Budget 2025-26 Announcements for Scientific Research
The Budget for 2025-26 indicates significant support for scientific research and development in India.
Major Initiatives
- Small Modular Reactors: ₹20,000 crore allocated to develop five reactors by 2033.
- Research, Development, and Innovation Fund: A new initiative under the Department of Science and Technology (DST) aimed at benefiting start-ups and undefined "sunrise sectors."
Private Sector Participation
- Private sector R&D contribution is currently 36%.
- Overall R&D spending was 0.64% of GDP in 2020, the lowest since 1995.
- Business enterprises accounted for around 40% of government R&D expenditure over the last five years.
- Public sector R&D units spent only 0.30% of sales turnover on research compared to 1.46% by the private sector in 2020-21.
Financial Implications
- The government’s ₹20,000 crore infusion increases the DST’s total budgetary allocation to around ₹28,000 crore.
- This is over three times last year’s allocation and seven times the actual expenditure in 2023-24.
Challenges and Concerns
Despite India’s technological strengths, returns from core R&D and intellectual property generation are low. Challenges include:
- Inadequate infrastructure for quantum computing, artificial intelligence, and other advanced technologies.
- Essential elements like chipsets, semiconductor fabs, and a skilled workforce are lacking.
Recommendations
For effective utilization of funds and to transform India into a research powerhouse:
- Strengthen foundational infrastructure.
- Incentivize private innovation.
- Ensure sustainable engagement from industry leaders.
- Government should provide a clear roadmap for private sector access to funds and outline expected public benefits.
