September 7, 2025

India’s science and technology institutes are stuck in a maze of complicated accounting, strict rules, and poor money support, a recent government check-up has shown. Big names like IITs, IISc, and IISERs complain about low cash for research, hard rules under General Financial Rules (GFR), and weak incentives for private companies to join the science party. India spends only around 0.6% to 0.7% of its GDP on research and development—much less than South Korea’s 4.93%, Japan’s 3.3%, or the US’s 3.46%. This tiny spending is slowing growth and results. Also, unlike top countries where private companies pump 70% of R&D funds, India’s private sector gives just 30%. Experts say tough income tax laws have killed many rewards for donating to research. For example, a law that gave a 100% tax deduction on donations to national labs was removed. Another big tax benefit allowing 150% deductions to companies investing in R&D ended in 2017. The fund rules are tangled too. Money must be spent in strict budget categories, which doesn’t suit the changing needs of research. Different ministries have different rules, creating confusion and delays. Scientists waste time on paperwork instead of research. The government is cooking up solutions: * Boost total R&D spending to 2% of GDP, with half from companies. Make tax breaks juicy, like 100-150% deductions, to pull in more money. * Let institutes move funds within budgets without asking again. * Create one easy system for all R&D grants to speed up approvals and payments. Another pain is the Treasury Single Account (TSA) system started in 2022. It has slowed grant payments to up to 1.5 years! Plus, GST rates on research items jumped to 18-28% from a sweet 5%, and new government rules make buying research chemicals and gear a headache. The fixes? Exempt science institutes from TSA controls, bring back 5% GST on research equipment, and loosen buying rules for consumables. Finally, the pay and perks for scientists are weak. Talented researchers earn less than peers abroad, causing a brain drain and killing motivation. Doctoral and post-doctoral scholars lack enough money and career chances, threatening India’s research future. The government knows it must act fast! It plans to redesign pay with better incentives and boost fellowships for young researchers. With these changes, India aims to shake off red tape and rocket forward in science and technology, truly embracing self-reliance in cutting-edge research.

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Tags: R&d funding, Indian science institutes, General financial rule, Research incentives, Tax laws, Government reforms,