2nd February 2024 (10 Topics)
Government moots ?1 lakh-crore corpus for research and development in interim Budget
Context
The amount will be available on ‘minimal or nil interest rates’ to ‘encourage’ the private sector to invest in research and development in ‘sunrise sectors’.
Boosting Research and Innovation: Finance Minister's Vision in the Interim Budget
A Commitment to Tech-Savvy Youth
- India's tech-savvy youth: In a bid to bolster research and innovation for India's tech-savvy youth, Finance Minister Nirmala Sitharaman, during her Interim Budget speech announced a significant corpus of ?1 lakh crore.
- Encourage private sector investment: The funds are poised to be available at minimal or nil interest rates to encourage private sector investment in research and development within sunrise sectors.
Broad-Based Encouragement for Research
- Public and private sectors investment: The Finance Minister's initiative envisions both the public and private sectors investing in research and development, signaling a broad-based encouragement for advancements in technology and innovation. V.K. Saraswat, Member of NITI Aayog (science and technology), emphasized the positive aspects of the initiative.
Budget 2024 Updates
National Research Foundation Bill Clears Significant Hurdles
- National Research Foundation Bill: In 2023, the Science Ministry achieved a milestone by clearing the National Research Foundation Bill. Piloted by the Department of Science and Technology (DST), this bill outlines the establishment of an autonomous body with a corpus of ?50,000 crore.
- Nearly ?36,000 crore is expected to come from the private sector and non-governmental sources, addressing the longstanding concern of limited private sector investment in core research and development.
Uncertain Connection with the New Corpus
- National Research Foundation (NRF): It remains unclear whether the newly announced corpus of ?1 lakh crore has a direct connection to the National Research Foundation (NRF).
- Despite modest allocations to civilian science departments, the DST has provisioned ?2,000 crore in 2024-25 towards the NRF.
Prioritizing Key Areas in Research Funding
- Civilian science departments: Budget allocations for civilian science departments, including the DST, the Department of Biotechnology, the Council of Scientific and Industrial Research, and the Ministry of Earth Sciences, witnessed modest increases.
- National Quantum Mission: Notably, the National Quantum Mission secured ?2,819 crore, reflecting a commitment to advancing quantum technologies.
New Scheme for Deep-Tech Technologies
- Strengthening deep-tech technologies: Finance Minister Sitharaman announced a new scheme aimed at strengthening deep-tech technologies for defense purposes and expediting 'atmanirbharta' (self-reliance).
- Deep-tech start-ups: The specifics of the scheme were not provided, but it underscores the commitment to fostering proprietary technologies in areas like artificial intelligence through deep-tech start-ups.
Budget Cuts and Explanation
- Department of Biotechnology and the Ministry of Earth: The Department of Biotechnology and the Ministry of Earth Sciences saw reductions in allocations, explained by budget spreads over multiple years and difficulties in spending the allotted amounts within the prescribed financial years.
- However, the overall assessment of 'Research and Development' spending received a boost, with ?13,208 crore allotted for 2024-25.
Way Forward: The Interim Budget's emphasis on research and innovation signifies a strategic push towards technological advancements and self-reliance, with a keen focus on encouraging private sector participation in research and development. However, the success of the initiatives hinges on effective implementation and detailed execution plans yet to be unveiled.
Courses
Study
Notes
Home
Resources
More
