2014–15 and 2015–16 (Ministry of Commerce & Industry, Feb. 2017).

India’s R&D expenditure has been low – the STO (Science, Technology and Innovation) Policy, 2013 aims to raise it to 2 per cent of GDP with enhanced participation of the private sector.

Findings of the Global Competitiveness Report 2016–17 are as given below –

(a) India’s capacity for innovation has been lower than that of many countries like the USA, the UK, South Korea, and even South Africa.

(b) Even in quality of scientific research institutions, India scores lower than China and South Africa. This is also exhibited through its poor score on university–industry collaboration on R&D as compared to some other BRICS (Brazil, Russia, India, China and South Africa) nations like China and South Africa.

(c) In terms of patents granted per million population, India fares badly compared to other BRICS countries. In terms of company spending on R&D also, India ranks below China. Only in terms of availability of scientists and engineers, does India score better or is equal to other BRICS countries.

The Government of India has taken many initiatives in recent times to promote the R&D sector in India –

(i) The weighted tax deduction of 200 per cent for R&D expenditure.

(ii) Establishment of the AIM (Atal Innovation Mission) in the NITI Aayog. This will be an innovation promotion platform involving academics, entrepreneurs, and researchers and draw upon national and international experiences to foster a culture of innovation, R&D and scientific research in India. The platform will also promote a network of world- class innovation hubs.

(iii) SETU (Self Employment and Talent Utilization) programme, aimed at setting up world class technology business incubators to promote start- up business in India coupled with Start-up-India, Make in India.

(iv) IMPRINT (Impacting Research Innovation and Technology), a Pan-IIT and IISc joint initiative to develop a roadmap for research to solve major engineering and technology challenges in ten technology domains relevant to India.