<p>The Union Cabinet’s approval for the Research Development and Innovation (RDI) scheme is an important step towards boosting the country’s performance in innovation and research. </p><p>The government proposes to launch a Rs-1 lakh crore fund to support and encourage research and development in the private sector through low-interest, long-term loans. The focus on promoting private sector participation in R&D efforts is a new theme in government policy. </p><p>Titled the Anusandhan National Research Foundation, the initiative comes with a two-tiered structure. While its top tier will handle the Rs-1 lakh crore corpus through a special purpose fund, the funds will be passed on at zero or low interest to a second tier of fund managers who will disburse them for projects in the private sector. </p><p>The aim is to encourage the private sector to undertake research in sunrise domains and strategic sectors which will aid the country’s development.</p>.<p>India’s R&D performance is low, both in the public and the private sector. The country’s total R&D spending is only 0.65% of its GDP which is much less than the spending by other major countries. The US spends over 2.5%, China over 2.4%, and South Korea and Israel about 4-5% of their GDP on research. </p><p>The private sector accounts for only 35% of the R&D investment in India while the sector contributes 75% of R&D in the US and China. A robust R&D ecosystem is crucial in creating new products and processes, and helping companies to become competitive and to grow. India’s inability to create strong global brands can be traced to the low priority accorded to R&D. </p><p>Research lags in comparison with advanced countries, as reflected in the number of patents and publication of papers. India’s aspirations to become a developed country also hinge on its encouragement of creative spirit and innovation.</p>.<p>The new initiative will hopefully result in funding support for research in important sectors such as industry, science, engineering, and agriculture. Research in pure science is the basis of discovery of new processes and technologies and it should get adequate attention. </p><p>There should be better linkages between industry and academia in research and related academic activities as they can strengthen each other. </p><p>An ecosystem that further encourages start-ups and small companies should be developed as they are more likely than larger firms to adopt innovation. </p><p>It is also important to improve the standards of education at all levels so that there is adequate human resources support for the R&D programmes.</p>
<p>The Union Cabinet’s approval for the Research Development and Innovation (RDI) scheme is an important step towards boosting the country’s performance in innovation and research. </p><p>The government proposes to launch a Rs-1 lakh crore fund to support and encourage research and development in the private sector through low-interest, long-term loans. The focus on promoting private sector participation in R&D efforts is a new theme in government policy. </p><p>Titled the Anusandhan National Research Foundation, the initiative comes with a two-tiered structure. While its top tier will handle the Rs-1 lakh crore corpus through a special purpose fund, the funds will be passed on at zero or low interest to a second tier of fund managers who will disburse them for projects in the private sector. </p><p>The aim is to encourage the private sector to undertake research in sunrise domains and strategic sectors which will aid the country’s development.</p>.<p>India’s R&D performance is low, both in the public and the private sector. The country’s total R&D spending is only 0.65% of its GDP which is much less than the spending by other major countries. The US spends over 2.5%, China over 2.4%, and South Korea and Israel about 4-5% of their GDP on research. </p><p>The private sector accounts for only 35% of the R&D investment in India while the sector contributes 75% of R&D in the US and China. A robust R&D ecosystem is crucial in creating new products and processes, and helping companies to become competitive and to grow. India’s inability to create strong global brands can be traced to the low priority accorded to R&D. </p><p>Research lags in comparison with advanced countries, as reflected in the number of patents and publication of papers. India’s aspirations to become a developed country also hinge on its encouragement of creative spirit and innovation.</p>.<p>The new initiative will hopefully result in funding support for research in important sectors such as industry, science, engineering, and agriculture. Research in pure science is the basis of discovery of new processes and technologies and it should get adequate attention. </p><p>There should be better linkages between industry and academia in research and related academic activities as they can strengthen each other. </p><p>An ecosystem that further encourages start-ups and small companies should be developed as they are more likely than larger firms to adopt innovation. </p><p>It is also important to improve the standards of education at all levels so that there is adequate human resources support for the R&D programmes.</p>
