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12 Feb 2026·Source: The Hindu
4 min
Science & TechnologyEconomyNEWS

Budget Boosts Science Missions, Core Funding Gaps Persist in India

Union Budget emphasizes science for growth, but researchers note gaps in funding.

Budget Boosts Science Missions, Core Funding Gaps Persist in India

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The Union Budget 2026-27 highlights science as a growth instrument, allocating significant funds to biopharma, semiconductors, carbon capture, and research-linked industrial finance. However, experts point out that the actual delivery of reliable funds, autonomy for research institutions, and transparency in finance vehicles remains a challenge. The allocation for the Department of Biotechnology was revised down in 2023-24, and the Department of Science and Technology also experienced cuts.

A new program called ‘Biopharma SHAKTI’ received the biggest allocation this year, aiming to address non-communicable diseases and scale indigenous development and manufacturing of biologics and biosimilars. Concerns remain about whether the outlay will broaden the base or only thicken the top layer of applied programs. The budget also embraces big-ticket infrastructure linked to ‘missions,’ with sustained support to the Department of Scientific and Industrial Research and the CSIR.

However, there are concerns that the budget privileges applied sectors while underfunding basic research, with gross expenditure on R&D hovering around 0.64-0.7% of GDP for years.

Key Facts

1.

The Union Budget 2026-27 emphasizes science as a growth instrument.

2.

The budget allocates significant funds to biopharma, semiconductors, carbon capture, and research-linked industrial finance.

3.

Experts highlight challenges in delivering reliable funds, autonomy for research institutions, and transparency in finance vehicles.

4.

The allocation for the Department of Biotechnology was revised down in 2023-24.

5.

The Department of Science and Technology also experienced cuts in 2023-24.

6.

A new programme called ‘Biopharma SHAKTI’ has been allocated ₹10,000 crore over five years.

UPSC Exam Angles

1.

GS Paper 3: Science and Technology - Developments and their applications and effects in everyday life

2.

GS Paper 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation

3.

Potential question types: Statement-based, analytical questions on funding and research priorities

Visual Insights

Key Budget Allocations for Science & Technology

Highlights key budgetary allocations and R&D spending as a percentage of GDP, as mentioned in the article.

R&D Spending as % of GDP
0.64-0.7%

India's R&D spending has remained stagnant, hindering innovation and global competitiveness.

More Information

Background

The emphasis on science and technology in India has historical roots, particularly after independence. The Scientific Policy Resolution of 1958 laid the foundation for government support of research and development. This resolution aimed to foster a scientific temper and promote scientific research in all aspects of national life. Over the decades, various initiatives and institutions have been established to boost scientific capabilities. The establishment of the Department of Science and Technology (DST) in 1971 was a significant step. DST was created to organize, coordinate, and promote science and technology activities in the country. Funding for research has evolved through different five-year plans, reflecting changing priorities and economic conditions. The funding landscape for science and technology is also influenced by broader economic policies and fiscal constraints. The Finance Commission recommendations play a role in determining the allocation of resources to different sectors, including science and technology. The goal has been to increase the gross expenditure on R&D as a percentage of GDP, though progress has been slow.

Latest Developments

Recent government initiatives have focused on specific sectors like biopharma and semiconductors. The Semiconductor Mission aims to establish India as a global hub for semiconductor design and manufacturing. This involves attracting investments, providing incentives, and developing the necessary infrastructure. There is ongoing debate about the balance between applied and basic research. Some argue that applied research should receive more funding to address immediate societal needs, while others emphasize the importance of basic research for long-term innovation. Institutions like CSIR (Council of Scientific and Industrial Research) play a crucial role in bridging the gap between research and industry. The future outlook involves increasing R&D spending and fostering greater collaboration between academia and industry. The government aims to create a more conducive ecosystem for innovation and entrepreneurship. However, challenges remain in ensuring reliable funding, promoting autonomy for research institutions, and improving transparency in financial mechanisms.

Frequently Asked Questions

1. What are the key areas of science that received significant funding in the Union Budget 2026-27, and why is this important for the UPSC exam?

