- Objective: Stimulate private sector investment in core research and development (R&D).
- Fund Size: ₹1 lakh crore, primarily in the form of low-interest, long-term loans.
- Administering Body: Likely to be handled by the Anusandhan National Research Foundation (ANRF).
Relevance : GS 3(Research and Development)
- Eligibility:
- Private sector companies (not universities or academic institutes).
- Focus on commercial product development, not fundamental or blue-sky research.
- Consortiums with academia may participate if led by private entities.
- Loan Structure:
- Nearly zero per cent interest.
- Tenure of 5-7 years.
- Evaluated by a professional body, not DST.
Comparative R&D Investment Trends
- India’s R&D investment:
- <1% of GDP (0.65%) – significantly lower than scientifically advanced nations (1.5%-3%).
- Private sector contribution: 30%-36% of total R&D expenditure.
- Global benchmarks:
- USA: Private sector contributes 75% of R&D spending.
- China: Private sector contributes 77%.
Strategic Focus Areas
- Sector agnostic, but likely to prioritize:
- Space technology
- Pharmaceuticals
- Automobile sector
- Energy
- Exclusion: Service industries (e.g., IT sector) will not be eligible.
Government’s Role & Financial Allocation
- Initial allocation: ₹20,000 crore to the Department of Science and Technology (DST).
- ANRF’s long-term goal: ₹50,000-crore corpus with ₹36,000 crore from non-government sources.
- Comparison to PLI scheme: Functions similarly to Production Linked Incentive (PLI) but focused on R&D.
Significance of the Initiative
- Encourages industry-led R&D by reducing financial risks.
- Boosts innovation and intellectual property creation in India.
- Bridges India’s R&D investment gap compared to leading economies.
- Strengthens India’s position in high-tech industries like pharmaceuticals, space, and energy.
