In a groundbreaking move to foster research and development (R&D) within the private sector, Finance Minister Nirmala Sitharaman, during the Interim Budget 2024 announcement, disclosed the establishment of a substantial financial corpus amounting to INR 1 lakh crore. This corpus aims to provide low-cost or interest-free loans, extending up to 50 years, specifically dedicated to fueling research and innovation endeavors within the private industry.
Golden Era for Tech-Savvy Youth
- Private companies eligible for interest-free loans for 50 years.
- INR 1 lakh crore corpus facilitating long-term financing or refinancing.
- Encouraging significant scaling up of research and innovation in emerging domains.
Building on Prior Initiatives
- Aligns with government efforts to boost private sector participation in research activities.
- National Research Foundation (NRF) established last year with a spending target of INR 50,000 crore over the next five years.
- Over 70% of NRF funding expected from the private sector.
Fostering Innovation Environment
- Principal Scientific Advisor, Ajay Sood, anticipates increased private sector spending on R&D.
- Budgetary provision designed to create an environment conducive to innovation.
- NRF focusing on qualitative and quantitative enhancement of the country’s research output.
Deep Tech Policy on the Horizon
- Comprehensive national policy on deep-tech start-ups under finalization.
- Extending beyond defense, the policy targets all sectors.
- Aims to address challenges faced by start-ups in advanced technologies, fostering improved outcomes.