The Union Budget 2026-27 allocated significant funds to biopharma, semiconductors, carbon capture, and research-linked industrial finance. This is important for UPSC as it reflects the government's priorities in science and technology, which are key areas for economic growth and national development. Expect questions on these sectors in both Prelims and Mains.

2. What is 'Biopharma SHAKTI' and what is its significance?

‘Biopharma SHAKTI’ is a new program that received a significant allocation in the Union Budget. It aims to address non-communicable diseases and scale indigenous development and manufacturing of biologics and biosimilars. Its significance lies in its potential to strengthen India's biopharmaceutical sector and reduce dependence on imports.

3. What are the challenges in translating budget allocations for science into tangible outcomes, according to experts?

Experts highlight challenges in the delivery of reliable funds, autonomy for research institutions, and transparency in finance vehicles. These challenges can hinder the effective utilization of allocated funds and impede scientific progress.

4. What is the recent trend in budget allocation for the Department of Biotechnology and the Department of Science and Technology?

The allocation for the Department of Biotechnology was revised down in 2023-24, and the Department of Science and Technology also experienced cuts in 2023-24. This indicates a potential shift in funding priorities or resource constraints.

5. What are the potential pros and cons of the government's increased focus on science as a growth instrument, particularly concerning basic vs. applied research?

Pros include potential economic growth, technological advancements, and improved quality of life. Cons include the risk of neglecting basic research in favor of applied research, which could stifle long-term innovation and discovery. A balanced approach is needed.

6. Why is the Union Budget's emphasis on science in the news recently?

The Union Budget's emphasis on science is in the news due to the significant allocations for specific sectors like biopharma and semiconductors, coupled with concerns about the actual delivery of funds and autonomy for research institutions. This has sparked debate among scientists and policymakers.

Practice Questions (MCQs)

1. Consider the following statements regarding the Scientific Policy Resolution of 1958: 1. It emphasized the importance of cultivating science and scientific research in all aspects of national life. 2. It led to the immediate establishment of the Department of Science and Technology (DST). 3. It advocated for minimal government intervention in scientific research. Which of the statements given above is/are correct?

  • A.1 only
  • B.2 and 3 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: A

Statement 1 is CORRECT: The Scientific Policy Resolution of 1958 indeed emphasized the importance of science and scientific research in all aspects of national life. Statement 2 is INCORRECT: The DST was established in 1971, not immediately after the resolution. Statement 3 is INCORRECT: The resolution advocated for government support and promotion of scientific research, not minimal intervention. It aimed to foster a scientific temper and promote scientific research in all aspects of national life.

2. With reference to the Union Budget 2026-27, consider the following statements: 1. The budget allocated significant funds to the 'Biopharma SHAKTI' program, focusing on non-communicable diseases. 2. The Department of Biotechnology's allocation was increased in the revised estimates for 2023-24. 3. The budget prioritizes basic research over applied sectors. Which of the statements given above is/are correct?

  • A.1 only
  • B.2 and 3 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: A

Statement 1 is CORRECT: The Union Budget 2026-27 allocated significant funds to the ‘Biopharma SHAKTI’ program, aiming to address non-communicable diseases. Statement 2 is INCORRECT: The allocation for the Department of Biotechnology was revised DOWN in 2023-24. Statement 3 is INCORRECT: The budget privileges applied sectors while underfunding basic research.

3. Which of the following statements accurately reflects the current status of Gross Expenditure on R&D (GERD) in India?

  • A.GERD has consistently remained above 1% of GDP for the last decade.
  • B.GERD has been steadily increasing and is currently at 1.5% of GDP.
  • C.GERD has hovered around 0.64-0.7% of GDP for years.
  • D.GERD has seen a sharp decline in recent years due to budget cuts.
Show Answer

Answer: C

Option C is the correct answer. The news summary explicitly mentions that the gross expenditure on R&D has hovered around 0.64-0.7% of GDP for years. The other options are incorrect as they present inaccurate information about the GERD in India.

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