India’s cabinet, chaired by Prime Minister Narendra Modi, earlier this month approved a new Research Development and Innovation (RDI) Scheme with funds set aside for this purpose of approximately US$12 billion.
“Aimed at enhancing private sector participation in cutting-edge research, the scheme will offer long-term, low- or nil-interest loans to support transformative projects, especially in sunrise and strategic sectors.
“Key goals include scaling up private R&D, funding high-TRL (Technology Readiness Levels) innovations, supporting the acquisition of critical technologies, and establishing a Deep-Tech Fund of Fund,” the official statement said.
India’s newly established overarching science funding agency, the Anusandhan National Research Foundation (ANRF), will oversee the scheme, with the Department of Science and Technology (DST) serving as the principal agency designated by the government to oversee, implement, and monitor the project.
A two-tier funding model envisages a Special Purpose Fund under ANRF channelling resources to second-level fund managers, which will disburse concessional financing.
“The RDI Scheme is a welcome move to boost private sector participation in R&D, especially in a country like India where most research funding still comes from the public sector. Coupled with ANRF’s efforts to reduce red tape, this could improve the research ecosystem,” said Achal Agrawal, founder of India Research Watch, an initiative dedicated to eliminating malpractice in Indian research, told University World News.
“However, transparency is key. In the past, funding has been marred by favouritism and manipulated metrics. Strict oversight and ethical screening are essential. Prioritising sectors like deep tech, quantum computing, and semiconductors makes sense, but success will depend on how well the scheme is implemented,” he added.
Focus on commercial research
Union Minister of State JitendraSingh, during an event in Delhi in March, announced: “India’s R&D spending has more than doubled in the last decade.”
A closer look reveals that a large portion of the science budget is allocated to interest-free loans for private sector innovation, leaving academic researchers underfunded and unsupported, said a researcher.
Nonetheless, it may lead to collaborative funding with universities and institutions. “We are seeing a very significant growth in industry collaborations, and we are seeing very high growth rates in terms of funding,” Professor Rangan Banerjee, director of the Indian Institute of Technology, Delhi, told University World News recently. But he noted public funding is still significantly higher than industry funding.
Banerjee pointed to more government-industry-university research models for IITs in future. “Industry is increasingly relying on technology development and research; there is a very clear trend in that, so the ecosystem – it still has a long way to go, but it is growing.”
NV Varghese, a distinguished visiting professor at the Indian Institute of Technology, Bombay, and former vice-chancellor of the National Institute of Educational Planning and Administration (NIEPA) in New Delhi, said the funding allocation showed a renewed policy interest in research.
“The real test lies in how effectively the RDI scheme is implemented,” Varghese told University World News.
“So far, the focus seems to be on science and technology, with social sciences and humanities on the margins. A key concern is whether it will genuinely strengthen research in public universities or simply benefit elite institutions.
“India has over 1,300 universities, but fewer than half conduct serious research. Without addressing gaps in funding, infrastructure, and faculty training, we risk deepening existing inequalities. What’s needed is not just money, but a culture of inquiry and institutional capacity across the system,” he said.
Stipend delays causing distress
The government’s funding of industrial research comes amid a deepening crisis in academic research, with many early-career scholars citing delayed funding and institutional apathy, particularly in core disciplines, as major sources of disillusionment.
The ambitions of some of the brightest scholars are being hindered by bureaucratic delays in funding and mismanagement, experts have said, with the situation significantly deteriorating in the past two years.
Central to this issue is the INSPIRE (Innovation in Science Pursuit for Inspired Research) Fellowship, a key initiative launched in 2008 by the government’s Department of Science and Technology (DST) aimed at encouraging students to pursue PhDs in basic and applied sciences.
While the fellowship is designed to provide monthly stipends ranging from around INR37,000 to 42,000 (US$430 to US$488), ongoing delays in disbursing the funds pushed many researchers into financial and emotional distress.
Throughout the country, young researchers – some of whom have ranked in the top 1% in their Standard 12 (school leaving) examinations or excelled in competitive exams like the IIT-JEE for entry to the Indian Institutes of Technology (IITs) – are voicing concerns about stipends delayed by as long as 13 months.
Researchers from esteemed institutions such as IITs and Indian Institutes of Science Education and Research (IISERs) expressed frustration over excessive delays. Many of them report that emails to DST go unanswered, and responses from helplines are often indifferent or dismissive.
Sayali Atkare, an INSPIRE senior researcher at the Savitribai Phule Pune University, said in a LinkedIn post: “For over a year now, many of us who are pursuing PhDs under DST-funded fellowships have not received our stipends. That’s 13+ (in some cases 18+) months without financial support, despite contributing to the scientific and academic progress of this nation.”
Additionally, the funding imbalance fosters inequity within the research community, according to many researchers interviewed. Students from privileged backgrounds are better able to withstand delays through family support or personal savings.
In contrast, scholars from lower-income households face the difficult choice between continuing their research and meeting basic living expenses – a dilemma no aspiring scientist should have to confront, added the researchers.
Many academics have expressed that the consequences of these funding delays reach far beyond individual struggles. At several central universities, researchers have reported being unable to attend conferences due to delayed fellowships.
Agrawal said such funding delays were deeply concerning. “INSPIRE is one of the most prestigious fellowships awarded to select students, and if they have to struggle even for basic financial support, it sends a discouraging message to future PhD aspirants. It could very well make students think twice before pursuing a PhD in India.”
He called for the issue to be quickly resolved and hoped “more effective systems are put in place to ensure timely disbursal of fellowships."
Time lags are common
The delays are not new; many scholars have come to anticipate a three-to-four-month lag in receiving payments, which they reluctantly incorporate into their annual planning. However, the situation has become worse.
The issues arise from changes in fund management at the Department of Science and Technology (DST), including the introduction of zero-balance accounts, which do not require a minimum balance, and revised accounting systems.
Although these reforms aim to enhance transparency, they have resulted in confusion and disorganisation, making it difficult for people to understand procedures or carry out tasks effectively.
Scholars, who depend on these fellowships for their living expenses, research materials, and academic tools, say they are facing the consequnces.
A researcher currently pursuing a PhD from India’s Defence Research and Development Organisation’s Defence Research & Development Establishment (DRDE), which specialises in detection of and protection against hazardous chemical and biological agents, outlined her frustration with the financial instability.
“Since it’s a defence organisation, we must follow strict protocols. Everything was fine until DST asked us to open a new account in the Bank of Maharashtra. It took over a year for DRDE to open it, that too by bypassing usual procedures,” she said, requesting anonymity.
“During my third year, we faced extreme financial stress – just when we needed to focus on our research.”
Although her fellowship for the next year was approved in September 2024, no funds have been released. “DST said they lacked funds. It’s been one and a half years without fellowship (money), despite multiple emails and phone calls,” she added.
In response to mounting pressure and widespread social media campaigns where scholars have tagged Prime Minister Narendra Modi and Minister of State for Science and Technology Jitendra Singh – there has been no official communication so far.
When contacted on the issue, DST Secretary Professor Abhay Karandikar did not respond.
Earlier in May, Abhay Karandikar told The Hindu newspaper that starting from June 2025, all pending dues would be cleared, and scholars would begin receiving their funds on time.