Please Don’t Neglect R&D, Finance Minister.

R&D incentives is a key tool used by Governments globally to promote innovation, create high paying jobs and simulate industry growth with countries like United States of America which has made the R&D Tax credit policy permanent in 2016 recognising the impact it has on economic growth of the country.
India is at the cusp of start up growth as also industries has seriously started investing in Research & Development over the last 5 years to leverage market opportunities, address environmental concerns and create indigenous technologies which is a must for India to become an economic superpower.
Unfortunately the Government policy making towards R&D incentives has been short sighted and temporary making it hard for serious investors to invest in R&D to plan long term as also for SMEs who are now gearing  up to make substantial investment in R&D to create new products and technologies for disrupting the market.
The R&D tax benefits is granted in India based on getting certification from Dept. of Scientific & Industrial Research (DSIR) which can easily take one year or more as also the scheme is tied to the physical location of the company whereas globally the incentives are project based which is flexible, transparent and quick to implement.
In fact despite being in middle of recession for last few years European Union (EU) has been significantly increasing incentives in R&D and their Vision 2020 program has already been envisaged beyond 2020 as investing in innovation is the only way to increase growth and create jobs.
India needs to take a holistic view of R&D incentives as a policy making tool which can stimulate growth and make India an attractive R&D destination.
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Rajeev Surana is a Patent Attorney and author of Protect Your Ideas book. He is also an avid marathon runner and been deeply involved with the innovation ecosystem in India. He can be reached on rajeev@scinnovation.in

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