National Quantum Mission

Indian Economy glossary

Also called: NQM · Topic: Government Budget, Fiscal Policy and FRBM · NCERT: Beyond NCERT

Meaning

The National Quantum Mission (NQM) is a Union government programme, approved by the Union Cabinet on 19 April 2023, to build Indian research and industrial capacity in quantum technologies. It has an outlay of ₹6,003.65 crore over 8 years and is implemented by the Department of Science & Technology (DST). The work is organised through four Thematic Hubs (T-Hubs): Quantum Computing; Quantum Communication; Quantum Sensing & Metrology; and Quantum Materials & Devices.

It matters for economics students because it is a good case study of public spending on frontier research. It shows what the budget's allocation function looks like in practice. It also shows the gap between money approved and money actually spent, which is what the "quality of expenditure" debate is about.

Explanation

How the mission is built

  • Approval and money
  • The Union Cabinet approved it on 19 April 2023.
  • The total outlay is ₹6,003.65 crore for 8 years.

  • An outlay is the amount the government sets aside for a purpose. It is a promise to spend, not money already spent.

  • Who runs it

  • The implementing department is DST, under the Ministry of Science & Technology. It is not MeitY.

  • The top decision-making body is the Mission Governing Board (MGB). It finalised the implementation strategy and timelines.

  • The four Thematic Hubs (T-Hubs)

  • Each T-Hub is a consortium (a group of academic institutions working together).
  • The four hubs are: (1) Quantum Computing; (2) Quantum Communication; (3) Quantum Sensing & Metrology; (4) Quantum Materials & Devices.

  • Union Minister Dr. Jitendra Singh announced the setting up of the T-Hubs and Technical Groups.

  • What came before it

  • The Quantum Technology Foundation at IISER Pune was set up under the quantum technologies vertical of DST's National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS).

  • Startups

  • DST issued an NQM Startup Call for Proposals to support quantum startups.

Targets

  • Computing targets (in qubits)
  • A qubit is the basic unit of a quantum computer, as a bit is for an ordinary computer.

  • Targets: 20–50 physical qubits in 3 years, 50–100 in 5 years, and 50–1000 in 8 years.

  • Gap in reporting

  • Replies to Parliament repeat these targets. They do not say how many qubits have been built so far.
  • This means it is hard to check results against the money spent.

Why the state funds it: the budget logic

  • Allocation function
  • The budget provides goods the market under-supplies.
  • Basic research is partly like a public good: many people can use new knowledge at the same time (non-rival), and it is hard to stop others from benefiting (non-excludable).

  • Because of the free-rider problem (people use a benefit without paying for it), private firms invest too little in research. So the state funds it.

  • Public provision vs public production

  • The NQM pays for the research through the budget (public provision).
  • The work itself is done by academic hubs and startups, not by a government factory.

  • So the government is not doing the public production itself.

  • Revenue or capital expenditure? (a trap)

  • Under budget classification, grants given to others count as revenue expenditure, even when those grants build assets such as labs.
  • So if mission money reaches institutions as grants, it appears on the revenue side, even though it builds long-term capacity.

Worked example: approved vs spent

  • Average per year if spread evenly: ₹6,003.65 crore ÷ 8 ≈ ₹750 crore a year.
  • The plan: ₹704.10 crore for Year 1 and ₹1,178.65 crore for Year 2.
  • Actual spending by March 2025: only ₹43.07 crore, almost two years after approval.

  • ₹43.07 ÷ ₹704.10 ≈ 6% of the Year 1 plan alone.

  • 2024–25: ₹86 crore allocated, ₹43.07 crore released, ₹32.77 crore used.

  • Released ÷ allocated = 43.07 ÷ 86 ≈ 50%.
  • Used ÷ released = 32.77 ÷ 43.07 ≈ 76%.

  • Used ÷ allocated = 32.77 ÷ 86 ≈ 38%.

  • Lesson: the headline outlay tells you the ambition. The utilisation ratio (money used ÷ money allocated) tells you what is actually happening.

In India

  • Institutions: DST implements the mission. The Mission Governing Board guides it. Four T-Hubs, which are consortia of academic institutions, do the research.
  • Legal basis: this is an executive mission approved by the Union Cabinet, not a law. Its money comes through DST's demands for grants, which the Lok Sabha votes on each year under Art. 113.
  • Latest figures:
  • Total outlay: ₹6,003.65 crore over 8 years (approved 2023).
  • Spending by March 2025: ₹43.07 crore.
  • 2024–25: ₹86 crore allocated, ₹43.07 crore released, ₹32.77 crore used.

  • Research base: 152 researchers from 43 institutions across the four T-Hubs.

  • Accountability tools: the outcome budget (in use since 2005-06) is meant to link a ministry's spending to measurable outputs. Qubit counts would be such outputs for the NQM.

Don't confuse with

  • NM-ICPS: this is DST's earlier mission on cyber-physical systems. The Quantum Technology Foundation at IISER Pune sits under it. The NQM is the separate, dedicated quantum mission approved in 2023.
  • Outlay vs actual expenditure: the outlay (₹6,003.65 crore) is the amount approved over 8 years. Actual spending by March 2025 was only ₹43.07 crore.
  • Allocated vs released vs utilised: in 2024–25 these were ₹86 crore, ₹43.07 crore and ₹32.77 crore. Exam questions can swap these numbers.
  • Grant for asset creation vs capital expenditure: grants to institutions are revenue expenditure even if they build labs. Only the Centre's own asset purchases, investments and loans count as capital expenditure.

Prelims Hooks

  • NQM was approved by the Union Cabinet on 19 April 2023, with ₹6,003.65 crore over 8 years.
  • The implementing department is DST, not MeitY or DAE.
  • There are four T-Hubs: Computing, Communication, Sensing & Metrology, Materials & Devices.
  • The apex body is the Mission Governing Board (MGB).
  • Qubit targets: 20–50 (3 years), 50–100 (5 years), 50–1000 (8 years).
  • The Quantum Technology Foundation at IISER Pune comes under DST's NM-ICPS.

Mains Points

  • Big outlay, slow spending
  • Only ₹43.07 crore was spent by March 2025, against a Year 1 plan of ₹704.10 crore.
  • Only ₹32.77 crore of the ₹86 crore allocated for 2024–25 was used.
  • Low utilisation delays results, so the headline outlay overstates the real effort.

  • Answers can link this to the outcome budget and the need to publish progress, such as qubits built, alongside money spent.

  • Why the state must lead in frontier R&D

  • Basic research has public-good features and long payback periods, so markets under-invest in it. This justifies the allocation function.

  • The model mixes public money with academic hubs and startups. It is an example of public provision without public production.

  • Capacity is the binding constraint

  • 152 researchers from 43 institutions is a thin base for four technology verticals.
  • Faster spending alone will not fix this. Talent pipelines, startup support and steady multi-year funding matter as much as the size of the outlay.

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