18 Mar 2026·Source: The Hindu

7 min

Ritu Singh|South India

Science & TechnologyEconomyEnvironment & EcologyNEWS

Tamil Nadu Urged to Boost Basic Science Funding for Green Technology Innovation

Tamil Nadu lags in R&D spending, hindering its potential for green technology and economic growth.

UPSC-PrelimsUPSC-Mains●

Quick Revision

Tamil Nadu aims to achieve a trillion-dollar economy by 2030.

The State Innovation Policy emphasizes increased investment in basic sciences and R&D.

Tamil Nadu's R&D expenditure is 0.26% of its GSDP (2021-22).

The national average for R&D expenditure is 0.64% of GDP.

State government contributes 20% to R&D expenditure in Tamil Nadu.

Central government and private sector each contribute 40% to R&D in Tamil Nadu.

Developed nations typically spend 2-3% of their GDP on R&D.

The state's S&T budget allocation is proposed to increase from Rs 200 crore (2023-24) to Rs 1,000 crore by 2026-27.

Key Dates

20302021-2220222023-242026-27

Key Numbers

1 trillion0.26%0.64%20%40%2-3%1,000 crore500 crore200 crore1%

Visual Insights

तमिलनाडु के हरित प्रौद्योगिकी नवाचार के प्रमुख आंकड़े

यह डैशबोर्ड तमिलनाडु के हरित प्रौद्योगिकी नवाचार और आर्थिक लक्ष्यों से संबंधित प्रमुख आंकड़ों को दर्शाता है, जिसमें राज्य का वर्तमान R&D व्यय और भविष्य की पहल शामिल हैं।

तमिलनाडु का R&D व्यय: 0.26%
तमिलनाडु सेमीकंडक्टर मिशन – 2030: ₹500 करोड़
तमिलनाडु का आर्थिक लक्ष्य: ट्रिलियन-डॉलर अर्थव्यवस्था

Mains & Interview Focus

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The push by Tamil Nadu to significantly increase basic science funding for green technology innovation is a commendable strategic imperative. The state's ambition to achieve a trillion-dollar economy by 2030 necessitates a robust innovation ecosystem, which is currently hampered by an R&D expenditure of merely 0.26% of its GSDP, starkly below the national average of 0.64%. This underinvestment in fundamental research is a critical bottleneck for long-term sustainable growth and technological leadership.

A deeper look reveals that the state government's contribution to R&D is only 20%, with central government and private sector each contributing 40%. This imbalance underscores the need for greater state ownership and financial commitment. While initiatives like the Tamil Nadu Green Climate Fund (proposed Rs 1,000 crore corpus) and the Tamil Nadu Climate Change Mission (Rs 500 crore) are positive, they address applied aspects. True innovation in areas like renewable energy, climate change adaptation, and circular economy demands sustained investment in basic sciences, which often lack immediate commercial returns but yield foundational breakthroughs.

The proposed increase in state S&T budget allocation from Rs 200 crore (2023-24) to Rs 1,000 crore by 2026-27 is a welcome step, but achieving the target of 1% of GSDP for R&D will require even more aggressive scaling. States like Karnataka and Telangana, with higher R&D spending relative to their GSDP, demonstrate the potential for fostering innovation clusters. Tamil Nadu must learn from these models and actively promote public-private partnerships, strengthen university-industry linkages, and address the critical gaps in venture capital and incubation centres.

Furthermore, the state's focus on intellectual property rights (IPR) protection and skilled manpower development is paramount. Without a strong IPR regime, research outcomes may not translate into commercial value, deterring private investment. Similarly, a shortage of skilled personnel, particularly in advanced scientific fields, will undermine any funding increase. The Tamil Nadu Research and Development Policy 2022 must provide clear mechanisms to bridge these gaps, ensuring that increased funding translates into tangible innovations and economic dividends.

Exam Angles

GS Paper 3: Science and Technology - Indigenization of technology and developing new technology, achievements of Indians in science & technology, awareness in the fields of IT, Space, Computers, robotics, nano-technology, bio-technology and issues relating to intellectual property rights.

GS Paper 3: Indian Economy - Mobilization of resources, growth, development and employment.

GS Paper 2: Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation.

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Summary

Tamil Nadu wants to become a very rich state by 2030, but it needs to spend much more money on basic science research. Currently, it spends very little compared to other states and the national average. By investing more in science, the state hopes to develop new green technologies, like better solar power or ways to fight climate change, which will help its economy grow and protect the environment.

