NEW DELHI: The Ministry of Science and Technology (MoST) has written to the Finance Ministry to introduce a Research Linked Incentive (RLI) scheme in the next budget to be announced in 2024, a top government official told TNIE. The scheme will aim to boost research and development in the IT sector by giving incentives to the companies.
“We have requested for the RLI scheme on the lines of production-linked incentive (PLI) scheme to give impetus to research and development in the science and technology space,” a top official said. He further added that the total outgo in the initial years for the incentives to the eligible companies would not be more than R100 crore a year. Gradually, the annual spends on the scheme will be increased.
The scheme will promote innovations in areas related to new technologies such as electric vehicles (EV), hydrogen, renewable energy, sustainable technologies, artificial intelligence (AI) based smart technologies involving machine learning, semiconductor designing and research, as per the official.
According to the official, Niti Aayog had sent a proposal to the department of scientific and industrial research (DSIR) that such a roadmap be prepared to increase investment and R&D in the sector. The think tank wants improvement in India’s ranking in the Global Innovation Index. Additionally, it is taking proactive measures to implement policy interventions that can harness India’s inherent potential.
The official said that though the government provides tax incentives for investments in R&D, that has not been very helpful to boost innovation in this space. “There is a need for sustainable and green technologies in the future. Smart technologies will help in the efficient utilisation of energy,” the official stated. He added that India needs to become better than China and other competitive economies.
Improvement in India’s ranking
Niti Aayog wants improvement in India’s ranking in the Global Innovation Index. It is taking measures to implement policy interventions that can harness India’s inherent potential.