Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
3. Research and Development (R&D) plays a critical role in determining the productivity and economic growth of a nation, Discuss the relevance of harnessing private sector investments to improve the spendings on R and D in the country.(250 words)
Reference: The Hindu
Why this question:
In an effort to stimulate investment in research and development (R&D), the Department of Science and Technology is mooting a fund that will match the contributions made by private companies in R&D. Thus the context of the question.
Key demand of the question:
The answer must discuss the significance and relevance of harnessing private sector investments to improve the spendings on R&D.
Directive:
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
Introduction:
Explain the Research and Development investments scenario in India.
Body:
Highlight the present situation of low expenditures in the R&D sector. Substantiate with suitable facts such as – The total expenditure on R&D in India has tripled in the last decade in nominal terms. However, as a fraction of GDP, public expenditures on R&D have been stagnant over the years. It is between 0.6-0.7percent of GDP over the past two decades. Discuss the public sector dominance in the sector. Explain what is the present idea of harnessing the private sector investments for betterment of the R&D sector.
Conclusion:
Conclude with benefits of such policies and assert the significance of R&D for the growth and development of the country.