Tamil Nadu's State Innovation Policy highlights the critical need for increased investment in basic sciences and Research and Development (R&D) to foster green technology innovation and achieve its trillion-dollar economy goal. The state's R&D expenditure, noted at 0.26% of its Gross State Domestic Product (GSDP), is lower than the national average and other major states. Experts underscore that robust funding for fundamental research is essential for developing innovative solutions in areas such as renewable energy, climate change adaptation, and sustainable development, positioning Tamil Nadu as a leader in green technology.

Nationally, India's Gross Expenditure on Research and Development (GERD) has been declining since 2009-10, estimated at 0.64% of GDP in 2020-21. This is significantly lower than developed countries like Germany, USA, China, and Brazil. The R&D sector in India faces challenges including inadequate investment by the private sector and state governments, a low number of researchers (260 per million in 2015 compared to USA's 4,452), talent migration, and a low share in patents and high-quality scientific publications. The Science, Technology, and Innovation Policy, 2013, aimed to increase GERD to 2% of GDP, a goal reiterated by the draft Science, Technology, and Innovation Policy, 2020, which targets doubling domestic GERD every five years.

For the financial year 2024-25, the Ministry of Science and Technology has been allocated Rs 16,628 crore, marking a 31% increase over the revised estimates for 2023-24. This includes Rs 8,029 crore for the Department of Science and Technology (DST), Rs 6,323 crore for the Department of Scientific and Industrial Research (DSIR), and Rs 2,276 crore for the Department of Biotechnology (DBT). Notably, the allocation for the National Research Foundation (NRF) under DST saw a significant reduction from Rs 2,000 crore at the budget stage in 2023-24 to Rs 259 crore at the revised estimate stage.

Looking ahead, the 2026-27 budget signals a strategic reorientation, with the State acting as a "monetary shareholder" and catalyst for high-risk innovation. The ₹1 lakh crore Research, Development, and Innovation (RDI) scheme is fully operationalized, with ₹20,000 crore earmarked within the DST budget for 2026-27 to provide long-term, low-interest funding for private-sector-led innovation. The Anusandhan National Research Foundation (ANRF) aims to expand quality research. Significant investments are also directed towards planetary sciences and astronomy, including the establishment or upgrading of four telescope facilities: the National Large Solar Telescope (NLST), National Large Optical-Infrared Telescope (NLOIT), Himalayan Chandra Telescope (HCT), and COSMOS 2 Planetarium in Mysuru. Conversely, the National Supercomputing Mission (NSM) funding was reduced to a nominal ₹0.01 crore from ₹535 crore (RE previous year), while the National Quantum Mission (NQM) saw a 50% increase to ₹900 crore.

In biotechnology, the Biopharma Strategy for Healthcare Advancement through Knowledge, Technology and Innovation (SHAKTI) mission aims to transform India into a global biopharmaceutical manufacturing hub, establishing three new National Institutes of Pharmaceutical Education and Research (NIPERs) and upgrading seven existing ones. The Ministry of Electronics and Information Technology has launched the India Semiconductor Mission (ISM) 2.0 with a projected outlay of ₹40,000 crore for electronics manufacturing, focusing on full-stack Indian IP and domestic supply chains.

Specifically for Tamil Nadu, the state's budget for 2025-26 includes the 'Tamil Nadu Semiconductor Mission – 2030', to be implemented over five years at a cost of Rs 500 crore, encouraging semiconductor design companies and domestic start-ups. The state also plans a new city near Chennai over 2,000 acres, featuring IT parks, fin-tech trade zones, and R&D centres. These initiatives are crucial for India to enhance its innovation ecosystem, reduce technology imports, and achieve self-reliance in critical and emerging technologies, directly impacting economic growth and global competitiveness, making this topic highly relevant for UPSC examinations, particularly GS Paper 3 (Science & Technology, Economy) and GS Paper 2 (Government Policies).

