Impetus for science amidst a global churn

The relentless rise of technologies pervades every aspect of human life today, and Artificial Intelligence (AI) is its enforcer. From manufacturing to services, from nano-materials to space travel, from new chemistry to biotechnology, the pace of this rise is frenetic. There are two extreme ways—and a few in between—for countries to address this rise. The first is to be a passive user and play with markets, services, and exports of natural resources, including human talent. The second is to become a truly competitive player in this changing world, and to tilt the use of science and technology for our social and economic benefit. Budget allocations can help in pointing out the direction.

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On the one hand, the 2026-2027 budget and the Economic Survey 2025-26 have collectively signalled a fundamental reorientation of national strategy, moving away from technology adoption alone. The fiscal framework for 2026-27 has tried to address this by concentrating resources in frontier domains such as semiconductors, biotechnology, and space exploration, while addressing some bottlenecks that have impeded the translation of laboratory research into market-ready products. On the other hand, effective change requires many other challenges that need to be overcome.

A pillar of the strategy as articulated, is the State driving entrepreneurship. The government has assumed the role of a “monetary shareholder” and a catalyst for high-risk innovation. This is most evident in the operationalisation of the ₹1 lakh crore Research, Development, and Innovation (RDI) scheme and the launch of Biopharma SHAKTI, where the State provides long-term patient capital to bridge the gap between academic discovery and industrial commercialisation.

For 2026-27, the department of science and technology (DST) has been allocated about ₹28,000 crore, a significant portion of which is dedicated to the new RDI funding mechanisms and mega-science facilities. The 2026-27 budget marks the full operationalisation of the ₹1 lakh crore RDI scheme. For the current fiscal year, ₹20,000 crore has been specifically earmarked within the DST budget to provide longterm, low-interest funding for private-sectorled innovation. This intervention is designed to correct a persistent “market failure” in the Indian ecosystem — the historic risk-aversion of the private sector, which has traditionally preferred technology licensing or imports over original research.