Vigyan Dhara (2025): A Strategic Shift Or A Repackaged Promise? – IMPRI Impact And Policy Research Institute

Policy Update
Deepankshi Agnihotry

Introduction

“Technology by itself doesn’t solve problems. It has to be embedded in a broader system of governance, regulation, and social context to be truly transformative.”(Nandan Nilekani) 

As we navigate the ever-evolving domain of science and technology, it becomes clear that to shape a broader public policy and address compelling challenges of the present, mere innovation or research isn’t enough. A broader, comprehensive and in line approach has to be followed that not only takes science, innovation, research, and development into focus but also embeds all these for holistic public policy formulation.

Considering this vision, the Union Budget 2025-26 introduces an umbrella scheme, “Vigyan Dhara”.While it may initially seem like rebranding existing concepts, the scheme effectively consolidates three ongoing initiatives of the Department of Science and Technology (DST) into one cohesive framework. The integration is designed to streamline implementation, enhance monitoring, and improve the evaluation process. By synchronisation efforts, “Vigyan Dhara” seeks to create a more coordinated and impactful approach, driving greater efficiency in scientific advancements and policy outcomes.

Background

To cultivate a scientific temper and promote an ecosystem of innovation, technological progress, and human capacity building, the Government has merged three major DST schemes under the newly structured umbrella of Vigyan Dhara.

The principal schemes that have been merged are outlined below:

1. Science and Technology (S&T) Institutional and Human Capacity Building component can be divided into sub-components for better analysis:

• Institutional Capacity Building
• Human capacity building

Both the capacity building initiatives subsume various schemes of government that focus on building an innovation infrastructure and at the same time harnessing human capacity building for better utilizing and efficient use of such infrastructure. The scheme under these and their focus areas are shown in Tables 1&2-

Table 1

Source: MADE WITH GOOGLE SHEETS

Table 2

Source: MADE WITH GOOGLE SHEETS

2. Research and Development programs– This subsumed component focuses on R&D programs like-

• National programme on Nanoscience and Technology (NPNST)– Originally launched as the Nano Mission in 2007, this program was restructured into the NPNST after its completion in 2017.In 2024 it was renamed  as Nano and Advanced Materials Divisions (NAMD).It continues to support research in nanoscience and nanotechnology.

 Notably, the Nanoelectronics Network for Research and Applications (NNetRA) is a collaborative initiative by the DST and the Ministry of Electronics and Information Technology (MeitY). Implemented across five institutes with co-funding from both ministries and partial support from host institutions, NNetRA aims to advance applied research and innovation in nanoelectronics.

• National Geospatial Programme (distinct from the newly launched National Geospatial Mission (2025-26).- This is an old scheme evolved from the natural resources data management system (1982). This scheme primarily focuses on R&D in geospatial science and on providing localized geospatial solutions to foster a vision of the geospatial ecosystem.

            Table 3 highlights some programmes under National geospatial programme-

Table 3

Source: MADE WITH GOOGLE SHEETS

3. Innovation and Technology Development– This component encompasses programs that are focused on driving innovation at all levels, including school, higher education and industry. Technological development and deployment are also taken care of by focusing on collaboration between academia, government, and industry, promoting startups. This is done through initiatives like-

i.National Science & Technology Entrepreneurship Development Board (NSTEDB)-The board focuses on driving knowledge-driven enterprises. It also fosters Start-up ecosystems Science, Technology & Innovation (ST&I) intervention. This is achieved by NSTEDB’s flagship umbrella program, National Initiative for Developing and Harnessing Innovations (NIDHI). Key activities undertaken under this are shown in Fig1.- 

Fig 1-Made with Canva

These missions aim to inculcate a spirit of innovation & entrepreneurship amongst various sections of society. Some examples of promising products from startups incubated by NIDHI include:

• Vecmocon Technologies, incubated at the NIDHI Centre of Excellence (CoE) at IIT Delhi, works on advanced solutions such as smart battery management systems and motor controllers.
• AgroNxt Services Pvt. Ltd., incubated at the NIDHI Technology Business Incubator (TBI) at PUSA-IARI, Delhi, which offers climate-smart solutions aimed at boosting farmer productivity and profitability.
• Galaxeye Space Solutions Private Limited which has developed a Synthetic Aperture Radar (SAR) system that utilizes a ground-based rail platform to enhance imaging capabilities.

ii.Technology Mission Programme on Water and Clean Energy– The Mission ensures water and energy security through R&D in  Science & Technology in the related field. It covers various missions and programmes like Smart Grid Research Initiative, Clean Fuel Research Initiative, etc.

