In the PSUs, it has become mandatory that all CPSEs will set up innovation cells that will work on market-oriented research.
Even as India aims at a $5 trillion economy goal, the country’s investment in research and development is far less than the countries like China, Korea, and the US. R&D plays an important role in boosting efficiency and capacity, which forms the backbone of economic development. “India needs huge investment in R&D and the investment should come both from the government and industry,” Ravinder, Joint Secretary, Department of Industrial Policy & Promotion, said in an event today.
While countries like the US, China, Israel, and Korea spend 2.5 per cent to 4.5 per cent, India spends only 0.6 per cent to 0.7 per cent of GDP on research and development activities, the Department of Industrial Policy and Promotion said in a report earlier this year. A major issue with the R&D expenditure in India is that the private players are not participating whole-heartedly.
“Government expenditure, almost entirely the Central Government, is the driving force of R&D in India which is in contrast to the advanced countries where the private sector is the dominant and driving force of R&D spend,” Seema Bahuguna, Secretary, Department of Public Enterprises had said while addressing the special session on India’s R&D expenditure ecosystem.
#India???????? need a huge investment in R&D and investment should come both from Govt and Industry. Such conclave can play an important role to bridge the gap. ~ Ravinder, Joint Secy, @DIPPGOI at #CIIRnDecosystemConclave @DefenceMinIndia @SpokespersonMoD @prinsciadvgoi @prinsciadvoff pic.twitter.com/WTMmIBcajI
— CII Live (@CIIEvents) December 17, 2019
Especially in application-oriented research and technology development, there is a need for greater participation of state governments and the private sector. In the PSUs, it has become mandatory that all CPSEs will set up innovation cells that will work on market-oriented research. It has also been informed that over 150 such innovation cells have been set up by CPSEs where research is going on.