Topic: Issues relating to development and management of Social Sector/Services relating to Health, Education
Q3. Examine the implications of India’s stagnating R&D expenditure as a percentage of GDP. Discuss why private sector participation remains limited despite policy intent. Suggest policy and governance measures to crowd-in private R&D. (15 M)
Difficulty Level: Medium
Reference: TH
Why the question
India’s ambition for strategic autonomy in semiconductors, biopharma, climate-tech and quantum requires a strong R&D base, but the stagnation of R&D spending as a share of GDP and weak private participation raise governance concerns.
Key Demand of the question
The question requires you to explain the consequences of low R&D intensity for national capability, then diagnose why private firms do not invest sufficiently in indigenous R&D despite policy intent, and finally suggest policy and governance reforms to crowd-in private research investment.
Structure of the Answer
Introduction
Open with India’s R&D intensity stagnation and link it to the mismatch between mission announcements and capability-building for a knowledge economy.Body
- Write implications such as strategic dependence, weak innovation pipeline, talent constraints, and reduced problem-solving capacity for health/climate/industry.
- Then explain reasons for low private R&D like risk aversion, weak university-industry linkages, regulatory uncertainty, shallow deep-tech capital, and limited demand for frontier innovation.
- Finally suggest reforms such as credible ANRF funding, mission-linked co-funding, innovation procurement, tax and IPR incentives, cluster-based university partnerships, and governance simplification with accountability.
Conclusion
End with a forward-looking line that India’s growth strategy must shift from technology adoption to technology creation through predictable public funding and private risk-sharing.
