Indian Economy News

Rs. 20,000 crore (US$ 2.30 billion) for research, artificial intelligence (AI), geospatial initiatives to drive research & development (R&D): Industry

  • IBEF
  • February 4, 2025

The Union Budget 2025-26 has allocated significant resources to strengthen India’s research and development (R&D) ecosystem, with a Rs. 20,000 crore (US$ 2.30 billion) fund for the Department of Science and Technology to promote private-sector innovation and foster Artificial Intelligence (AI), geospatial initiatives, and Atal Tinkering Labs. Union Minister of Finance and Corporate Affairs, Mrs. Nirmala Sitharaman, also announced the establishment of 50,000 Atal Tinkering Labs over the next five years to inspire young minds and drive scientific innovation. Industry leaders, such as Mr. Shirshendu Mukherjee of Wadhwani Innovation Network, praised these measures, noting that they demonstrate the government’s commitment to fostering innovation and positioning India as a leader in emerging technologies. The focus on industry-academia collaboration, commercialization of research, and scalable funding models is seen as essential to accelerate India’s growth in AI and digital transformation. 

However, some experts believe further efforts are needed to sustain and amplify these investments. CFO of Sukhbir Agro Energy Limited (SAEL) Mr. Dushyant Chachra emphasized the need for a more comprehensive strategy in the energy sector. At the same time, Senior Associate Professor at Great Lakes Institute, Mr. Vishwanathan Iyer, called for deeper tax incentives and corporate R&D spending to foster private sector involvement. Emeritus Scientist Mr. Bharat Kale, noted that India’s R&D spending still lags countries like China, Japan, and Korea, highlighting the need for increased government and industry investment. The Department of Science and Technology's massive budget increase to Rs. 23,290 crore (US$ 2.67 billion) in 2025-26 is expected to support various projects, including quantum computing and supercomputing, further boosting India’s innovation capacity. 

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

Partners
Loading...