India needs to raise R&D spending to 2 pc of GDP by 2035 to boost manufacturing: Report
GS3Economy · S&T · Environment · Security· Industry, investment & MSMEs· Prelims + Mains·
Why in news
Careedge Ratings released a report highlighting that India's low R&D spending (0.6-0.7% of GDP) is hindering manufacturing growth and recommended a target of 2% by 2035.
Background
India's manufacturing share of GDP declined from 16% in 2015 to 13% in 2024. The report compares India's R&D spending (0.6-0.7%) against the US (3%), China (2.5%), and South Korea (up to 5%).
Facts for Prelims
- FactIndia's current R&D spending is 0.6-0.7% of GDP.
- FactManufacturing share of India's GDP was 13% in 2024.
- FactCareedge Ratings recommended an R&D spending target of 2% of GDP by 2035.
- FactSouth Korea's R&D spending is cited as up to 5% of GDP.
For Mains
Q. Analyze how increasing R&D investment and strengthening industry-academia collaboration can transition India from a manufacturing hub to a value-added production powerhouse.
Dimensions to cover in your answer
- Innovation gap: Low R&D spending (0.6-0.7%) limits the transition to high-value-added manufacturing production.
- Commercialization bottleneck: Weak research-to-commercialization pipelines hinder the translation of academic research into industrial output.
- Human capital deficit: Need for strengthened STEM education to support an innovation-led industrial ecosystem.
Keywords: R&D investment · Value-added production · Industry-academia collaboration · Innovation ecosystem · Manufacturing competitiveness
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