NITI Aayog: India's R&D expenditures one of the lowest worldwide

NITI Aayog: India’s R&D expenditures one of the lowest worldwide

According to a report by the government think tank NITI Aayog and the Institute for Competitiveness, India has among of the lowest R&D expenditures worldwide.

According to a report by the government think tank NITI Aayog and the Institute for Competitiveness, India has among of the lowest R&D expenditures worldwide. In fact, R&D spending in India has decreased, falling from 0.8 percent of GDP in 2008-09 to 0.7 percent in 2017-18. According to data, India has a lower GERD than the other BRICS countries. Spending amounts for Brazil, Russia, China, and South Africa are respectively 1.2 percent, 1.1 percent, over 2 percent, and 0.8 percent. Around 1.8 percent is the global average.

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KEY POINTS:

According to the India Innovation Index 2021, India has generally spent a small amount of money on research and development. The overall share of gross expenditure on R&D (GERD) as a percentage of GDP, which was roughly 0.7 percent, reflected this.
The United States, Sweden, and Switzerland are developed nations that spend roughly 2.9 percent, 3.2 percent, and 3.4 percent, respectively.
The biggest R&D expenditure per GDP is made by Israel, which is 4.5 percent.
The fact that expenditures in R&D take time to yield benefits is one of the explanations given for the low spending on R&D in emerging nations like India.
Authorities focus resources on addressing these concerns since they are more prevalent in nations like India, where they include reducing hunger, combating sickness, and improving quality of life.

Brain Drain Phenomenon:

People may relocate to another region, state, or nation in search of better prospects due to lower R&D funding and less inventive opportunities. This Phenomenon is known as Brain Drain Phenomenon. Brain drain is a phenomena that weakens a state’s competitive advantage and has a negative influence on the economy of the entire nation.

India and declining research output:

India’s GERD needs to significantly improve and reach at least 2 percent in order for the country to reach its aim of having a $5 trillion GDP.
At $43 per person, India has one of the lowest rates of GERD worldwide. India performs far worse than its BRICS and ASEAN rivals Brazil, Malaysia and Russia.
According to the data, only Mexico had a lower share of GERD as a percentage of GDP at $0.31.
Over the years, numerous businesses, professionals, and even the RBI have called attention to the subpar R&D performance.
The report notes that there has also been evidence of a disconnect between what is taught at the university level and what is needed in the workplace.
Recently, Infosys co-founder Kris Gopalakrishnan made the case that more private sector investment in R&D is necessary.