iii.Technology Development and Transfer supports technology development in various fields and invites proposals in core areas like Waste management, Biomedical devices, Technology Development Programme, etc.

iv.Technical Research Centers– Under this, some technical research centers were established in FY 2015-16, like Jawaharlal Nehru Centre for Advanced Scientific Research (JNCASR), Bengaluru, Indian Association for the Cultivation of Science (IACS), Kolkata, etc.

v.Science and Heritage Research Initiative (SHRI)- Science and Heritage Research Initiative (SHRI), a new programme on Heritage Research, plans to engage experts from diverse fields for data capture and analysis, to form new collaborations, and provide viable technology to address cultural heritage-related issues.

Budgetary Allocation 

A significant increase in allocation of funds for the Vigyan Dhara scheme was witnessed from Rs.330.75 crore in 2024-2025 to Rs. 1425 crore in 2025-2026. The proposed outlay for implementing the scheme is Rs. 10579.84 crore for 2021-22 to 2025-26, aligned with the 15th Finance Commission term.

Emerging Issues

Although India has made recent strides in increasing its R&D spending, which is observed to have doubled in the last decade from ₹60,196 crore in FY 2010–11 to ₹1,27,381 crore in FY 2020–21 ( Economic Survey 2024-25). Despite this increase, GERD as a percentage of GDP has remained relatively stagnant, hovering just around 0.64%, which causes significant brain drain due to a lack of good opportunities. This is significantly lower than the R&D expenditure of countries like China (2.4%), the US (3.5%), and Israel (5.7%). This accounts for some significant issues –

i.Low Private investment- The Economic Survey 2025 pointed out that the reason for the low expenditure is lukewarm private sector investment in R&D. The private sector contribution in India is just 36.4%, while in countries like China and the US, more than 50% of investment in R&D comes from the private sector. Morevere the R&D investment pattern is highly discrete while the public funding remains mostly concentrated in sector like defence, fuel and metallurgy and industrial research more or less concentrated in areas like pharmaceutical, IT, transportation and biotechnology emphasising basic research in this area while leaving little space for applied or practical research necessary to attract private players.

ii.Low Land to Lab time- The Economic Survey 2022 indicates that Indian institutions develop technologies. Still, their transformation time from land to lab and then to society is relatively low due to procedural delays hindering the commercialization of lab findings.

Apart from these, the Draft paper on Science and technology and innovation policy 2020 highlights some significant issues in the R&D ecosystem-

First,  the quality and output of research in indian universities typically don’t pursue R&D beyond early stages. This leads to a significant gap in commercialization, leading to a lack of practical applications from academic research.

Secondly, India faces challenges in achieving technology indigenization due to an unbalanced allocation of resources between academic and post-academic research, a shortage of trained human resources and weak interconnectedness among stakeholders, which makes this issue more serious.

Thirdly, weak interconnectedness across government, academia and industry also weak inter-ministerial connectedness hampers collaborations and synergy among various stakeholders, causing the effective result to be delayed.

Fourthly, India’s R&D ecosystem is marred with challenges related to equity and inclusion. Inequitable participation in STEM fields exists in terms of gender, social, regional, and economic diversity. Additionally, there is a lack of inclusive culture within practical science, which is compounded by inadequate incentives and institutional frameworks.

Way Forward

In the Twelfth Five-Year Plan (FYP), R&D spending as a percentage of GDP was targeted at 2%, a goal that still remains unachieved. While India is undoubtedly progressing towards an R&D ecosystem that moves beyond mere policy-making or vision documents, reaching the level of world-leading economies requires more strategic and sustained efforts. R&D plays a crucial role in this transformation, and the following steps are necessary:

First, to encourage private sector participation, the government can consider mandating that 50% of CSR spending be directed towards R&D. Companies can invest directly in research projects, especially those undertaken by Institutes of National Importance and Institutions of Eminence with strong research track records.

Secondly, the government should allow weighted deductions for both contract and in-house research under relevant sections of the Income Tax Act to incentivize private investment. India already provides R&D tax incentives such as a 200% deduction for in-house and collaborative research, a 100% deduction for general R&D expenses, and a 10% tax rate on patent royalties. However, to further strengthen the ecosystem, certain steps are necessary (Ghosh, R., IDSA).

• The scope of the Patent Box regime should be expanded to include commercialised patented products and overseas-licensed IP.
• There is also a need to increase the minimum investment threshold for corporate tax concessions.
• The introduction of tax-free innovation bonds could provide low-cost, long-term funding for R&D.

