Lok Sabha Question No. 5555 (UNSTARRED), answered on 2022-04-06
Subject: GERD
Ministry: SCIENCE AND TECHNOLOGY
Asked by: Maddila  Gurumoorthy, Midhun Reddy

## GOVERNMENT OF INDIA MINISTRY OF SCIENCE AND TECHNOLOGY DEPARTMENT OF SCIENCE AND TECHNOLOGY LOK SABHA

UNSTARRED QUESTION No. 5555

TO BE ANSWERED ON 06.04.2022

GERD

5555. SHRI MADDILA GURUMOORTHY: SHRI P.V. MIDHUN REDDY:

Will the Minister of SCIENCE AND TECHNOLOGY ǒव£ान और Ĥौƭोिगकȧ मंğी pleased to state:

be

- (a)  whether  it  is  a  fact  that  the  country's  Gross  Expenditure  on  Research  and Development (GERD) has stagnanted over the last few years and if so, the details thereof;
- (b) the details of GERD in the country during the last decade;
- (c) the reasons behind such stagnant rate of GERD in the country;
- (d) the steps taken/being taken by the Government to increase GERD; and
- (e) whether the Government has included any provisions in the new draft Science, Technology and Innovation (STI) policy to increase GERD and if  so, the details thereof?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF SCIENCE AND TECHNOLOGY & EARTH SCIENCES (DR. JITENDRA SINGH)

ǒव£ान और Ĥौƭोिगकȧ तथा पृØवी ǒव£ान मंğालय क े राÏय मंğी ( èवतंğ Ĥभार) ( डॉ. ǔजतɅġ िसंह )

- (a),  (b)  &  (c):  The  Gross  Expenditure  on  Research  and  Development  (GERD),  in absolute terms, has been consistently increasing over the years and has increased 3 times during the last 10 years. However, GERD to GDP figure remains around 0.7% during last few year, due to inadequate private sector investment into GERD. The details of GERD during last decade are annexed.
- (d)   The government has been making consistent efforts to increase the GERD. Some of the key efforts made by Government include the successive increase in plan  allocations  for  Scientific  Departments,  incentivizing  investment  by  private sector to increase their share in GERD, improving the ease of doing  business in the Science, Technology and Innovation (STI) activities; introducing flexible tools for  public  procurement;  creating  avenues  for  collaborative  STI  funding  through portfolio-based funding mechanisms such as Public-Private-Partnerships and other innovative  hybrid  funding  mechanisms.  The  Government  has  allowed  corporate sector  to  make  R&D  investments  under  the  provision  of  Corporate  Social Responsibility (CSR). Corporates can invest in technology business incubators or

contribute  in  research  efforts  carried  out  by  institutions  and  national  research laboratories as a part of their CSR.

- (e) Yes Sir, as part of the new draft Science, Technology and Innovation (STI) policy  several  provisions  have  been  included  with  the  focus  to  increase  GERD. Some of the key provisions include; greater participation of central, state, local governments  and  public  sector  enterprises;  fiscal  incentives  to  attract  private sector; fiscal and non-fiscal incentives to attract Foreign Direct Investment; Microfinancing through crowdfunding and philanthropic sources; linking public procurement  with  domestic  industries;  Public  Private  Partnerships  (PPPs)  and industry led mission oriented joint initiatives; etc.

Annexure National Expenditure on Research and Development in Relation to GDP

GDP

| Year                                                             | GERD current prices (Rs. Crore)                                            | GDP current prices (Rs. Crore)                                        | GERD % of GDP                   |
|------------------------------------------------------------------|----------------------------------------------------------------------------|-----------------------------------------------------------------------|---------------------------------|
| Series: 2004-05                                                  | Series: 2004-05                                                            | Series: 2004-05                                                       | Series: 2004-05                 |
| 2009-10 2010-11                                                  | 53041.30 60196.75                                                          | 6477827 7784115                                                       | 0.8 0.8                         |
| Series: 2011-12                                                  | Series: 2011-12                                                            | Series: 2011-12                                                       | Series: 2011-12                 |
| 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19* | 65961.33 73982.79 79355.89 87473.44 95452.44 103099.26 113825.03 123847.71 | 8736329 9944013 11233522 12467959 13771874 15362386 17095005 19010164 | 0.8 0.7 0.7 0.7 0.7 0.7 0.7 0.7 |

Source : (i) Data on R&D expenditure collected and compiled by NSTMIS, DST, GoI.

(ii) Data on GDP - Economic Survey 2018-19.

Note :   1. GDP : Gross Domestic Product.

2. R&D : Research & Development.

3. R&D/GDP ratio have been revised as per the new GDP figures.

4. * Estimated

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