No 'Jugaad': Economic Survey urges businesses to spend more on R&D

The Economic Survey 2020-21, launched by the government on January 29, hit out at businesses asking them to up their research and development activities rather than 'mere reliance on Jugaad innovation'.

"Mere reliance on 'Jugaad innovation' risks missing the crucial opportunity to innovate our way into the future," the survey said.

The survey added that of the ten biggest economies in the world, Indian businesses spent the lowest on R&D and the government had to do most of the work.

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"India's gross expenditure on R&D at 0.65 per cent of the GDP is much lower than the top 10 economies that spend 1.5-3 per cent of GDP, primarily because of the disproportionately lower contribution from the business sector," it stated.

The government, through the survey, called on Indian companies to increase their share of patents so they can complement India as the fifth-largest economy in the world. It added that Indian businesses have done badly on this front despite tax incentives provided by the government to promote R&D activities.