Background

भारत में अनुसंधान एवं विकास (R&D) पर खर्च, जिसे Gross Expenditure on Research and Development (GERD) के रूप में मापा जाता है, 2009-10 से लगातार घट रहा है, जो 2020-21 में सकल घरेलू उत्पाद (GDP) का केवल 0.64% था। यह जर्मनी, अमेरिका और चीन जैसे विकसित देशों की तुलना में काफी कम है, जहां निजी क्षेत्र का निवेश 50% से अधिक होता है। भारत में, सार्वजनिक क्षेत्र पारंपरिक रूप से R&D का प्रमुख खर्च करने वाला रहा है, लेकिन 2008-09 से इसमें भी गिरावट देखी गई है, जबकि निजी क्षेत्र का निवेश सकल घरेलू उत्पाद के लगभग 0.25% पर स्थिर रहा है। देश में विज्ञान, प्रौद्योगिकी और नवाचार को बढ़ावा देने के लिए, विज्ञान और प्रौद्योगिकी मंत्रालय के तहत तीन प्रमुख विभाग काम करते हैं: विज्ञान और प्रौद्योगिकी विभाग (DST), वैज्ञानिक और औद्योगिक अनुसंधान विभाग (DSIR), और जैव प्रौद्योगिकी विभाग (DBT)। Science, Technology, and Innovation Policy, 2013 ने GERD को सकल घरेलू उत्पाद के 2% तक बढ़ाने का एक दीर्घकालिक राष्ट्रीय लक्ष्य निर्धारित किया था। इस नीति का उद्देश्य देश में विज्ञान, प्रौद्योगिकी, अनुसंधान और नवाचार को बढ़ावा देने के लिए नीतियां बनाना और लागू करना है। R&D क्षेत्र को कम निजी और राज्य सरकार के निवेश, शोधकर्ताओं की कम संख्या, प्रतिभा पलायन, और पेटेंट तथा उच्च गुणवत्ता वाले वैज्ञानिक प्रकाशनों में कम हिस्सेदारी जैसी चुनौतियों का सामना करना पड़ता है। राज्य सरकारों का राष्ट्रीय R&D व्यय में हिस्सा 2020-21 में केवल 7% था, जिसमें कुछ प्रमुख राज्य जैसे उत्तर प्रदेश, गुजरात, पंजाब, महाराष्ट्र, तमिलनाडु, आंध्र प्रदेश, केरल और कर्नाटक मिलकर 60% से अधिक का योगदान करते हैं।

Latest Developments

हाल के वर्षों में, भारत ने R&D और नवाचार को बढ़ावा देने के लिए कई महत्वपूर्ण पहल की हैं। मसौदा Science, Technology, and Innovation Policy, 2020 का लक्ष्य हर पांच साल में घरेलू GERD को दोगुना करना और निजी क्षेत्र के योगदान को भी दोगुना करना है। सरकार ने कॉर्पोरेट सामाजिक उत्तरदायित्व (CSR) निधियों को सार्वजनिक-वित्तपोषित इनक्यूबेटरों और अनुसंधान संगठनों में अनुसंधान के लिए योगदान करने की अनुमति दी है। 2026-27 के बजट में, सरकार ने ₹1 लाख करोड़ की अनुसंधान, विकास और नवाचार (RDI) योजना को पूरी तरह से चालू किया है, जिसमें निजी क्षेत्र के नेतृत्व वाले नवाचार के लिए ₹20,000 करोड़ का दीर्घकालिक, कम ब्याज वाला वित्तपोषण शामिल है। Anusandhan National Research Foundation (ANRF) की स्थापना राज्य क्षमता निर्माण और गुणवत्तापूर्ण अनुसंधान के विस्तार के लिए की गई है। इसके अतिरिक्त, National Quantum Mission (NQM) को ₹900 करोड़ का बढ़ा हुआ वित्तपोषण मिला है, और India Semiconductor Mission (ISM) 2.0 को इलेक्ट्रॉनिक्स विनिर्माण के लिए ₹40,000 करोड़ का परिव्यय मिला है। Biopharma SHAKTI Mission का लक्ष्य भारत को बायोफार्मास्युटिकल विनिर्माण का एक वैश्विक केंद्र बनाना है। तमिलनाडु ने भी 2025-26 के बजट में 'तमिलनाडु सेमीकंडक्टर मिशन – 2030' के लिए 500 करोड़ रुपये आवंटित किए हैं, जिसका उद्देश्य राज्य में सेमीकंडक्टर डिजाइन केंद्रों को प्रोत्साहित करना है। ये पहल भारत की प्रौद्योगिकी आयात पर निर्भरता को कम करने और कृत्रिम बुद्धिमत्ता, ब्लॉकचेन और हरित प्रौद्योगिकी जैसे उभरते क्षेत्रों में स्वदेशी क्षमताओं को विकसित करने के लिए महत्वपूर्ण हैं।

Sources & Further Reading

Demand for Grants 2024-25 Analysis : Science and Technology— PRS Legislative

Impetus for science amidst a global churn— Hindustan Times(2026-03-10)

Tamil Nadu Budget Analysis 2025-26— PRS Legislative

Frequently Asked Questions

1. What is the significance of Tamil Nadu's R&D expenditure being 0.26% of GSDP, and how does it compare nationally?

Tamil Nadu's R&D expenditure of 0.26% of its GSDP is significantly lower than the national average of 0.64% of GDP. This low spending is a critical concern because robust R&D funding is essential for driving innovation, especially in green technologies, and for achieving the state's ambitious trillion-dollar economy goal by 2030. It indicates a potential bottleneck in developing new solutions for renewable energy and climate change adaptation.

