Content

1. Linked civilisations, a modern strategic partnership
2. A grand vision and the great Indian research deficit

Linked civilisations, a modern strategic partnership

Why in News ?

• Chabahar Port long-term agreement (2024–25) revived operational momentum despite earlier sanctions-driven delays; India Ports Global Ltd. advancing terminal operations and multimodal linkages.
• INSTC revival & Eurasian connectivity push amid Red Sea supply-chain risks and Suez Canal congestion; renewed strategic relevance of the India–Iran–Russia corridor.
• Energy security recalibration as India weighs diversification beyond Gulf monarchies and reassesses post-sanctions crude sourcing from Iran.
• West Asia security flux (Israel–Iran tensions, Hormuz Strait vulnerabilities, Afghanistan instability) increasing the strategic salience of Tehran–New Delhi coordination.

Relevance

• GS-II — International Relations / India & its Neighbourhood / West Asia
  • Civilisational ties → cultural diplomacy, soft power
  • Energy security & connectivity geopolitics (Chabahar, INSTC)
  • Strategic autonomy, multipolarity & regional stability
  • Impact of sanctions, great-power competition, maritime chokepoints

Practice Questions 

• “India–Iran ties are shifting from a culture-led relationship to a geo-economic and connectivity-driven partnership.” Examine, with reference to Chabahar Port and the INSTC. (15 marks)

Foundational Basics

• Civilisational Linkages
  • Shared Indo-Iranian linguistic & cultural roots; parallels between Rigveda & Avesta traditions.
  • Persian as court & cultural language in India for >600 years; deep literary-intellectual exchange.
• Diplomatic Milestone
  • Formal relations: 1947–48; upgraded to Strategic Partnership (2003 Tehran Declaration).

Strategic Pillars of the Partnership

Energy Security (Core Driver)

• Before sanctions, Iran was India’s 2nd–3rd largest crude supplier (≈10–13% of imports in 2016–18).
• Payment mechanisms earlier used: rupee–rial trade via UCO/IDBI, escrow-linked settlements.
• Post-sanctions reality: imports dropped to near-zero after 2019; raises:
  • Higher freight & risk exposure via alternative suppliers.
  • Loss of access to discounted crude & long-term contracts.
• Future pathways
  • Resumption under sanction relief; LNG, petrochemicals, upstream investments (ONCG Videsh prospects).

Connectivity & Geo-Economics

• Chabahar Port (Shahid Beheshti Terminal)
  • India’s only overseas port investment; gateway to Afghanistan, Central Asia & Eurasia.
  • Bypasses Pakistan; complements Zaranj–Delaram highway access.
• INSTC (International North-South Transport Corridor)
  • Multimodal India–Iran–Caspian–Russia–Europe route.
  • Evidence from pilot runs: ~40% shorter & ~30% cheaper vs Suez-centric routes (time-cost advantage in dry bulk & general cargo).
  • Strategic payoff: trade resilience + logistics hedging during maritime chokepoint disruptions.

Security & Regional Stability

• Common concerns: terrorism, radicalisation, narcotics trafficking, instability in Afghanistan.
• Quiet cooperation in maritime awareness, West-Asia crisis management, and evacuation logistics.
• Hormuz & Arabian Sea security: stability critical for India’s energy lifelines and shipping.

Technology, Knowledge & New-Economy Synergies

• Diversification beyond hydrocarbons:
  • IT services & digital solutions (Indian strength).
  • Nanotechnology, biotech, medical sciences (Iranian research ecosystem).
  • Potential in pharma co-production, tele-medicine, science exchanges.

Constraints & Structural Challenges

• Sanctions & third-party pressures — constrain banking, shipping insurance, technology transfer.
• Dollar-denominated trade exposure — volatility in settlement channels.
• Regional rivalries — balancing ties with US, GCC, Israel while engaging Iran.
• Project delays & execution gaps — episodic progress in Chabahar & rail spurs.

Policy Adaptations & Opportunities (Data-Focused)

• Local-currency trade & escrow clearing to de-risk settlements.
• Dedicated INSTC logistics windows (rail-port integration, container aggregation).
• Energy diplomacy mix — partial restoration of Iranian crude under waivers/relief to reduce import concentration risk.
• Maritime-industrial cooperation — ship repair, port IT systems, coastal security tech.
• Regional value-chains — fertilizers, petrochemicals, food-grains corridor via Chabahar.

Strategic Significance for India

• Trade diversification + Eurasian access without Pakistan transit.
• Resilient supply chains in a world of contested sea lanes.
• Balance-of-power diplomacy in West Asia amid multipolar realignment.
• Strategic autonomy through multi-vector partnerships.

Way Forward

• Fast-track Chabahar operationalisation (equipment, berth capacity, hinterland links).
• Institutionalise INSTC timetables, unified tariffs, digital documentation.
• Re-engineer rupee–rial/alternative clearing to stabilise trade.
• Expand innovation-driven cooperation (IT-health-science) to reduce oil-dependence.
• Maintain calibrated diplomacy that protects India’s energy & connectivity interests while managing geopolitical risk.

A grand vision and the great Indian research deficit

Why in News ?

