• NITI Aayog released a report on Public Research and Development (R&D) Institutes in India.
• The report maps India’s public R&D ecosystem.
• It highlights structural issues affecting R&D performance.
• The report also provides policy recommendations to strengthen the ecosystem.

Status of R&D in India

• Gross Expenditure on Research and Development (GERD) reached approximately ₹2 lakh crore in 2020–21.
• This represents an eightfold increase over the last two decades.
• India’s GERD remains at 0.6% to 0.7% of GDP.
  • GERD refers to the total national spending on research and development activities.
• The government sector contributes 63.6% of India’s total R&D expenditure.
• Sectoral distribution shows that agriculture and allied sectors account for 51% of public R&D spending.
  • Agriculture is followed by the health sector in R&D allocation.
• The IT and telecom sector ranks next in public R&D expenditure.
  • Geographical concentration of R&D institutes is uneven across regions.
  • The southern region hosts over 36% of public R&D institutes.
  • The North-East region remains underrepresented with only 1.8% of public R&D institutes.
  • At the city level, around 48% of Central R&D institutions are located in the 10 most populous Indian cities.

India’s R&D Challenges

Stagnant R&D Expenditure

• India’s R&D expenditure has remained stagnant at 0.6–0.7% of GDP.
• This level is well below global R&D leaders.

Low Per-Capita Investment

• India has low per-capita R&D investment.
• Per-capita R&D spending is far behind other emerging economies.

Low Private Sector Contribution

• The private sector funds only about 36% of total R&D expenditure in India.
• This share is significantly lower than that of China, the USA, and Germany.

Poor Industry–Academia Synergy

• There is weak alignment between top research institutes and industrial hubs.
• Poor alignment limits commercialisation and applied research outcomes.

Recommendations of the Report

• Future R&D institutes should be located in proximity to industry clusters.
• Industry proximity can facilitate stronger collaboration and innovation.
• The report recommends the creation of centralised research hubs.
  • Centralised hubs can enable resource sharing and pooling of expertise.
  • Such hubs can also foster cross-industry collaboration.
• The report emphasises the development of collaborative spaces.
  • Collaborative spaces promote interaction among researchers, industry professionals, and entrepreneurs.
  • This approach supports innovation-driven ecosystems.
  • An example cited is the Industrial Liaison Program of MIT.
• The report recommends establishing Technology Transfer Offices (TTOs).
  • TTOs help transfer research outputs from laboratories to the market.
• Additional recommendations include streamlining administrative procedures.
• The report also suggests partnerships with private enterprises.
• It calls for the establishment of clear Intellectual Property (IP) guidelines.
  • Intellectual Property refers to legal rights protecting inventions, designs, and innovations.
• The report further highlights the need to address infrastructure gaps in R&D institutions.