Thirdly, the ANRF (Anusandhan National Research Foundation) is expected to address the persistent lack of coordination between industry, academia, government departments, and research institutions by creating a robust interface mechanism. Enhancing industry-academia collaboration, which is already visible through IIT research parks, innovation centers, and similar initiatives. The development of COVAXIN is a live example of what such collaborations can achieve.

Fourthly, a paper on R&D expenditure by the EAC-PM (2019) recommended empowering the Office of the Principal Scientific Adviser (PSA) to act as the top national coordinator for R&D, bringing together all key stakeholders, including CPSEs, universities, and international institutions.

In addition to the above, the National IPR Policy (2016) must be duly implemented to gain investor confidence and attract greater R&D investment. To enhance R&D infrastructure, the Draft Science, Technology and Innovation Policy (2020) outlines several solutions, including:

• Establishment of Higher Education Research Centres,
• Creation of Collaborative Research Centres, and
• Establishment of self-sustaining equipment infrastructure, among others.

Conclusion

According to a World Bank study, a 1% increase in R&D investment can lead to a 0.61% increase in GDP in developing countries like India. The NITI AAYOG also emphasised that  R&D is central to boosting high-tech manufacturing, green energy, agritech and digital innovation, which are the key drivers of the $5 trillion economy goal.

In this context, the launch of Vigyan Dhara as an umbrella scheme marks a strategic shift in India’s research and innovation ecosystem. It reflects successful models of Integrated policy frameworks like Mission Shaki, Samagra Shiksha Abhiyan and National Action Plan on Climate Change, which streamlined fragmented schemes, ensuring consolidated fund flow and delivered measurable outcomes across sectors. Similarly, Vigyan Dhara is poised to consolidate multiple research initiatives and schemes into a mission-mode platform fostering scientific innovation, capacity building and entrepreneurship.

Complementing with forward-looking initiatives like the IndiaAi Mission, Nation Quantum Mission, National Supercomputing Mission and the DISHA(Developing, Innovation, Successful harnessing and Adoption program ) that will support ANRF, Vigyan Dhara will strengthen India’s progress towards Amrit Kaal and fulfil its global commitments under Sustainable Development Goal 9 ( (Industry, Innovation, and Infrastructure).

References

1. Department of Science and Technology (DST). (2025). Annual report 2024–25. https://dst.gov.in/sites/default/files/Annual%20Report_2025_English.pdf
2. India Science, Technology & Innovation Portal. (n.d.). R&D expenditure ecosystem. https://www.indiascienceandtechnology.gov.in/sites/default/files/file-uploads/roadmaps/1571900991_R%26D%20book%20expenditure%20ecosystem.pdf
3. Ghosh, R. (2024, November). India’s R&D investment lags behind global peers: Private sector involvement low. Institute for Defence Studies and Analyses (IDSA). https://www.idsa.in/wp-content/uploads/2024/11/01-jds-18-3-2024-Ranjit-Ghosh.pdf
4. Moneycontrol. (2025, February 5). Economic Survey: Lack of R&D investment by the private sector. https://www.moneycontrol.com/news/business/economic-survey-calls-out-lack-of-r-d-investment-by-the-private-sector-12925604.html
5. The Economic Times. (2024, November 18). India’s R&D investment lags behind global peers: Economic Survey. https://economictimes.indiatimes.com/news/science/indias-rd-investment-lags-behind-global-peers-private-sector-involvement-low-economic-survey/articleshow/111927926.cms
6. The New Indian Express. (2024, July 18). Budget boost needed for mission-oriented R&D plan. https://www.newindianexpress.com/opinions/2024/Jul/18/budget-boost-needed-for-mission-oriented-rd-plan
7. DD News. (2025, March 11). India’s R&D spending doubles over the last decade. https://ddnews.gov.in/en/indias-rd-spending-doubles-over-the-last-decade-reaching-rs-1-27-lakh-crore-jitendra-singh/

About The Contributor: Deepankshi Agnihotry is a research intern at IMPRI and holds a postgraduate degree in Electronics, is curious and passionate about sustainability and impactful policy solutions.

Acknowledgement: The author would like to express sincere gratitude to Dr. Arjun Kumar, Dr. Vaishali Singh, Ms. Aasthaba Jadeja, and the IMPRI team for providing the opportunity to write this article. I also extend my heartfelt thanks to Mr. Soorya and Mr. Yash Kumar for their valuable review and feedback.

Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.

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