Context:
The 2025-26 Budget outlines a significant boost for scientific research, particularly in nuclear energy, innovation, and private sector R&D. Key announcements include a ₹20,000 crore allocation for small modular reactors (SMRs) and the establishment of a Research, Development, and Innovation fund under the Department of Science and Technology (DST).
Key Highlights:
- Major R&D Funding Announcements ₹20,000 cr dedicated towards developing five small modular reactors (SMRs) by 2033.
- Great boost to the DST since it has increased its allocation to ₹28,000 cr three times that of last year’s budget.
- Huge focus on private sector participation in R&D, historically since the government has spent its entire core by itself.
Challenges in India’s R&D Landscape
- Poor private sector R&D spending
- Currently represents only 36%.
- R&D expenditure has been declining at 0.64% of GDP in 2020. This is also the lowest since 1995.
- IPs from the strong areas in fuel, IT, pharma, metallurgy, and biotech are limited.
- Structural weaknesses
- Lack of chipsets, semiconductor fabs, skilled manpower, and good innovation infrastructure.
Key Concerns and Recommendations
- Absorption capacity
- It is not clear if the research ecosystem in India is capable of efficiently using these humongous amounts of money.
- Private sector engagement
- The government needs to outline how businesses can access R&D support.
- Foundational infrastructure needed
- Without education, technology, and funding bottlenecks addressed, increased investments may not result in the desired outcome.
