A Fund Crunch in the US: A Scientific Opportunity for India

Syllabus: GS3/ Science and Technology

Context

• The United States, long hailed as the epicentre of scientific innovation and research, is currently witnessing a systematic erosion of its knowledge economy.

Crisis in the the USA

• Funding Freezes: The National Institutes of Health (NIH) and other US agencies have halted or cut funding for several international collaborative projects.
• Institutional Uncertainty: Universities are facing layoffs and lab shutdowns; tenure-track positions are being reduced.
• Migration of Scientists: Early-career researchers and even senior scientists are leaving the US for Europe, Asia, and Latin America.

Opportunity for Indian Diaspora 

• A Rich Talent Pool: India-born scientists make up a significant portion of the US STEM workforce, with many contributing to major breakthroughs and winning global science awards.
  • E.g. Lasker, Breakthrough, and even Nobel Prizes.
• Reversing Brain Drain: India must expand pathways for permanent relocation, lab creation, and institutional leadership roles.

Global Response to the Crisis

• France launched the “Safe Place for Science” programme at Aix-Marseille University, aimed at providing a secure and supportive environment for scientists, particularly those facing uncertainties in their professional careers.
• Germany and Switzerland are offering long-term fellowships and research grants targeting displaced or dissatisfied scientists.
• China is increasing funding under “Talent Return” schemes to lure overseas Chinese researchers.

Initiatives taken by India

• VAIBHAV (Vaishvik Bhartiya Vaigyanik) fellowships were launched to connect overseas Indian scientists with domestic institutions.
• The VAJRA (Visiting Advanced Joint Research) scheme is a fellowship program that offers short-term positions for overseas scientists, including Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs), to work in Indian research institutions.
  • The scheme aims to foster international collaboration and leverage the expertise of overseas researchers for India’s research and development ecosystem.
• Anusandhan National Research Foundation (ANRF) aims to seed, grow and promote research and development (R&D) and foster a culture of research and innovation throughout India’s universities, colleges, research institutions, and R&D laboratories. 
• Philanthropic Engagement: According to Indian Philanthropy Report 2025, private social sector funding reached ₹1.31 lakh crore in 2024.
  • Foundations like Tata Trusts, Infosys Foundation, and Wipro Foundation are increasingly supporting R&D efforts.

What are the challenges?

• Limited Research Infrastructure: Many institutions lack cutting-edge labs, interdisciplinary ecosystems, and research autonomy.
• Inadequate Start-up Grants: India’s research start-up funding usually lags behind what is offered in the US, EU, or China.
• Short-Term Vision: Existing programmes focus more on visiting roles than on long-term institutional integration.
• Bureaucratic Red Tape: Complex approval mechanisms, lack of flexibility in research agendas, and delayed fund disbursement discourage talent relocation.
• India spends only 0.65% of its GDP on R&D (as per NITI Aayog report), far below countries like China (2.4%) and the US (3.45%).

Concluding remarks

• The erosion of the US research ecosystem presents India with a historic opportunity to reposition itself as a global scientific powerhouse. 
• By investing in infrastructure, autonomy, and talent, and by embracing its global diaspora, India can catalyse a transformation from importing knowledge to exporting innovation.

Source: IE