BUDGET LIVE: In the Union Budget 2024-25, unveiled by Finance Minister Nirmala Sitharaman on July 23, the government has announced significant investments aimed at boosting research and innovation in India. A major highlight of the budget is the establishment of the 'Anusandhan National Research Fund,' which will provide substantial support for basic research and prototype development across universities, colleges, research institutions, and R&D labs.
To foster private sector-led research and commercial-scale innovation, the government is also setting up a new financing mechanism with a massive Rs 1 lakh crore pool. Additionally, a venture capital fund of Rs 1,000 crore will be introduced to enhance the space economy, with a target of expanding it fivefold over the next decade.
These measures are part of a broader strategy to elevate India’s research and development (R&D) capabilities. The establishment of the Powering Innovation, Research & Development (R&D) Anusandhan National Research Fund is expected to drive substantial progress in R&D, benefiting both public and private sectors.
This move aligns with global trends where increased R&D investments are seen as crucial for long-term benefits. A 2021 report by the McKinsey Global Institute highlighted that a boost in R&D spending could result in up to $3 trillion in annual cost savings for the global healthcare system by 2040.
Despite being one of the top producers of pharmaceuticals by volume, India has room for growth in innovative drug discovery. The increased focus on R&D is anticipated to position India as a global leader in this field, further strengthening its role in the global healthcare landscape.
This budgetary commitment marks a significant step towards enhancing India's research infrastructure and innovation capacity, aiming to place the country at the forefront of global advancements in science and technology.
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