PARLIAMENT QUESTION: R&D EXPENDITURE

1. At a Glance

• GERD (Gross Expenditure on R&D) in India is 0.6–0.7% of GDP, well below the OECD average (~2.7%) and major peers; flagged in a Parliament Question reply by Ministry of Science & Technology on 05 Feb 2026 [S1].
• India's Global Innovation Index (GII) rank rose from 81st (2015) → 38th (2025), but absolute R&D spend remains the binding constraint on tech-manufacturing ambitions [S1].
• Examiner-relevant because it ties GS-III S&T + Economy to live schemes — ANRF, ₹1 lakh crore RDI Fund, National Quantum Mission [S1][S2][S3].

2. Why in the News

• Lok Sabha unstarred question answered 05 Feb 2026 by MoS S&T Dr Jitendra Singh placing GERD at 0.6–0.7% of GDP on record [S1].
• RDI Scheme (₹1 lakh crore) approved by Union Cabinet on 01 Jul 2025 and launched 03 Nov 2025 — operationalisation rolling out through 2025-26 [S3].
• ANRF Act, 2023 came into force 05 Feb 2024; Executive Council took key operationalisation decisions in 2025 [S2][S3].

3. Background & Evolution

• Science Policy Resolution 1958 → Technology Policy Statement 1983 → STIP drafts 2020 — historical aspiration to raise GERD to 2% of GDP never met.
• 2013 STI Policy target: lift GERD to 2% by end of 12th Plan — missed; share stagnant at ~0.7% [S1].
• NEP 2020 recommended establishment of National Research Foundation.
• Anusandhan NRF Bill passed by Lok Sabha & Rajya Sabha in Aug 2023; Act commenced 05 Feb 2024 [S2].
• RDI Scheme approved 2025 to crowd-in private R&D, which contributes <40% of GERD in India vs >65% in OECD [S3].

4. Core Static Facts

• GERD: 0.6–0.7% of GDP [S1].
• GII rank: 38th (2025); 81st (2015) — published by WIPO [S1].
• Nodal ministry: Ministry of Science & Technology (Department of Science & Technology — DST) [S1][S2].
• ANRF:
• Set up under Anusandhan National Research Foundation Act, 2023 [S2].
• In force: 05 Feb 2024 [S2].
• Five-year (2023-28) corpus target: ₹50,000 crore — of which ₹14,000 crore from Central Govt, remainder from private/PSU/philanthropic/international sources [S2].
• BE 2024-25: ₹2,000 crore; RE 2024-25: ₹966 crore [S2].
• Subsumes the erstwhile Science and Engineering Research Board (SERB) [S2].
• RDI Scheme:
• Corpus ₹1,00,000 crore over 6 years [S3].
• Two-tier: Special Purpose Fund (SPF) within ANRF → 2nd-tier fund managers as long-tenor, low/nil-interest loans [S3].
• Cabinet approval 01 Jul 2025, launch 03 Nov 2025 [S3].
• Sunrise sectors: energy transition, quantum, robotics, space, AI, biotech/biomanufacturing, pharma & med devices, digital economy [S3].
• National Quantum Mission — flagship referenced in the PIB reply [S1].

5. Multi-Dimensional Analysis

Economic - Low GERD/GDP correlates with weak private-sector R&D — RDI Fund aims to crowd-in industry via concessional debt [S3]. - ₹1 lakh crore RDI corpus channelled through ANRF reduces market-failure gap in long-gestation deep-tech [S3].

Scientific / Technological - Sunrise basket (quantum, AI, biomanufacturing, space) aligns with National Quantum Mission and Semiconductor Mission [S1][S3]. - ANRF mandate covers universities, colleges, R&D labs — addresses thin research base outside elite IITs/IISc [S2].

Administrative / Governance - ANRF chaired by Prime Minister; Union Ministers of S&T and Education are ex-officio Vice-Presidents — high political signalling but raises capacity-vs-autonomy questions [S2]. - 72% of ANRF five-year corpus expected from non-government sources — execution risk if private mobilisation lags [S2].

Geopolitical / Strategic - Closing GERD gap is framed as prerequisite to "high-tech manufacturing hub" positioning vis-à-vis China (GERD ~2.4%) and US (~3.5%) [S1]. - GII jump 81→38 used as soft-power metric in multilateral S&T diplomacy [S1].

