Financing of S&T in India

In this paper we assess the changes experienced in the pattern of public funding of science and technology (S&T) at the national and state levels since the launch of economic reforms in India. First, it brings out that though more recently an improvement has been experienced in the gross budgetary support for S&T expenditure vis-à-vis other socio-economic activities but research and development (R&D) expenditure as a percentage of GDP is still the lowest among the BRICS group of countries. A comparative assessment of the current level of per capita national R&D expenditure also shows that the country is spending far less on R&D than the BRICS group of countries. Second, analysis indicates that during the period of economic reforms mainly strategic S&T investments experienced an increase in their shares within publicly funded S&T. Assessment of the latest shares of civilian and strategic S&T departments shows that in the more recent allocations about sixty-four percent of investment in science and technology is going to the strategic S&T organizations, namely Defence Research and Development Organization (30.3%), Department of Atomic Energy (12.2%) and Department of Space (21.3%). Third, it also indicates that though in terms of sectoral contributions the share of Central Government itself declined from 79% to 71% in percentage terms, but the Central Government is still a major source of funds for the conduct of activities of civilian R&D in India. Fourth, it shows that while the share of private sector in national R&D expenditure increased but the private sector R&D intensity did not rise during the period of economic reforms. Fifth, it indicates that the central government dependent pattern of public funding of S&T continued. The share of state governments in S&T investment increased only for the states of Gujarat, West Bengal and Maharashtra. Sixth, analysis of the pattern of extra-mural research (EMR) project funding indicates that its share in total S&T funding has decreased from the earlier level of nine percent to seven percent of expenditure on S&T by Central Scientific Departments. Seventh, it also indicates that the strategic S&T departments, receiving close to 63.8 % of the S&T outlays, provide only 7.77 % of the total EMR funds. The share of EMR funds is also small and decreasing in the case of socio-economic ministries. Eighth, it points out that though the share of public funding for thematic research is now higher than academic research schemes but the share of innovation-targeted research schemes still account for only 1 % of the total EMR funding. Ninth, analysis of the EMR projects indicates that the same top ten institutions continue to attract a significant share of EMR funding. Tenth, the main change observed during the period of economic reforms relates to the fact of increased R&D funding to business enterprises for technology development from the government. In both, the S&T departments as well as the user departments, the Central Government could establish a wide variety of mechanisms for aiding the industry in technology development. It concludes with the suggestion that however socio-economic ministries and state level S&T councils are still in the need of a higher level of support to give a boost to research & technology development (RTD) for civilian areas. Societal users have much less support and need to be mobilized to play a larger role in the sphere of technology development