India has launched a landmark ₹1 lakh crore Research, Development and Innovation (RDI) scheme to transform its innovation landscape. This initiative aims to address the country’s historically low R&D spending, which stands at under 0.7% of GDP. The new scheme is designed to shift India from a technology consumer to a global innovator and exporter. It focuses on strategic sunrise sectors and leverages India’s unique digital infrastructure.
Current Research and Development Scenario
India’s R&D investment is among the lowest globally despite its economic size and talent pool. Countries like the US, China, and South Korea invest more in research. This gap has limited India’s scientific progress and innovation capacity. The new scheme aims to reverse this trend by injecting substantial funds and institutional support.
Structure and Governance of the RDI Scheme
The RDI scheme will be implemented via the Anusandhan National Research Foundation (ANRF). It will operate under a Special Purpose Vehicle with oversight from senior government officials. The Prime Minister will chair the governing body, signalling strong political commitment. This governance model ensures accountability and strategic direction.
Focus Areas and Strategic Sectors
The scheme targets key sectors such as clean energy, climate technology, robotics, artificial intelligence, biotechnology, and agritech. India’s large agricultural workforce makes agritech a priority, focusing on precision farming and climate-resilient solutions. Clean technology efforts will favour decentralised solar power, advanced grid storage, and waste-to-energy projects suited to Indian conditions.
Leveraging India’s Digital Infrastructure
India’s vast digital public infrastructure, including Aadhaar, UPI, and Ayushman Bharat Health Account, offers a unique testbed for innovation. Integrating AI and blockchain with these platforms can drive advances in financial inclusion, digital health, micro-credit, and public services. This digital ecosystem is a strategic asset for R&D.
Role of Startups and Academic Institutions
Deep-tech startups in diagnostics, space tech, and battery innovation show India’s potential in global technology markets. Support for these ventures is crucial for scaling innovation. Academic institutions like IITs and IISc need enhanced funding and expansion to nurture diverse research. A broader academic base will fuel sustained innovation.
Global Models and Execution Strategy
The US Defense Advanced Research Projects Agency (DARPA) exemplifies successful public investment in high-risk research. India aims to emulate such models by combining strategic funding, academic talent, and long-term vision. Effective governance, expert fund managers, and risk-friendly policies are key to execution.
Regulatory and Private Sector Engagement
Simplifying IP protection, tax policies, and research collaboration will create a conducive environment for innovation. The private sector’s role is vital in co-investing and building R&D clusters. Public-private partnerships can multiply the impact of government funding and accelerate technology development.
National Importance and Future Outlook
India missed earlier technology waves like semiconductors and AI. The RDI scheme represents a critical opportunity to catch up. With global shifts in supply chains and climate urgency, innovation leadership will define future economic and strategic power. The initiative is a long-term national priority.
Questions for UPSC:
- Discuss in the light of India’s economic growth why increasing research and development expenditure is vital for sustainable development.
- Critically examine the role of public-private partnerships in enhancing India’s innovation ecosystem with suitable examples.
- Explain how digital public infrastructure can be leveraged to promote inclusive innovation and economic growth.
- With suitable examples, discuss the importance of strategic government funding in encouraging high-risk, high-reward research in emerging technologies.