Exam Tip

Remember the specific percentages: Tamil Nadu's 0.26% of GSDP vs. national 0.64% of GDP. UPSC often tests these comparative figures. Also, note the difference between GSDP (state) and GDP (national).

2. Why is Tamil Nadu's State Innovation Policy emphasizing basic science funding now, especially for green technology?

Tamil Nadu's State Innovation Policy is emphasizing basic science funding now due to two primary reasons: the state's goal to achieve a trillion-dollar economy by 2030 and the critical need for green technology innovation. Basic sciences form the foundation for breakthroughs in areas like renewable energy and sustainable development, which are crucial for both economic growth and addressing climate change challenges. Increased funding is seen as vital to position Tamil Nadu as a leader in these emerging sectors.

Exam Tip

Connect policy initiatives (State Innovation Policy) with overarching goals (trillion-dollar economy, green tech leadership). This shows a deeper understanding of policy drivers.

3. What are the key national initiatives mentioned that aim to boost R&D, and how do they address the issues highlighted by Tamil Nadu's situation?

Nationally, several initiatives aim to boost R&D. These include the draft Science, Technology, and Innovation Policy, 2020 (STIP 2020) which aims to double domestic Gross Expenditure on Research and Development (GERD) and private sector contribution every five years. Additionally, the government has allowed Corporate Social Responsibility (CSR) funds to contribute to research in public-funded incubators and research organizations. A ₹1 lakh crore Research, Development, and Innovation (RDI) scheme was also announced in the 2026-27 budget. These initiatives address issues like Tamil Nadu's low R&D spending by aiming to increase overall national GERD, encouraging private sector participation, and providing dedicated funding for research and innovation across states.

Exam Tip

Remember the names of policies (STIP 2020) and key schemes (RDI scheme) along with their primary objectives. UPSC often asks about specific government programs.

4. How does low R&D spending, like Tamil Nadu's 0.26% of GSDP, specifically hinder a state's economic growth and innovation goals?

Low R&D spending directly hinders a state's economic growth and innovation goals by:

•Stifling Innovation: It limits the capacity for fundamental research and development, which are the bedrock for new technologies and solutions, particularly in emerging fields like green technology.
•Reduced Competitiveness: A lack of innovation makes the state less competitive in attracting industries that rely on cutting-edge technology and skilled talent.
•Slower Economic Diversification: Without new research, the state may struggle to diversify its economy beyond traditional sectors, missing opportunities in high-growth areas.
•Dependency on External Technology: The state might become overly reliant on importing technology rather than developing its own, impacting self-reliance and long-term economic resilience.

Exam Tip

When asked about 'how' something impacts, think about direct and indirect consequences across different sectors (economic, technological, social). Use bullet points for clarity in Mains answers.

5. Given Tamil Nadu's R&D challenges, what strategic steps should the state government prioritize to boost funding and foster green technology innovation?

To boost R&D funding and foster green technology innovation, Tamil Nadu's government should prioritize:

•Increasing State Budgetary Allocation: Directly raising its 20% contribution to R&D expenditure to align with national goals and the State Innovation Policy's emphasis.
•Incentivizing Private Sector Investment: Creating attractive policies, tax breaks, and grants for private companies to invest in green technology R&D, potentially leveraging CSR funds.
•Strengthening Academia-Industry Collaboration: Facilitating partnerships between universities, research institutions, and industries to translate basic science research into practical green technology solutions.
•Focusing on Niche Green Technologies: Identifying specific green technology areas where Tamil Nadu has a competitive advantage or urgent need (e.g., solar, wind, sustainable agriculture) and directing funds there.
•Developing Skilled Workforce: Investing in education and training programs to create a talent pool capable of driving green technology R&D.

Exam Tip

For 'strategic steps' or 'way forward' questions, always provide multi-faceted solutions involving different stakeholders (government, private sector, academia) and policy instruments.

