Lok Sabha Question No. 2108 (UNSTARRED), answered on 2023-08-02
Subject: Spending on Research & Development
Ministry: SCIENCE AND TECHNOLOGY
Asked by: Asaduddin Owaisi

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

## UNSTARRED QUESTION No. 2108 TO BE ANSWERED ON 02/08/2023

## SPENDING ON RESEARCH & DEVELOPMENT

2108.  SHRI ASADUDDIN OWAISI:

Will the Minister of SCIENCE & TECHNOLOGY ͪव£ान और Ĥौɮयोͬगकȧ मंğी be pleased to state:

- (a)      whether  it  is  a  fact  that  India  lags  behind  many  developing countries in regard to spent on

Research and Development (R&D) of its GDP, if so, the details thereof;

- (b)    the details of the present spent on R&D of its GDP including private sector;
- (c)       whether total spend on R&D on the Government side is 56% while 35% from private sector, if so, the details thereof;
- (d)      whether  the  Government  has  set  up  a  National  Research Foundation  (NRF)  to  increase  the  spent-on  R&D  and  to  provide increasing role to private sector if so, the details thereof; and
- (e) the  other  steps  taken  by  the  Government  to  increase participation of private sector in the research field?

## ANSWER

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

ͪव£ान और Ĥौɮयोͬगकȧ

राÏयमंğी (èवतंğ Ĥभार) (डॉ. िजतɅġ ͧसंह)

- (a) & (b):  As per latest R&D Statistics, India's spent on R&D (including private  sector)  of  its  GDP  is  0.64%,  while  the  same  among  other developing  BRICS  countries  is  Brazil  (1.3%),  Russian  Federation (1.1%), China (2.4%) and South Africa (0.6%). This ratio is 0.3% for Mexico.

(c): The share of government spending on R&D (including Higher Education) is 63.6% and that of private sector is 36.4%.

(d): The Union Cabinet has approved introduction of the National Research Foundation Bill, 2023 (Bill) in the Parliament with an aim to establish National Research Foundation (NRF) as a Statutory body under Ministry of Science and Technology. The main objective of NRF is to serve as an overarching apex body to provide high-level strategic direction of scientific research in the country. It aims to seed, grow and promote research and development (R&D) and provide increasing role to private sector by fostering collaborations among the industry, academia, government departments and research institutions, and create an interface mechanism for participation and contribution of industries and State governments in addition to the scientific and line ministries.

(e): The  government  has  taken  up  several  steps  to  increase participation  of  private  sector  in  the  research  and  development. Some of the key steps include: 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. There are specific investment incentives offered such as Location-based tax incentives that enable 100% deductions of profits generated from establishing and doing business in northeastern states of India.

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