Piyush Goyal urges India Inc to utilise $12 bn research fund

Union Minister of Commerce & Industry Piyush Goyal has urged Indian industry to use the ₹1 lakh crore ($12 billion) Anusandhan National Research Foundation (ANRF) fund, which the central government recently operationalised, to foster innovation and create a research-based ecosystem in the country.

Delivering the keynote address at the Federation of Indian Chambers of Commerce & Industry’s (FICCI) 97th Annual General Meeting and Annual Convention in New Delhi today, Goyal said that a quick uptake of the fund by the industry may even see the government putting more funds on the table. A $12 billion fund for research in India should not be equated with the same amount a company will invest in innovation in the US or Europe, he said.

“The cost of innovation, the cost of trying out trials, and the cost of research in India are significantly lower than the costs in developed countries. If Switzerland, with $103,000 per capita income, or the US with $80,000 per capita income invests in developing a new drug, invests in a new innovation, let’s say on battery, their cost is going to be at least 10 times the cost that we will incur in India. So effectively when the government is putting up for your use $12 billion of government funding, it equates to a $120 billion or a $150 billion worth of research that is happening in the developed world”, the minister explained, adding: “With this pool of capital, if we can quickly use it, I assure you the government will not be found wanting to put up additional funding on the table”.

The minister also assured that the government is willing to simplify any processes, speed up the decision-making process, or address any issues with the research if brought to its notice. “We are open to your suggestions. FICCI could put together a small team of company representatives who are involved with innovation and see how we can work together to even make the guidelines or the processes, outcome-oriented, and truly help India develop the ecosystem required for the R&D across the length and breadth of the country”, Goyal said.

The Union Budget 2024-25, announced in July, announced a financing pool of ₹1 lakh crore to spur private sector-driven research and innovation at commercial scale. It said the Anusandhan National Research Fund will be for basic research and prototype development.

In October, the government launched the first two initiatives of the Anusandhan National Research Foundation (ANRF) – the Prime Minister Early Career Research Grant (PMECRG) and the Mission for Advancement in High-Impact Areas -Electric Vehicle (MAHA- EV) Mission. While the PMECRG invites early career researchers to join the country’s transformative journey and contribute to the advancement of India’s scientific excellence and innovation, the MAHA- EV Mission is designed to build a robust research and development ecosystem for Electric Vehicle (EV) components particularly battery cells, Power Electronics, Machines, and Drives (PEMD) and charging infrastructure.