What is outcome of the NITI Aayog Study on India’s R&D expenditures?
As per NITI Aayog’s India Innovation Index 2021, gross expenditure on research and development (R&D) in India is lowest in the world. India spends USD 43 per capita on R&D. India Innovation Index was recently released by NITI Aayog, providing ranks to states and union territories based on their innovation performance.
NITI Aayog says,
- India needs to increase this expenditure, in order to be on a par with the BRICS or ASEAN countries.
- Russia spends USD 285 per capita, Brazil spends USD 173 while Malaysia spends USD 293, on the R&D.
- Gross expenditure on R&D (GERD) in India, as a percentage of GDP has remained consistent on 0.7% for about a decade.
- India’s expenditure is lower as compared to Brazil (1.16%) and South Africa (0.83%).
- Only Mexico (0.31%) had a lower share of GERD as percentage of GDP, than India.
- Despite low expenditure on R&D, India has published more research papers as compared to countries like Russia, Brazil, and South Korea.
According to Government’s think tank, government spends more than 55% on R&D which needs to be changed. It needs to find an inflexion point after which private sector can to the task. Though, businesses or private sector led R&D has been increasing rapidly from 2005-06. But it is not fast enough to overtake government led R&D. In order for India to be on a par with developed countries; it needs to encourage R&D by businesses, so that, it could intersect the government led R&D and rise.
Month: Current Affairs - July, 2022
Category: Economy & Banking Current Affairs - 2024