The R&D Expenditure Ecosystem: Current Status and Way forward report published in July 2019 brought afore recommendations under seven categories namely: ‘Institutional, Policy, Regulatory, Promotional, Monitoring & Evaluation, Data & Indicators and Tax Incentives with an empowered Office of Principal Scientific Adviser’. This document had five objectives:

1. To examine the relevance of R&D in the context of economic growth and social wellbeing. 
2. To assess the level of R&D spend in India as compared to the global  spend.
3. To identify the major stakeholders in India’s R&D ecosystem and assess their relative contributions to total R&D spend. 
4. To examine the strength and weakness of the existing ecosystem in fostering R&D 
5. To prepare a roadmap for a smart efficient and effective R&D expenditure ecosystem by recommending suitable measures for reaching the desired level of R&D spend by 2022.

Outcomes of the report:

1.  Notification of Ministry of Finance for introducing a new appendix in the Budget Circular 2021-22

Until 2021 Union Budget neither collected nor collated R&D Expenditure/Allocation data. This has now changed with Union Budget      2021-22. At the initiative of O/o PSA, Union Budget Circular 2021-22 introduced an Appendix LV in order to capture the R&D  Expenditure/Allocation by Central Government department wise.  

2.  Revision of guidelines for according suitable weightage to R&D by Department of Public Enterprises,

Central Public Sector Enterprises (CPSEs) play a key role in the R&D ecosystem. As per the latest Public Enterprise Survey report, CPSEs have incurred 4038 INR Crores of expenditure towards R&D. In order to further strengthen their role, O/o PSA took an initiative to have the MoU guidelines for CPSEs revised for assigning suitable weightage to R&D with Department of Public Enterprises (DPE). DPE has now issued revised MoU guidelines with effect from Fiscal year 2021-22 to all Ministries for compliance.

3.  Introduction of a chapter on Research and Innovation in the Economic Survey 2020-21, A chapter titled “Innovation: Trending Up but needs thrust, especially from the Private Sector” was included in the Economic Survey 2020-21 document in response to an initiative by O/o PSA.

4.  Amended rules for CSR Funding in R&D.

Efforts underway:

1.  O/o PSA is working to introduce a separate chapter on R&D Exports in the forthcoming Foreign Trade Policy with Department of Commerce in order to give due importance to this sunrise sector.

2. States incur expenditure towards R&D. Major items of expenditure include medical, agriculture and science, technology and ecology.  This was revealed in a study report of RBI on the request of O/o PSA. To integrate R&D ecosystem into state economy, O/o PSA has requested State Governments to introduce a separate R&D Budget in their respective State Budgets. Nodal Officers have been nominated and the exercise of integrating the R&D Budget into General Budget is under progress.

You may be interested in

Science, Technology  and Innovation  Policy 2020

Science, Technology and Innovation Policy 2020

Give your feedback on  National Research Foundation 2020

Give your feedback on National Research Foundation 2020


Back to Top