The National Research Foundation (NRF) Bill: Transforming India’s Knowledge Economy


The introduction of the National Research Foundation (NRF) Bill in the upcoming Monsoon Session of Parliament is indeed a significant game-changer for India. This legislation has the potential to dramatically alter the contours of our knowledge economy. The overarching aim of the NRF is to augment the quality of research in India by instating a comprehensive, systematic framework to govern the currently disjointed research environment. NRF would help in nurturing an ecosystem that cultivates scientific temperament, encourages innovation, and promotes intellectual curiosity.

However, as the experience of other countries such as the US, Germany, and South Korea shows, setting up an institution like NRF, while essential, is not sufficient in itself. To truly transform India into an innovation-driven country, the following objectives must be at the forefront of our strategic approach:

Increasing Research and Development (R&D) Expenditure:

NRF’s allocation of ₹50,000 crore for R&D over five years (2023-28) may seem colossal by Indian standards, but contextually, India’s R&D expenditure is a paltry 0.8% of GDP, dwarfed by nations like Israel (5.44%), the US (3.4%), and China (2.4%). China’s 2022 R&D spend surpassed $439 billion compared to India’s roughly $65 billion. India needs to magnetize private sector R&D investment, achievable by solidifying our IPR regime and Patent Office.

Fostering an Inclusive Research Ecosystem:

Currently, research is conducted in silos, within a few select institutions, which often results in an isolated, constrained knowledge environment. The flow of ideas and cross-pollination of concepts are severely hindered. This isolation can lead to duplication in efforts, inefficiency, and a slow pace of innovation, which are counterproductive to a progressive R&D strategy

Contrarily, an inclusive research ecosystem fosters diversity of thought, a broader perspective, and greater innovation. It encourages collaboration, amalgamation of distinct viewpoints, and the cross-fertilization of ideas that can catalyze breakthroughs in science and technology. Hence, NRF’s mission must not be limited to cultivating mere pockets of excellence, but to generate an expansive, interconnected ecosystem that fosters powerful alliances between academic institutions and between higher education institutes and industry.

Encouraging Healthy Competition:

The competitive landscape within academia serves as a powerful catalyst for research and innovation. It propels institutions to sharpen their research abilities, attract leading researchers, secure vital project funding, and deliver exceptional outputs. Such rivalry cultivates an ecosystem that champions innovation and propels institutions to continuously strive for the cutting edge of knowledge.

Furthermore, this competition stimulates collaboration and the sharing of knowledge. To keep a competitive edge, organizations often build strategic alliances with diverse entities, including industries and research institutes. These partnerships trigger the sharing of ideas, resources, and expert knowledge, igniting fresh insights and innovative breakthroughs. Importantly, this competition generates positive ripple effects in local economies. Especially in remote regions, research-driven universities become crucial economic anchors, fueling innovation. NRF should promote this.

Attracting Global Talent:

Both the US and China have effectively propelled innovation, owing largely to their capacity to attract global talent for research and development. A significant strategy in China is the Thousand Talents Plan (TTP), an initiative established by the Chinese government to recruit foreign expertise, predominantly in science and technology. Inaugurated in 2008, the TTP has compellingly attracted thousands of researchers worldwide, including professionals from the US and the EU. The program has also facilitated the return of top foreign scientists to China, leading to the introduction of global leading technologies and the establishment of cross-border companies. Additionally, the program has been part of China’s efforts to transition from a manufacturing-based economy to an innovation-based one. NRF should create a framework to attract both foreign nationals as well as Indians to carry out research in India.

Streamlining Bureaucratic Procedures:

It is imperative to address the core issue at hand, the bureaucratic impediments that often hinder R&D. While the NRF does make significant strides in resolving the funding gap, the crux of the research problem often commences with the paperwork and bureaucratic procedures that precede the actual research. From the usage of zero balance accounts to the procurement of lab equipment, researchers are often mired in administrative procedures that detract from their primary purpose of producing innovative research.

One proposition is the formation of an ‘Ease of Doing Research Index’ by the Office of the Principal Scientific Adviser. Such an index, premised on an exhaustive operation management study, can identify the key hurdles impeding researchers from executing high-quality research. Nevertheless, it’s imperative to ensure that this index does not succumb to the same fate as numerous other indices that simply serve as hierarchical rankings. This ought to be a genuine scholarly endeavor. This index would serve as a reference for policymakers and even NRF to enact effective measures to reduce these obstacles and thus foster a more conducive environment for research activities.

A CAG report from December 2022 underlines the alarming shortfall in publications in high-impact journals, casting a question mark over the quality of our projects. Meanwhile, China, once known for volume over value, now outpaces the US in most-cited papers, signaling a significant rise in research quality. Hence, NRF should not just be about research. It’s about the quality of research, impactful publications, and transformative patents. That’s where real progress lies.


The National Research Foundation (NRF) Bill has the potential to revolutionize India’s knowledge economy. By emphasizing increased R&D expenditure, fostering an inclusive research ecosystem, encouraging healthy competition, attracting global talent, and streamlining bureaucratic procedures, the NRF can unlock India’s research potential and position the country as a global leader in innovation and scientific advancements. To achieve this, it is crucial to focus not only on the quantity but also the quality of research, impactful publications, and transformative patents. By embracing these objectives, India can pave the way for a prosperous future driven

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