Context-

The Union Budget presentation has always been a significant event for various sectors, including the scientific and technological communities. In the 2024-2025 budget proposed by the Narendra Modi government, various priority areas were highlighted, such as agriculture, energy security, and manufacturing. However, alongside these developments, concerns about the potential sidelining of basic research and stagnation in research funding as a percentage of GDP have surfaced.

Government Initiatives in Advanced Technology

During its previous two terms, the Modi government launched several major national advanced technology missions, including initiatives in supercomputing, cyber-physical systems, and quantum technologies. India has also made significant strides in space technology, being the fourth country to successfully land a spacecraft on the moon. Despite these achievements, concerns have emerged about the lack of focus on basic research and the stagnation of research funding as a proportion of GDP.

Key Highlights from the Budget

●     Focus on Research and Development

The Council of Scientific and Industrial Research (CSIR), noted that the Union Budget emphasises the concept of "Viksit Bharat," continuing the focus from previous years. The budget prioritises research and development in crucial areas such as climate-resilient agriculture, critical minerals, and energy-efficient technologies. The Finance Minister has underlined the importance of basic research and prototype development under the Budget’s "Innovation, Research and Development" section, reflecting a clear commitment to enhancing innovation and industry linkages.

●     Budget Allocation for Scientific Research

The Finance Minister announced an allocation of ₹6,323.41 crore for the Department of Scientific and Industrial Research for the financial year 2024-2025, representing a 10% increase over the previous year's budget. This allocation aims to sustain R&D activities in various sectors, including technology development for clean energy, water supply, sewage treatment, and solid waste management. CSIR plans to capitalise on the opportunities presented by the proposed "plug and play" industrial parks in 100 cities and the establishment of a dozen industrial parks under the National Industrial Corridor Development Programme. These initiatives provide significant opportunities for the adoption of indigenous technologies developed in CSIR labs.

●     Transforming Agricultural Research

The Department of Biotechnology (DBT), expressed optimism regarding the Budget’s emphasis on transforming agricultural research. The focus on climate resilience and productivity in agriculture is evident, with initiatives such as the establishment of "speed breeding platforms" at various research institutions aimed at accelerating the development of crop varieties with improved traits. For instance, rice crops can now be grown for four to six generations in a single year through these facilities.

Additionally, the DBT is focusing on skilling young minds and encouraging interdisciplinary collaboration through programs like the i3C BRIC-RCB PhD program. This program aims to solve national problems while fostering innovation and cross-disciplinary expertise in biosciences and biotechnology.

Incentives for Start-Ups and Private Investment

●     Abolition of Angel Tax

The abolition of the angel tax is viewed as a significant incentive for start-ups seeking to raise private capital. The previous tax was seen as a deterrent for investments in the high-risk biotechnology sector. The 2024 Budget provisions for foreign direct investment (FDI) promotion further complement this move, creating a robust pipeline for angel-funded companies ready for venture capital investments post-BIRAC funding.

●     Bridging the Gap Between Academia and Industry

Despite the positive outlook on funding and incentives, Subhash Lakhotia, Distinguished Professor at Banaras Hindu University, raised concerns about the actual expenditure on science and technology (S&T) and higher education. He pointed out that the expenditure in the previous financial year fell short of initial allocations. The suggested allocations for 2024-2025 are not significantly different from those in 2022-2023, leading to disappointment as these nominal increases may be offset by inflation.

Moreover, with the increasing number of public and private institutions, competition for available funding has intensified. As a result, the per capita funding available for researchers may decrease, raising concerns about whether actual funds will match the allocated Budget.

Operationalizing the Anusandhan National Research Foundation (ANRF)

The operationalization of the Anusandhan National Research Foundation (ANRF) has been touted as a potential game-changer for basic research and prototype development. With a proposed corpus of ₹1 lakh crore, the ANRF is expected to pave the way for private sector-driven research and innovation. However, the mention of "prototype development" alongside basic research has raised questions about the government’s intentions. Typically, prototype development pertains to initial software stages before product release, which contrasts with the objectives of basic scientific research.

●     Addressing Disparities in Funding

The ANRF aims to address disparities in funding between various higher education institutions in India, which are predominantly run by state governments and often have limited resources. Currently, approximately 65% of funding from the Department of Science and Technology is allocated to Indian Institutes of Technology (IITs), leaving other institutions with only 11% of the funding. The ANRF seeks to change this funding dynamic, but the effectiveness of this mechanism remains to be seen.

Concerns Regarding Budget Allocations

The National Institute for Advanced Studies observed that while the government plans to establish a venture capital fund of ₹1,000 crore to promote space technology, this amount may be inadequate given the substantial capital requirements of the sector. The establishment of a separate fund is a positive step, but the allocation should be proportional to the investment needed for fostering space technology start-ups.

●     A Need for Greater Commitment to Basic Research

The scientific community has long demanded increased government funding for basic research, which remains a critical area of concern. While the Budget outlines several nominal increases, there is a pervasive sense of disappointment over the lack of significant, long-term commitments to boost the scientific research ecosystem in India.

Conclusion

The Union Budget for 2024-2025 brings forth several initiatives aimed at bolstering research and development in India. While there are positive elements such as increased funding for various sectors and the operationalization of the ANRF, significant concerns remain regarding the actual expenditure on science and technology, the focus on basic research, and the adequacy of funding to address the needs of a rapidly evolving research landscape. For India to achieve its goal of becoming a global leader in science and technology, a more substantial commitment to basic research and a balanced approach to funding across all research institutions is crucial. Only then can the nation fully harness its potential for innovation and advancement in the scientific realm.

Source- The Hindu