NEW DELHI, Feb 3: The recent allocation of Rs 20,000 crore in the Union Budget 2025-26 aims to enhance research efforts, expand AI and geospatial initiatives, and further promote the Atal Tinkering Labs. Despite these significant advancements, industry leaders suggest that more is needed to boost the nation’s research and development (R&D) landscape.
Union Finance Minister Nirmala Sitharaman announced a Rs 20,000 crore budget for the Department of Science and Technology to foster innovation led by the private sector. Additionally, she mentioned the establishment of 50,000 Atal Tinkering Labs over the next five years to inspire scientific thinking among youth.
Shirshendu Mukherjee, Managing Director of the Wadhwani Innovation Network, called the 2025 Union Budget a major step toward enhancing India’s R&D framework. He stated, “The Rs 20,000 crore allocation for both private and public sector research, along with the focus on AI and geospatial projects, highlights the government’s commitment to innovation-driven growth. By promoting creativity from an early age and advancing deep tech research, these investments will accelerate AI advancements and digital transformation, positioning India as a global frontrunner in emerging technologies,” he shared with PTI.
He emphasized that ongoing collaboration between industry and academia, along with strategies for commercializing research and securing scalable funding, are essential to sustain this momentum.
“With continued policy support, India is on track to become a hub for cutting-edge innovation, contributing to Viksit Bharat 2047,” he added.
Ajay Kela, President & CEO of the Wadhwani Foundation, noted that establishing five National Centres of Excellence for Skilling and investing Rs 500 crore in AI-centric education will significantly improve workforce readiness for the future.
Furthermore, industry experts believe that the Rs 20,000 crore investment in small modular reactor R&D and incentives for increasing capacity will present opportunities for energy-intensive sectors. Dushyant Chachra, CFO of renewable and green energy firm SAEL, remarked that while this allocation is a valuable first step, a more comprehensive and sustained strategy will be necessary for faster progress in this area.
“I believe the government should consider further measures such as additional funding for R&D, reducing regulatory hurdles, and offering substantial tax incentives to encourage private partnerships in the near future,” he proposed.
Vishwanathan Iyer, Professor and Director of Accreditation at the Great Lakes Institute of Management, Chennai, emphasized the need for greater tax incentives for private sector research. “Encouraging corporate R&D spending through weighted deductions and fostering public-private partnerships can foster innovation. Additionally, a dedicated fund for high-risk, high-reward research—especially in deep tech and defense—can ensure India remains at the forefront of disruptive innovations,” he stated.
Bharat Kale, Emeritus Scientist and Director of Material Science at the Centre of Excellence at MIT World Peace University, pointed out that India should enhance its R&D expenditure. “While the R&D budget has seen an increase this year, it still lags behind countries like China, Japan, and Korea. Moreover, Indian industry invests very little in R&D, and its participation must be improved,” Kale noted.
“The Department of Science and Technology (DST) has received a substantial budget increase, with allocations rising to Rs 23,290 crore for 2025-26 from Rs 2,819 crore the previous year. This increase will facilitate a diverse range of scientific projects, including quantum computing, supercomputing, and geospatial infrastructure,” said Sourabh Kulshrestha, Dean for Research & Development at Shoolini University. (PTI)
