It is often alleged that one of the main reasons India has failed to catch up with Western and rapidly developing nations like China is the lack of funding for research. Successive governments have failed to give proper focus to research and innovation. As a result, many brilliant minds have migrated to the West and are doing considerably well. The two recent developments – a notice issued to the Indian Institute of Technology-Delhi (IITD) for payment of Rs. 120 crore in GST and a steep increase in customs duty on lab chemicals from 10% to 150% – once again reflect the government’s utter callousness toward public-funded research and higher education.
Fortunately, the customs duty hike on lab chemicals, announced in the Budget, was rolled back following a massive outcry from scientists. However, the GST notice sent to IITD and a few other top-ranking research and academic institutions is deeply concerning. It will hurt the morale of those working in academic institutions. This tax notice on research funding comes a couple of years after the increase in GST rates on technical tools from 5% to 18%, which made the procurement of scientific and technical instruments, equipment, accessories and consumables very costly. While private organizations may gradually absorb the impact of rate changes, public-funded organizations have limited capacity to do so. If this is going to be the government’s approach to research activity, India will forever remain a country with lost opportunities and untapped potential. Currently, India ranks very low in terms of funding for research and development (R&D) – below 1% of GDP.