Business and Industries

Increase the public spending on R&D and incentivize R&D investments by the industry to increase the competitiveness of the manufacturing sector

Adequate Progress

In the Union Budget 2017-18, the key ministries and departments(Ministry of Science and Technology, Department of Atomic Energy, etc), involved in research and development have received a total of 34,700 crores, an increase of 11 % from the previous year. The increment in R&D budget is a welcome step, however total R&D spending of India amounts to 0.85% of its GDP, while countries like Israel spend more than 4% of their GDP on R&D.

BJP Government proposed to repeal R&D cess act, 1986 in Budget 2017, removing the 5% R&D cess on Industries.

BJP government announced  National Manufacturing Competitiveness Programme (NMCP) in 2014. With an allocation of around 3,300 crores in the  2014-15 & 3,000 crores in the year 2016, Government has implemented various schemes like Lean Manufacturing Competitiveness Scheme, Promotion of ICT in Manufacturing etc.

Though the funding has seen an increment, it is not sufficient keeping in view the inflation rate. Moreover, percentage budget of GDP has been constant  at 0.85%. Hence, it has been given status “Adequate Progress”.

Facebook Comments