There is a general agreement in India, almost a consensus, that the country needs to undertake greater research & development (R&D) to progress faster and more effectively. While this is the objective, most also agree that India's expenditure on R&D is quite low. The oft-repeated statistic (sourced from the World Bank, which aggregates national data) shows that compared to countries such as Taiwan (3.6 per cent), South Korea (4.8 per cent), China (2.4 per cent), and even Brazil (1.2 per cent), India's spend on R&D as a share of gross domestic product (GDP) is barely 0.65 per cent.
Of course, it is true that countries with higher per capita incomes do tend to spend more on R&D. India has a lower per capita income than all of these countries, so if we judge India's R&D performance by its income class, it may not fare that badly. Given its low income level, therefore, a case can be made that India's current spending on R&D is somewhere in the vicinity of the global average for its income level and size.
But that is obviously not good enough. The effort India needs to put into R&D needs to be gauged not from where it is, but where it aspires to be. If incomes need to quadruple over the next two-three decades while simultaneously addressing the inclusion and sustainability challenges, innovation will clearly need to play a key role.
With that in mind, the government has been attempting to increase expenditures on R&D, and its share of total R&D spending in India has consistently risen since the early 2010s. Currently, it accounts for over 60 per cent of the total R&D expenditure in India.
Denne historien er fra September 03, 2024-utgaven av Business Standard.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra September 03, 2024-utgaven av Business Standard.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
A yr of Israel-Hamas war: Trade with W Asia holds steady
However, trade with Israel, Lebanon, Jordan declines during January-July period
Lights, Camera, Commerce! Rajinikanth and Bachchan unite in branding mega-hit
The sharp dialogues of Andha Kanoon (1983), the captivating strains of Aana Jaana Laga Rahega from Geraftaar (1985), and the vibrant energy of Jumma Chumma De De from Hum (1991) have left an indelible mark on the memories of those who grew up in the '80s and '90s. These films celebrated the artistry of two icons of Indian cinema - Amitabh Bachchan and Rajinikanth - creating a rich tapestry of nostalgia that continues to resonate with fans.
West Asia crisis forces airlines to reroute
The closure of Iranian airspace after Iran fired missiles on Israel amid the crisis in West Asia have forced carriers to reroute various flights to Europe from Mumbai, increasing their flying duration by up to 20 minutes.
Status quo on rate; stance too may not change
Growth-inflation dynamics are shifting slowly, but the RBI may not be in a hurry to act amid too many uncertainties
A decade of Make in India
An uptick in manufacturing activity a decade since the launch of the Make in India initiative notwithstanding, India's integration with global value chains faces some challenges.
MODEL CODE OF CONSTRUCT
Apple is replicating its China model of manufacturing in India, with tweaks. How is it working out?
Money in the bank
The cash reserve ratio's use to ensure monetary stability is being debated as lenders' deposit growth slows down, reports RAGHU MOHAN
How India made M&A easier for companies
The aspirations of a young India and increased income levels have encouraged companies to consider mergers and acquisitions (M&A) to keep up with demand.
Rising home prices: Consider outskirts, in-progress projects
But be mindful of the potential drawbacks of these options and make balanced choices
Retail investors vs algos: Like lambs to slaughter
TRUTH BE TOLD