Dharmendra Pradhan criticises India Inc, flags CSR spending as 'tokenistic'

Dharmendra Pradhan urges India Inc to boost direct R&D investment, saying CSR-led spending is tokenistic and calling for stronger industry-academia collaboration

Union Education Minister Dharmendra Pradhan on Tuesday criticised corporate India’s approach to research funding, calling corporate social responsibility (CSR) spending “tokenistic” and urging companies to step up direct investment in research and innovation.

 

Speaking at the IIT Madras Technology Summit, Pradhan said India’s research ecosystem remains heavily dependent on government support, with nearly 70 per cent of total investment coming from the public sector.

 

“This is not a good sign. The share needs to be at least half and 50 per cent research investment has to come from industry,” he said, adding that industries are not putting enough faith in Indian institutions and innovation centres.

 

 

He said companies should treat research funding as a core investment rather than a CSR activity, arguing that innovation spending is directly linked to long-term growth.

 

“China’s market is its own population. Similarly, India’s primary market should also be its population, plus the Global South. The entire Global South is depending on India for its cost-effectiveness,” he added.

 

Pradhan questioned why companies that invest in factories, infrastructure and human resources remain reluctant to back domestic research. He said industry often prefers to purchase technologies or licences from abroad which are developed by Indians overseas rather than fund homegrown innovation.

 

At the same time, the minister acknowledged a structural gap between academia and industry, citing a longstanding perception within institutions that engagement with profit-making enterprises is undesirable. Calling for greater collaboration, he said institutions — both centrally and state-funded — must engage more actively with society and demonstrate the real-world impact of their work.

 

Pradhan highlighted the role of the Anusandhan National Research Foundation (ANRF) as a key platform to bridge this divide, alongside the government’s Rs 1 lakh crore research and development fund. These initiatives, he said, are designed to connect industry, research institutions and startups, and to enable more collaborative innovation.

 

The ₹1 lakh crore Research, Development and Innovation (RDI) Scheme is a central government initiative aimed at increasing investment in research, particularly from the private sector. Anchored under the ANRF, the scheme provides long-term financing support for research and innovation projects, including in sectors such as artificial intelligence, semiconductors and clean energy.

 

He also urged institutions to move beyond traditional academic metrics such as publications, citations and patents, and focus on developing practical solutions for everyday challenges.

 

The minister’s remarks come amid broader policy efforts to strengthen India’s innovation capacity and reduce reliance on imported technologies. While the government has rolled out multiple initiatives and funding mechanisms in recent years, industry participation in research spending has remained relatively limited.