Science and Technology Development in India

Introduction

India ranks third among the most attractive investment destinations for technology transactions in the world. Dr Harsh Vardhan, Union Minister of Department of Science & Technology, has reiterated that technology is a strong priority area for the government and it aims to make people science-centric. Modern India has had a strong focus on science and technology, realising that it is a key element of economic growth. India is among the topmost countries in the world in the field of scientific research, positioned as one of the top five nations in the field of space exploration. The country has regularly undertaken space missions, including missions to the moon and the famed Polar Satellite Launch Vehicle (PSLV).

India is likely to take a leading role in launching satellites for the SAARC nations, generating revenue by offering its space facilities for use to other countries.

Market size

India ranks 6th position for scientific publications and ranks at 10th for patents which included only resident applications.* The number of patent applications filed by the Indian scientists and inventors increased to 47,857 in FY18 from 46,904 in FY16. India ranks 13th position at the Nature Index in 2017, based on counts of high-quality research outputs in natural sciences.

India improved its rank on the Global Innovation Index for the second year consecutively. From being ranked at the 81st position in 2015, India improved its ranking to 66th in 2016 and further to 60th in 2017.

The Government of India is extensively promoting research parks technology business incubators (TBIs) and (RPs) which would promote the innovative ideas till they become commercial ventures. India is world’s third largest technology startup hub with incorporation of 1,000 new companies in 2017.

The engineering R&D and product development market in India is forecasted to grow at a CAGR of 20.55 per cent to reach US$ 45 billion by 2020 from US$ 28 billion in FY18

Developments/Investments:

With support from the government, considerable investment and development has incurred in different sectors such as agriculture, healthcare, space research, and nuclear power through scientific research. For instance, India is gradually becoming self-reliant in nuclear technology.

Recent developments

Some of the recent developments in the field of science and technology in India are as follows:

• As per the Government records, the number of Indian scientists coming back to India to pursue research opportunities has increased from 243 in 2007-2012 to 649 between 2012 and 2017 . In the span of 5 years 649 Indian scientists have returned to pursue research opportunities.
• India's space business to witness tremendous growth in the next five years, on the back of technology advancement, global space business opportunity and a sharp rise in Indian Space Research Organisation’s (ISRO) satellite launch capability.

Investment Scenario

• GridRaster Inc, working in the virtual and augmented reality space, has raised US$ 2 million as seed funding, which will be used for marketing and product development.
• India’s R&D investments forecasted to increase to US$ 83.27 billion in 2018 from US$ 76.91 billion in 2017.

Government Initiatives

• In February 2018, Union Ministry of Science and Technology developed an interface to enable transfer of technologies from Council of Scientific and Industrial Research (CSIR) laboratories to small-scale industries.
• In February 2018, the Union Cabinet has approved implementation of 'Prime Minister Research Fellows (PMRF)' scheme, which will promote the mission of development through innovation, at a total cost of Rs 1,650 crore (US$ 245.94 million) for a period of seven years beginning 2018-19.
• In February 2018, Union Government of India announced grant of Rs 1,000 crore (US$ 155.55 million) for the second phase of Impacting Research Innovation and Technology (IMPRINT), a fund created by Department of Science and Technology and Ministry of Human Resource and Development.
• The Government of India granted Atal Innovation Mission with US$ 24.84 million will boost the academicians, entrepreneurs and researchers to work towards innovation.

The Union Budget 2018-19

• The allocation to the Department of Science and Technology (DST) has been increased by 8.21 per cent to Rs 5,114.78 crore (US$ 790.05 million) as against the previous budget.
• The budget for the Ministry of Science and Technology, has been increased by 6.11 per cent to Rs 12,322.28 crore (US$ 1.9 billion) as against the previous budget.
• The Department of Atomic Energy has been allocated Rs 13,971.41 crore (US$ 2.16 billion), an increase of 5.76 per cent against the previous budget.
• The Ministry of Earth Sciences was allocated Rs 1,800 crore (US$ 278.04 million), which is an increase of 12.66 per cent as against the previous budget.

The Road Ahead

India is aggressively working towards establishing itself as a leader in industrialisation and technological development. Significant developments in the nuclear energy sector are likely as India looks to expand its nuclear capacity. Moreover, nanotechnology is expected to transform the Indian pharmaceutical industry. The agriculture sector is also likely to undergo a major revamp, with the government investing heavily for the technology-driven Green Revolution. Government of India, through the Science, Technology and Innovation (STI) Policy-2013, among other things, aspires to position India among the world’s top five scientific powers. Indian Space Research Organisation (ISRO) will launch its first Indian human mission by 2022.

Exchange Rate Used: INR 1 = US$ 0.0149 as of Q1 FY19.

References – Media reports, Press Releases, Press Information Bureau (PIB), Union Budget 2016-17

Notes - * - rank as of FY18

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.