India to lift R&D spending to 2 pc of GDP, Private firms should leverage RDIF: Govt official

New Delhi, July 7 (IANS) Secretary, Technology Development Board (TDB) Rajesh Kumar Pathak on Tuesday said central government plans to boost research and development spending to about 2 per cent of GDP and invited private sector to tap Rs 1 lakh crore Research, Development & Innovation Fund (RDIF) that can underwrite up to half of project costs.

“The objective of the RDIF is to encourage the private sector to scale-up R&D spending, currently at around 0.65 per cent of GDP. The role of the private sector is most important in this,” Pathak said while addressing an industry outreach program organised by FICCI.

Through RDIF, industry can receive 50 per cent funding of the total R&D cost and avail this facility to acquire technology from abroad as well, he added.

“The government has allocated Rs 1 lakh crore fund, but it can become much more by reinvesting the fund in research and development,” he noted.

Pathak said that the fund aims to support the industry to absorb initial risks involved in R&D and innovation by providing the funds without any collaterals for a period of 10-15 years.

He emphasised that the fund supports critical cutting-edge research and development rather than routine R&D and is primarily focused on supporting sunrise sectors including Energy security and transition, and climate action.

Further, it supports ‘deep technology’ including quantum computing, robotics and space; AI and its application in agriculture, health and education; biotechnology, biomanufacturing, synthetic biology, pharmaceuticals and medical devices; digital economy, including digital agriculture.

“RDIF is a clear signal that India is no longer just a consumer of technology, but it is ready to become a creator of technology,” said Puneet Dalmia, Vice President, FICCI and Chair, R&D and Innovation Committee and MD & CEO, Dalmia Bharat Group.

“AI, semiconductors, quantum technologies, biotechnology, green hydrogen, defence, and deep tech are not just sectors of the future. They are the foundation of India’s future competitiveness,” he added.

—IANS

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