By Sourav Shekhar
New Delhi, Jan 9 (UNI) Dr RG Agarwal, Chairman Emeritus, Dhanuka Agritech Limited, on Friday said that India often speaks about building a strong innovation ecosystem, but on the ground, spending on Research and Development remains at just 0.7 per cent.
In an interview with UNI, Agarwal said, he hoped that the government will give significant support to research and development in order to spur innovation and economic growth, especially in the fields of agriculture and agro-based industries.
"The current spending on research is much lower than the spending seen in countries like China, Israel, US and the European economy. If India wants to seriously compete at the global level and push scientific investment, then higher investment in R&D is unavoidable," Agarwal added.
" We hope the forthcoming budget renews meaningful support for R&D, covering both public institutions and industry," he said
Speaking of taxation in the agri industry, Agarwal said, " Pesticides should not be viewed as luxury goods; they are essentially plant medicines and provide a critical safety net for farmers. However, they currently attract 18 per cent GST that places them in non-essential items."
He said there was a need to rationalise taxes on pesticides and other inputs for farming to make the sector cost-effective. "Just as GST on essential human medicine was rationalised, we request a reduction in GST on pesticides to 5 per cent to ease the cost burden on farmers."
He said it is also important to recognise that some of the commitments made in previous budgets "are now moving into the implementation phase". Several other initiatives too are in progress, reflecting a positive intent on the part of the government.
"Going forward, the emphasis must be on execution and ensuring real, on-ground support for farmers," he added.
Echoing this, Ajay Kakra, leader of Food and Agriculture, GIDAS, Forvis Mazars in India, said, " Budget 2026 must move Indian agriculture beyond volume and subsidies toward quality, exports, innovation, and industry participation. Strategic investments across infrastructure, R&D, and large-scale programmes can position the sector as both globally competitive and domestically resilient."
Kakra said adopting innovation as the driver of agricultural growth, "is a significant step forward" and that Budget 2026 needs to place "emerging sources of funding in agri-R&D, start-ups and private sector innovation on a sound footing."
Last year's Budget allocated Rs 1.27 lakh crore to the Department of Agriculture and Farmers' Welfare, with a significant portion of the spending directed towards flagship schemes such as PM-KISAN, crop insurance and the interest subvention programme. These allocations underscore the government's continued focus on income support and risk mitigation for farmers.
However, despite sustained budgetary support, India's agriculture sector continues to face a shortage of advanced research and development infrastructure, limiting productivity gains and innovation on the ground. Addressing this gap, Indian Council of Agricultural Research (ICAR) Director General M.L. Jat said at a recent media summit that Indian agriculture must transition towards a more efficient, technology-driven, and market-ready model.
He emphasised the need to strengthen R&D capabilities and accelerate the adoption of modern technologies to make farming more resilient, competitive, and aligned with evolving market demands. UNI SAS JRC