Sci-tech ministry requests FinMin research incentive plan.

NEW DELHI: A senior government official told TNIE that the Ministry of Science and Technology (MoST) has written to the Finance Ministry requesting the inclusion of a Research Linked Incentive (RLI) plan in the upcoming budget to be unveiled in 2024. The programme will encourage enterprises to conduct research and development in the IT industry.

A senior official declared, “We have asked for the RLI scheme along the lines of the production-linked incentive (PLI) scheme to spur research and development in the science and technology space. The overall expenditure in the initial years for the incentives to the qualified enterprises will not exceed R100 crore annually, he noted. The annual expenditures for the programme will rise over time.

According to the official, the programme would encourage breakthroughs in fields relating to emerging technologies like electric vehicles (EV), hydrogen, renewable energy, sustainable technologies, artificial intelligence (AI)-based smart technologies that involve machine learning, semiconductor designing, and research.

The official stated that in order to improve investment and R&D in the industry, Niti Aayog had filed a proposal to the department of scientific and industrial research (DSIR). The think group wants India’s position in the Global Innovation Index to rise. Furthermore, it is acting proactively to put in place policy changes that can maximise India’s natural potential.

Although the government offers tax incentives for investments in R&D, the official claimed that these have not been very effective in fostering innovation in this field. Future society will require green and sustainable technologies. Energy will be used more effectively thanks to smart technologies, the official predicted. India must improve in order to surpass China and other advanced economies, he continued.