National Research Foundation (NRF) Bill, 2023

Context: Recently, the Union Cabinet approved the National Research Foundation (NRF) Bill, 2023.

Probable Question: Q. Discuss the key provision of the National Research Foundation (NRF) Bill and its significance in promoting Research and Development in India. Highlight the challenges faced by the R&D sector in India and suggest measures to overcome them.

 Key Provisions of National Research Foundation (NRF) Bill:

• To establish the NRF as an apex body for providing high-level strategic direction to scientific research as envisaged under the National Education Policy (NEP).
• It proposes to absorb the Science and Engineering Research Board (SERB) in NRF.

About Science and Engineering Research Board (SERB): The SERB is the Department of Science and Technology’s (DST) main funding body and is responsible for funding S&T start-ups, setting up incubators and funding science-related projects in central and state universities

 Need of the Bill:

• To Correct the Skewed Funding: Presently, institutions like the IITs and IISc get a bulk of research funding but State universities get very little, about 10% of the research funds.
• Fragmented R&D ecosystem characterised by limited collaboration: India lacks synergy and coordination between the government, public institutions, and private organisations.
  • This fragmentation results in duplicated efforts, inefficient use of resources, and missed opportunities for interdisciplinary research.
•  Lack of Uniformity: There has also been a lack of uniformity in the funding of scientific research.

India’s Status of Spending on Research and Development vis-i-vis World:

Country	Gross Expenditure on R&D (% of GDP)
India	0.7%
United States (US)	2.83%
China	2.14%
Israel	4.9%

 Need for Research and Development:

• Driving Productivity and Economic Growth: By investing in R&D, countries can develop new technologies and improve existing processes, leading to enhanced resource efficiency and overall economic growth.
• Promoting Low-Cost Indigenous Solutions: It allows for the creation of tailored solutions that are cost-effective and easily accessible to the Indian population. For Example: Development of affordable solutions like the Jaipur Foot.
• Enhancing Learning Outcomes: A strong research culture in higher education institutions contributes to an enhanced teaching and learning experience.
• Reducing Dependency on Imports: Investing in R&D helps reduce dependence on imported high-end technologies, thereby lowering the import bill and decreasing the fiscal deficit.
  • By developing indigenous technologies, countries can achieve self-sufficiency and promote domestic industries
• Combating Climate Change: R&D plays a vital role in creating solutions such as low-cost solar panels, electric vehicles (EVs), and lithium batteries, which help reduce greenhouse gas emissions and combat climate change.

Challenges Faced by the R&D Sector:

• Low investment in R&D: The funding in R&D is less than 1% of the GDP. Further there are no extra provisions for R&D in the sunrise sectors.
  • The corporate sector accounts for about two-thirds of gross domestic expenditure on R&D (GERD) in leading economies, its share in India is just 37%. 
• Insufficient Skilled Workforce: Inadequate number of researchers in India compared to China (253 researchers per million inhabitants in India vs. 1,225 in China)
• Ongoing Challenges in Education System: Only 2.7% Colleges run Ph.D. programmes and 35.04% Colleges run Post Graduate Level programmes.
• Excessive Bureaucracy in Public Institutions: In India, education is highly centralised, resulting in limited autonomy for most institutions. Excessive government interference hampers scientific progress and creates disincentives in an already struggling environment.
• Socio-Cultural Challenges in R&D: Sociocultural barriers, especially for women, restrict participation in R&D activities. E.g. The share of female researchers in India was only 18.7% in 2018.
• Capacity constraints in the Indian Patent Office: As of March 2022, the Indian Patent Office faced a significant shortage of patent examiners and controllers.
  • With only 860 personnel in these roles, it pales in comparison to China’s 13,704 and the US’s 8,132 examiners and controllers.

Initiatives Taken by Government to Promote R& D: VAJRA Faculty Scheme: The Department of Science and Technology has launched the Visiting Advanced Joint Research (VAJRA) Faculty Scheme. Aim: To bring overseas scientists and academicians including Non-resident Indians (NRI) and Overseas Citizen of India (OCI) to India. IMPacting Research, Innovation and Technology (IMPRINT): Launched in 2015 as a collaboration between IITs and IISc. Aim: To focus on providing solutions to engineering challenges in 10 selected technology domains. Atal Tinkering Labs: Initiative by Niti Aayog’s Atal Innovation Mission. Aim: To foster creativity, curiosity, and skills such as design mindset and computational thinking in young minds. IPR Laws: India is a signatory to the WTO Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement.

 Way Forward: 

• Boost R&D Funding: It is crucial for India to increase its R&D investments to a minimum of 2% of GDP by 2030 for promoting greater private sector participation and investment in research and development.
• Utilising NRF Commitment: Utilise the committed amount of Rs 50,000 crore to address the deficits in grants provided to autonomous universities and institutions by agencies like CSIR and DST.
• Improving Information Sharing: Create a centralised virtual platform to consolidate information on projects granted with public funding, facilitating better information sharing among stakeholders.
• Enhancing Research Capacity: Facilitate training opportunities for Indian students and scientists at the doctoral and postdoctoral levels by providing better remuneration and incentives.
• Ensuring IPR Compliance: Ensure proper adherence to the National Intellectual Property Rights (IPR) policy of 2016 to build investor confidence and attract more investment in R&D.
• Promoting Government-Industry-Academia Partnership: Encourage partnerships between the government, industry, and academia to support the R&D ecosystem in India.

Additional Information: About National Research Foundation: The creation of NRF was envisaged in the National Education Policy 2020. Estimated Budgetary Outlay: ₹50,000 crore  Scientific research projects under the NRF would be funded by the DST and industry on a 50:50 basis. Time Period: 2023 – 2028. Governance Structure: The NRF’s functioning will be governed by an Executive Council chaired by the Principal Scientific Adviser to the Government of India. Administrative Department: The NRF would be administratively housed in the Department of Science and Technology (DST). Governing Board: It would have a 16-member governing board with two members from DST, five from industry, one from humanities and six experts who would be selected depending on the nature of the project being evaluated. The Prime Minister will be the ex-officio president of the Governing board and the Minister of Science and Technology and the Minister of Education will be the ex-officio vice presidents.  The NRF’s functioning will be governed by an executive council chaired by the Principal Scientific Advisor to the Government of India. Functions: To forge collaborations among the industry, academia, and government departments and research institutions To create an interface mechanism for participation and contribution of industries and State governments in addition to the scientific and line ministries. To focus on creating a policy framework and putting in place regulatory processes that can encourage collaboration and increased spending by the industry on R&D.