India’s Investment in Research and Development
- Context:
- India would have the chance to set the global agenda when it holds the G20 presidency in 2023 if research and development were included as one of the G-20 documents’ goals.
- Research, development, and technical innovation must be pursued as a crucial requirement for a nation’s independence, economic advancement, and prosperity.
- Gross domestic R&D expenditures across the G20:
- According to the most recent report from UNESCO’s Institute for Statistics, the G20 countries made up 90.6% of the worldwide GERD (current, PPP$) in 2018. (UIS).
- Research Intensity (R&D spending as a percentage of GDP) increased steadily from 1.43 percent in 1998 to 1.72 percent in 2018, while global R&D spending in 2018 reached a record high of more than 2.2 trillion current PPP$.
- Even if looking at spending in PPP terms is a relevant indicator for measuring economic welfare, it all comes down to analysing hard currency in US dollars when it comes to technological proficiency in high-end R&D operations.
- The United States led the G20 with $581.6 billion in R&D spending in 2018, followed by the European Union ($323 billion) and China ($297.3 billion).
- India is far behind with a pathetic R&D expenditure of roughly $17.6 billion in 2018. With 36% of the G20’s total R&D investment, the US leads the EU (20%) and China (2%), by a significant margin. eighteen percent.
- In terms of dollars, India’s share of G20 R&D expenditures is less than 1%.
- A prerequisite for becoming a Vishwa Guru (global leader) is investing in R&D:
- India still has a long way to go before achieving its objective of becoming a Vishwaguru, according to the lesson.
- And the only way to achieve this, it appears, is to shift India’s massive subsidies—known as the “revdi” culture—for items like food, fertiliser, PM Kisan, free energy, and even the PLI manufacturing programme toward an expansion of spending on R&I.
- The United States has continued to rule the world since World War I. Due to its technological edge across a wide range of industries and its military might, the US has the biggest and most aggressive open economy.
- In terms of research intensity, many non-G20 countries have RIs that are even higher than those of the G20 countries. Their overall R&D spending is, however, comparatively extremely small.
- Among these non-G20 countries, Israel has the highest RI of more than 5% despite having the lowest R&D expenditure of $18.6 billion, the smallest population of 9.3 million, and the lowest per capita income of roughly $51,430. Israel also has the lowest population density of 9.3 million.
- Whether they be in the fields of agriculture or defence, Israel is known for its innovations.
- Israel’s innovation system is what largely powers its economy and competitiveness. The government has established many efficient structures for innovation, including incubators, close science-industry links, venture capital (VC), and top-notch university teaching. For SMEs, this is especially true. Israel presents a convincing argument for how, despite its small size, sustainable growth can be attained by prioritising R&D investments. This is a lesson for India.
- India’s R&D Objectives:
- To recognise innovation as a catalyst for economic success, the Indian government has added “Jai Anusandhan” to the ancient motto of Lal Bahadur Shastri and Atal Bihari Vajpayee, “Jai Jawan, Jai Kisan, Jai Vigyan” (research and innovation).
- The Atal Innovation Mission (AIM) was launched by the government in 2016 with the goal of promoting innovation and entrepreneurship across the country. The success of each of these initiatives hinges on how much money India actually invests in R&D compared to other G20 countries, both in absolute terms and as a percentage of its GDP.
- It constitutes a significant step toward the goal of sustainable development (SDGs) In accordance with the Sustainable Development Goals, Agenda 2030 seeks to “build resilient infrastructure, promote fair and sustainable industrialization, and support innovation” (SDGs).
- SDG Target 9.5 particularly requests that nations foster innovation, considerably increase the number of researchers, and boost both public and private R&D spending. To gauge a country’s commitment to R&D, the gross domestic spending on R&D (GERD) aggregate is proposed.
- What to do next:
- Disruptive science for innovative and sustainable development is the focus of the engagement group Science20’s theme for India’s G20 presidency, with a focus on clean energy for a more sustainable future, universal holistic health, and integrating science and society and culture.
- India must also strive for technological innovation and brilliance across a range of sectors, including manufacturing, agriculture, and defence. Inventions that can safeguard its basic ecosystem, including its air, water, and land, are also desperately needed. India is now recognised as a world leader in the IT and digital sectors.
