India Boosts Private-Sector Innovation with Rs 20,000 Crore R&D Fund

Union Finance Minister Nirmala Sitharaman announced a Rs 20,000 crore allocation to the Department of Science and Technology to promote private sector innovation. The move aims to boost research and development in deep tech and sunrise sectors, addressing the low R&D investment by private enterprises despite government incentives.

In a significant move towards fostering innovation, Union Finance Minister Nirmala Sitharaman has allocated Rs 20,000 crore to the Department of Science and Technology. This allocation, announced during Saturday's budget presentation, is designed to bolster private sector engagement in research and development.

The fund is part of a larger Rs 1 lakh crore initiative unveiled in July, seeking to advance development in emerging technologies and sunrise sectors. This year's budget aims to kickstart the initiative and provide strategic autonomy in critical tech fields.

Despite government incentives, the private sector has been reluctant to ramp up R&D investment. The Economic Survey highlighted this concern, noting that business enterprises contribute only 41% of national R&D spending. Additional budget increases have been made across various departments to support these efforts.

(With inputs from agencies.)