Gerd As Percentage Share Of Gdp Remained At 0.7% In Last Few Years

GERD in terms of percentage of GDP was at 0.7 0.7% in the last couple of years

By Kumar Vikram New Delhi, Aug 16 : Gross expenditure for Research and Development (GERD) as a percentage of GDP has been at 0.7 percent in India over the past few years.

 Gerd As Percentage Share Of Gdp Remained At 0.7% In Last Few Years-TeluguStop.com

This number is lower it is compared to GERD of several other countries such as Israel, South Korea, the US, Japan and Germany and many more.

This is significant since the Prime Minister Narendra Modi on his Independence Day speech called for pushing into research and innovation.

When addressing the nation, Modi added ‘Jai Anusandhan’ (research, innovation) to the ‘Jai Jawan Jai Kisan and Jai Vigyan’ slogan used by politicians in the past.

A recent response from the Ministry of Science and Technology in the Parliament indicated that GERD as a percentage of GDP has maintained a level of 0.7 percent over the past few years due to the lack of private sector investments.

The equivalent GERD figures to GDP for a few developed and developing nations include: Israel (5.4 percent), South Korea (4.8 percent) and the US (3.5 percent), Japan (3.3 per cent), Germany (3.1 per cent), France (2.4 per cent), China (2.4 per cent) The UK (1.7 percent), Canada (1.7 per cent), Brazil (1.2 per cent), Russia (1.1 per cent) and South Africa (0.6 per cent).

According to the government’s response, in absolute terms India’s GERD has been steadily increasing over time and has tripled in the last 10 years.

“As as per the most recent available R&D figures, the amount of research and development expenditure in the country in terms of GERD in the period 2015-16 to 2017-18 was 95,452.44 crore in the year 2015-16, in the range of Rs 103,099.26 crore, and 113,825.03 crore respectively.The figure is of the amount of the sum of 123,847.71 crore for the year 2018-19,” the government said.

The government has implemented a number of steps to boost R&D spending and to attract private investment in R&D.

Some of the key efforts include the successive increase in plan allocations for scientific departments, incentivising investment by private sector to increase their share in GERD, improving the ease of doing business in the Science, Technology and Innovation (STI) activities, introducing flexible tools for public procurement, creating avenues for collaborative STI funding through portfolio-based funding mechanisms such as public-private-partnerships and other innovative hybrid funding mechanisms.

In addition the government has also allowed the private sector to undertake R&D investments under the provisions of corporate social responsibility (CSR).

Corporates are able to invest in technology-based business incubators or contribute in research projects carried out by national research institutes and institutions.laboratories as component of their CSR.

There are also incentives for investment like tax incentives based on location that allow 100 percent deduction of the profits derived by establishing and operating a business in the states of Northeastern States, according to the government’s written response.

kvm/arm

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