The Union Cabinet recently approved a ?1-lakh crore Research, Development and Innovation (RDI) scheme, to be anchored by the Anusandhan National Research Foundation (ANRF). The aim is to increase private sector participation in basic scientific research, with a long-term goal of reversing the existing 70:30 public-private R&D funding ratio.

The RDI Scheme and ANRF Framework

• ANRF as a Central Hub: The ANRF is designed as a single-window mechanism for funding research across Indian academia, universities, and private institutions, modeled to streamline fragmented R&D efforts.
• Public-Private Responsibility: The scheme envisions 70% of ANRF funding from private sources, while offering low-interest loans for TRL-4 and above innovations, signifying a shift from grants to credit-based support.
• Redefining Stakeholder Roles: By attempting to reduce government dominance in R&D investment, the scheme signals a paradigm shift toward private-led innovation ecosystems, mirroring models in developed economies.

Critical Concerns and Design Limitations

• Technology Readiness Level (TRL) Restriction: The eligibility is limited to TRL-4 or above, excluding early-stage or foundational research, which might deter genuinely innovative but untested ideas, risking exclusion of transformational breakthroughs.
• Missing the Role of State-driven Risk Capital: The design fails to replicate the military-industrial innovation complex of the U.S. and EU where government funds high-risk, high-cost innovation with potential for both military and civilian benefits (e.g., Internet, GPS).
• Brain Waste and Inadequate Research Infrastructure: India continues to lose top scientific talent to the West, due to the lack of attractive, well-funded, and risk-tolerant research ecosystems domestically; RDI cannot solve this without academic and infrastructural reforms.

Deeper Structural Bottlenecks

• Weak Domestic Manufacturing: India lacks a high-precision, skilled manufacturing base to convert laboratory innovations into scalable products, which undermines the end-to-end innovation pipeline.
• Fiscal Constraints: A budgetary infusion, even one as ambitious as ?1 lakh crore, cannot compensate for decades of underinvestment in scientific manpower development, institutional autonomy, and foundational research quality.
• Risk Aversion: The scheme’s low appetite for risk and preference for mature technologies reflects an administrative conservatism inconsistent with the needs of radical innovation or disruptive technologies.

Practice Question:

India's efforts to enhance private sector investment in scientific research have often fallen short due to structural, financial, and institutional bottlenecks. Critically evaluate the recently launched ?1 lakh crore Research, Development and Innovation (RDI) scheme in this context. Also, suggest measures to improve the innovation ecosystem in India.    (250 words)