6. How does the declining national GERD, as mentioned in the background, impact India's overall innovation ecosystem, and what is the government's approach to reverse this trend?

The declining Gross Expenditure on Research and Development (GERD) since 2009-10, reaching 0.64% of GDP in 2020-21, significantly impacts India's innovation ecosystem by:

•Limiting Breakthroughs: Reduced funding curtails the ability to conduct cutting-edge research, leading to fewer indigenous innovations.
•Brain Drain: Talented researchers may seek opportunities abroad if domestic R&D infrastructure and funding are insufficient.
•Economic Stagnation: A weak innovation ecosystem can hinder economic growth and competitiveness in a globalized world.

Exam Tip

Understand the cause-and-effect relationship between GERD and the innovation ecosystem. Also, be aware of the specific policy instruments the government is using to address national challenges.

Practice Questions (MCQs)

1. Consider the following statements regarding India's Research and Development (R&D) landscape: 1. India's Gross Expenditure on Research and Development (GERD) as a percentage of GDP has been increasing since 2009-10. 2. The private sector contributes a higher share to national R&D expenditure compared to the government in India. 3. The draft Science, Technology, and Innovation Policy, 2020, aims to double the domestic GERD every five years. Which of the statements given above is/are correct?

A.1 only
B.3 only
C.1 and 2 only
D.2 and 3 only

Show Answer

Answer: B

Statement 1 is INCORRECT: India’s Gross Expenditure on Research and Development (GERD) as a percentage of GDP has been declining since 2009-10, reaching 0.64% in 2020-21. It has not been increasing. Statement 2 is INCORRECT: In India, the private sector contributes 36% while the government covers the remaining 64% of national R&D expenditure. Therefore, the government's share is higher than the private sector's. Statement 3 is CORRECT: The latest draft of the Science, Technology, and Innovation Policy, 2020, aims to double the domestic GERD every five years. This policy is managed by the Ministry of Science and Technology.

2. With reference to recent initiatives in India's science and technology sector, consider the following statements: 1. The National Supercomputing Mission (NSM) has seen a significant increase in its funding in the 2026-27 budget. 2. The Biopharma SHAKTI mission aims to establish three new National Institutes of Pharmaceutical Education and Research (NIPERs). 3. The India Semiconductor Mission (ISM) 2.0 has a projected outlay of ₹40,000 crore for electronics manufacturing. Which of the statements given above is/are correct?

A.1 and 2 only
B.2 and 3 only
C.3 only
D.1, 2 and 3

Show Answer

Answer: B

Statement 1 is INCORRECT: The National Supercomputing Mission (NSM) saw its funding slashed to a nominal ₹0.01 crore from a revised estimate of ₹535 crore in the previous year, indicating a pivot away from traditional high-performance computing hardware. Statement 2 is CORRECT: The Biopharma SHAKTI mission aims to transform India into a global hub for biopharmaceutical manufacturing and will establish three new National Institutes of Pharmaceutical Education and Research (NIPERs) and upgrade seven existing ones. Statement 3 is CORRECT: The India Semiconductor Mission (ISM) 2.0 has been launched with a massive projected outlay of ₹40,000 crore for electronics manufacturing, with the goal of moving beyond simple assembly to the design of full-stack Indian IP.

3. Which of the following statements correctly describes the 'Tamil Nadu Semiconductor Mission – 2030' mentioned in the state's 2025-26 budget?

A.It is a central government scheme with a projected outlay of ₹40,000 crore for electronics manufacturing.
B.It aims to develop a new city near Chennai over 2,000 acres, featuring IT parks and R&D centres.
C.It will be implemented over five years at a cost of Rs 500 crore to encourage semiconductor design companies and domestic start-ups.
D.It focuses on establishing four new telescope infrastructure facilities for planetary sciences and astronomy.

Show Answer

Answer: C

Option C is CORRECT: The 'Tamil Nadu Semiconductor Mission – 2030' will be implemented over the next five years at a cost of Rs 500 crore. Its objective is to encourage semiconductor design companies and domestic start-ups to establish their design centres in Tamil Nadu. Option A describes the India Semiconductor Mission (ISM) 2.0, which is a central initiative with a larger outlay. Option B describes a separate urban development project planned by Tamil Nadu, not the semiconductor mission. Option D refers to national investments in planetary sciences and astronomy, such as the National Large Solar Telescope, not a Tamil Nadu-specific semiconductor mission.