• Debate on innovation capacity & Viksit Bharat 2047 goals amid concerns that low R&D intensity may constrain technological leadership and productivity growth.
• Global comparison alarms — India’s total R&D spend (~0.65–0.7% of GDP) lags far behind innovation economies (US, China, Israel, South Korea).
• Government push — launch of the ₹1 lakh-crore Research, Development & Innovation (RDI) Fund, semiconductor & deep-tech mission announcements, renewed demand for private-sector participation.

Relevance

• GS-III — Economy / Science & Tech / Growth & Development
  • Innovation–productivity link & tech-sovereignty
  • Public vs private R&D funding structure
  • Brain drain, academia-industry disconnect, governance bottlenecks
  • Mission-mode tech programmes, IP ecosystem, deep-tech industrialisation

Practice Questions

• Low R&D intensity is India’s biggest structural barrier to technological leadership and productivity growth. Critically analyse with evidence and reform priorities. (15 marks)

Foundational Basics — What is R&D and Why It Matters

• R&D = knowledge creation → technology → productivity → competitiveness (Schumpeterian innovation-growth link).
• Strong R&D ecosystems drive:
  • Industrial upgrading & export complexity
  • Strategic tech autonomy & national security
  • High-wage job creation & scientific leadership
• Global pattern: in advanced economies, industry finances 65–75% of R&D; universities & government play catalytic roles.

India’s R&D Performance — The Numbers

• Research Output
  • Population share ≈ 17.5% of world, research share ≈ ~3% → large capacity-output gap.
• Patents (WIPO 2023)
  • 64,480 total filings; global rank: 6th; growth: +15.7% (from a low base).
  • Share in global applications: ~1.8% (of 3.55 million).
  • Resident filings per million people: rank ~47 → weak innovation intensity.
• R&D Spending (GERD as % of GDP)
  • India: ~0.6–0.7% (stagnant / slipping as GDP grows).
  • China: ~2.4% | US: ~3.5% | Israel: ~5.4%+ | Korea: ~4–4.5%.
• Private vs Public Funding
  • Government-linked sector share ≈ 63.6%;
  • Private industry ≈ 36.4% (inverse of global best-practice pattern).
• Benchmark Contrast
  • Huawei R&D (2023): CNY 164.7 bn ≈ $23.4 bn → exceeds India’s total national R&D outlay across sectors, signalling under-scale investment.

Structural Causes of the Deficit

• Low private-sector appetite
  • Focus on incremental upgrades, tech-licensing, cost-efficiency—not frontier innovation.
  • Risk-averse capital markets, weak returns to deep-tech investment.
• Academia–Industry Disconnect
  • Limited joint labs, contract research, tech-transfer offices, incubation pipelines.
  • Research often theoretical, poorly commercialised (“valley of death” problem).
• Talent Leakage & Ecosystem Gaps
  • Brain drain to better-funded global labs; weak domestic lab infrastructure, salaries, tenure tracks.
• Bureaucratic Frictions
  • Slow approvals, staggered fund release, compliance overload → disrupts long-horizon projects.
• Fragmented Research Missions
  • Scattered, small-ticket grants; insufficient mission-scale, outcome-linked programmes in critical tech.

Macro-Level Risks if the Gap Persists

• Slower productivity growth & manufacturing upgrading.
• Import dependence in semiconductors, electronics, defence & energy tech.
• Missed opportunities in AI, quantum, advanced materials, biotech, green tech.
• Reduced export competitiveness & tech sovereignty.

Reform Agenda — Data-Focused Policy Priorities

• Raise GERD to ≥2% of GDP in 5–7 years
  • Public pump-priming + tax credits, weighted deductions, matching grants to push industry share ≥50%.
• Operationalise the ₹1-lakh-crore RDI Fund effectively
  • Prioritise frontier domains: semiconductors, AI, quantum, clean-energy, space, defence tech.
  • Ensure time-bound disbursal, milestone-based outcomes, independent evaluation.
• Mission-Mode Innovation Platforms
  • Large, multi-year national missions with program managers, unified roadmaps, and industry co-funding.
• University Transformation
  • Convert universities into research-intensive institutions:
  • More PhD fellowships, tenure-track research chairs, core labs, shared facilities.
  • Mandatory industry-sponsored centres, co-incubators, IP-sharing frameworks.
• Strengthen IP Culture
  • Simpler filing, faster examination, commercialisation incentives, revenue-sharing for inventors; robust enforcement.
• Talent Strategy
  • Global-standard grants, return fellowships, young-PI schemes, and lab-to-startup pathways.
• Procurement & Demand-Pull Tools
  • Innovation-linked public procurement, sandboxing, advance market commitments in priority sectors.
• Governance & Delivery
  • Cut approval lags, adopt single-window digital grant management, transparent dashboards.

Strategic Payoffs of Reform

• Technological self-reliance, stronger industrial complexity, higher-value exports.
• Creation of deep-tech startups, high-skill employment, and competitive manufacturing ecosystems.
• Alignment with Viksit Bharat 2047 through productivity-led growth rather than factor-driven expansion.

Way Forward

• Set legally-anchored GERD targets with annual glide-path.
• Incentivise corporate R&D consortia in priority technologies.
• Build national tech-transfer network linking labs, startups, and industry.
• Monitor outcomes via patent quality, commercialisation rate, export tech intensity, not volume alone.