The Anusandhan National Research Foundation (ANRF) seeks to provide funding access to private companies with commercially viable research proposals

Poor spending on R&D has been the bane of Indian science. The highly bureaucratised science administration, stifling regulations and failure to involve the private sector have ensured that the country lagged behind global leaders in innovative research. India’s share of investment in R&D as a percentage of GDP is a mere 0.65% while the advanced countries spend between 1.5% and 4.5%. The United States, Sweden, and Switzerland spend about 2.9%, 3.2% and 3.4% respectively. Israel spends 4.5% of its GDP, the highest in the world. This Underinvestment means fewer grants, outdated equipment, and limited resources for researchers. Against this gloomy backdrop, the NDA government’s approval for an ambitious Rs 1 lakh crore fund—under the aegis of Anusandhan National Research Foundation (ANRF) — provides hope for the future. This fund is meant to stimulate private sector investment in core research and development. While there have been schemes before to facilitate research and development, the unique feature of this scheme is that the funds — primarily in the form of low-interest, long-term loans — will be available to private companies to develop novel products and new intellectual property. Although state-run universities and colleges are home to 95% of the students, their research capabilities are far from encouraging. The ANRF, originally announced in 2023, aims to close this gap, drawing inspiration from the United States’ National Science Foundation (NSF). In the US model, after academic researchers have established a concept, the industry steps in to commercialise it.

The ANRF wants to replicate this collaboration to ensure that research translates into real-world impact. This initiative signals a crucial shift in the country’s approach to scientific advancement — one that places the private sector at the forefront of the nation’s research ecosystem and will, hopefully, help in bridging the long-standing divide between academia and the industry. The new scheme seeks to provide funding access to private companies with commercially viable research proposals. Unlike traditional grant-based schemes, this initiative emphasises applied research with clear commercial potential. This focus on tangible outcomes may ensure that the investment translates into new products, patents and economic growth. However, its success hinges on effective implementation, transparent selection criteria and the ability to attract industry participation beyond a few dominant sectors like pharmaceuticals and defence. While this move is promising, the government must also strengthen academia-industry collaboration, streamline bureaucratic hurdles and create incentives for long-term innovation rather than short-term gains. The growing number of patents filed by Indians underscores potential for innovation, giving power to the government’s ambitious plan. As India aspires for a place on the global high table on scientific innovation, it becomes imperative for the government to acknowledge the elephant in the room and start addressing the issues that hinder the progress of the research ecosystem. The country needs to increase the R&D spending to 3% of the GDP to achieve the desired results in the long run.