Indian funding less in nanotech

By Our Correspondent

Chennai

July 22: Even as scientists and industrialists across the country agree that nanotechnology is the next big thing in technological innovation, India’s public expenditure on nanotechnology development is still as low as Rs 28 crore.

According to a study conducted by Assocham and Frost Sullivan, India’s annual expenditure of around $7 million on nanotechnology is very small compared to other countries.

India’s expenditure is way behind countries like US, Germany and France, which spend $1billion, $395.5 and $ 301.1 million annually on nanotechnology development.

With the Central government setting aside Rs 1,000 crore for the five-year ‘nano mission’, the industry can get the much-needed boost.

The setting up of three national level institutes for research and development in nanotechnology, in Bengaluru, Mohali and Kolkata will also help in technological innovation in this field.

The EU has also come forward to join hands with India to set up the ‘EU-India Co-ordinated Call for Proposals on Computational Materials Science,’ which receives a 5 million euros funding from EU and India.

However, for nanotechnology, the contribution of the private sector too has wanting. Mr Sajjan Jindal, president, Assocham points out that the contribution of the private sector in India is as low as 22 per cent.

has been as high as 67 per cent in Japan, 50 per cent in the US, and 36 per cent across emerging Asian countries out of the total expenditure on nanotechnology, in India it remains as low as 22 per cent.

While there is a dearth of venture capitalists and funds willing to invest in the products, the thrust on research and development has been lacking. For example, venture capitalist firms such as Morgan Stanley and ICICI Ventures have invested heavily on biotech products but have stayed away from the research and development in this sector.

The study has warned that such an approach would seriously limit the scope of the funding and create a vacuum in research, development and innovation in this sector.