Budget 2025-26 Announcements for Scientific Research

The Budget for 2025-26 indicates significant support for scientific research and development in India.

Major Initiatives

• Small Modular Reactors: ₹20,000 crore allocated to develop five reactors by 2033.
• Research, Development, and Innovation Fund: A new initiative under the Department of Science and Technology (DST) aimed at benefiting start-ups and undefined "sunrise sectors."

Private Sector Participation

• Private sector R&D contribution is currently 36%.
• Overall R&D spending was 0.64% of GDP in 2020, the lowest since 1995.
• Business enterprises accounted for around 40% of government R&D expenditure over the last five years.
• Public sector R&D units spent only 0.30% of sales turnover on research compared to 1.46% by the private sector in 2020-21.

Financial Implications

• The government’s ₹20,000 crore infusion increases the DST’s total budgetary allocation to around ₹28,000 crore.
• This is over three times last year’s allocation and seven times the actual expenditure in 2023-24.

Challenges and Concerns

Despite India’s technological strengths, returns from core R&D and intellectual property generation are low. Challenges include:

• Inadequate infrastructure for quantum computing, artificial intelligence, and other advanced technologies.
• Essential elements like chipsets, semiconductor fabs, and a skilled workforce are lacking.

Recommendations

For effective utilization of funds and to transform India into a research powerhouse:

• Strengthen foundational infrastructure.
• Incentivize private innovation.
• Ensure sustainable engagement from industry leaders.
• Government should provide a clear roadmap for private sector access to funds and outline expected public benefits.