6. Recent Developments (last 12-18 months)

• 05 Feb 2024 — ANRF Act commences [S2].
• 01 Jul 2025 — Union Cabinet approves RDI Scheme (₹1 lakh crore) [S3].
• 03 Nov 2025 — RDI Scheme launched [S3].
• 2025 — ANRF Executive Council approves operationalisation decisions on RDI Fund [S3].
• 05 Feb 2026 — Parliament reply reiterates GERD at 0.6-0.7% and GII at 38 [S1].

7. Prelims Hooks

• India's GERD = 0.6–0.7% of GDP as per Feb 2026 MoS&T reply [S1].
• India's GII 2025 rank = 38; was 81 in 2015 [S1].
• GII is published by WIPO (not WEF, not UNESCO) [S1].
• ANRF Act enacted 2023; came into force 05 Feb 2024 [S2].
• ANRF five-year corpus = ₹50,000 crore (2023-28); Centre's share ₹14,000 crore [S2].
• ANRF subsumes SERB [S2].
• ANRF President = Prime Minister ex-officio [S2].
• RDI Scheme corpus = ₹1 lakh crore over 6 years [S3].
• RDI Cabinet approval — 01 July 2025; launch — 03 Nov 2025 [S3].
• RDI funds routed via a Special Purpose Fund (SPF) inside ANRF [S3].
• Nodal ministry for ANRF & RDI = Ministry of Science & Technology / DST [S1][S2].
• National Quantum Mission falls under DST [S1].

8. Mains Relevance

• GS-III: "Science & Technology — developments and their applications and effects in everyday life"; "Indian Economy — mobilization of resources."
• GS-II: Government policies and interventions; statutory bodies (ANRF).
• Plausible question stems: 1. "Despite a sharp rise in the Global Innovation Index ranking, India's R&D expenditure remains stubbornly below 1% of GDP. Examine the structural reasons and evaluate recent measures like ANRF and the RDI Scheme." (15 marks) 2. "The Anusandhan National Research Foundation marks a paradigm shift from grant-based to mission-mode research funding. Discuss." (10 marks) 3. "Crowding-in private investment is central to India's R&D ambitions. Critically assess the design of the ₹1 lakh crore RDI Scheme." (15 marks)

9. Related Topics to Study Next

• National Quantum Mission (2023) — flagship sunrise-tech mission [S1].
• National Education Policy 2020 — recommended NRF [S2].
• Science, Technology and Innovation Policy (STIP) draft — sets 2% GERD goal.
• SERB Act 2008 — body subsumed by ANRF [S2].
• Semiconductor Mission / ISM — complementary deep-tech push.
• PRIP Scheme (Pharma R&D) — sectoral R&D push under DoP.
• Global Innovation Index — WIPO methodology [S1].
• Atal Innovation Mission / Startup India — innovation pipeline upstream of RDI.

10. Common Errors / Trap Areas

• ANRF ≠ NRF (USA); Indian ANRF created by Act of 2023, not by Cabinet resolution.
• GII is published by WIPO, not WEF/UNESCO/World Bank — common Prelims trap.
• ANRF's Centre share is ₹14,000 cr, not the full ₹50,000 cr — examiners frequently swap these.
• RDI Scheme corpus ₹1,00,000 cr is over 6 years, not annual; loans, not grants.
• SERB has been subsumed, not merely renamed — confusing with continuing schemes.
• GERD figure 0.6-0.7% — do not confuse with public R&D spend alone or with DST budget.

11. Sources

• [S1] Parliament Question: R&D Expenditure — PIB, Ministry of S&T, 05 Feb 2026 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2223736 — (tier: 1)
• [S2] Anusandhan National Research Foundation — DST & PIB releases on ANRF Act 2023, allocations — https://dst.gov.in/anusandhan-national-research-foundation-anrf ; https://www.pib.gov.in/PressReleasePage.aspx?PRID=2110773 — (tier: 1)
• [S3] Cabinet Approves Research Development and Innovation (RDI) Scheme — PIB, 01 Jul 2025; operationalisation releases — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2141130 ; https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=2177845 — (tier: 1)