Budgetary allowances alone will not fix India’s research and development dilemma

Union Cabinet Approves ₹1-lakh Cr Research Development and Innovation (RDI) Scheme

• The scheme aims to incentivize private sector investment in basic research.

• The scheme will consist of a special purpose fund within the Anusandhan National Research Foundation (ANRF), which will act as the custodian of funds.

• The ANRF is an independent institution with oversight by the Science Ministry, aiming to allocate funds for basic research and incentivize private sector participation in core research.

• The government is expected to receive about 70% of its budget from private sources.

• The scheme has faced criticism for its conservatism, with only products reaching a certain level of development and market potential being eligible for funds.

• The scheme also overlooks the importance of military industrial complexes and the lack of a skilled manufacturing sector in technologically advanced countries.