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NITI Aayog Recommends Reform In State S&T Council Funding Structure

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NITI Aayog Recommends Reform In State S&T Council Funding Structure
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Description

In 2025, NITI Aayog proposed a strategic overhaul of the Department of Science and Technology’s (DST) approach to funding State Science and Technology Councils. The key recommendation suggests transitioning from traditional core grants to a more dynamic, project-based funding model. This shift aims to improve effectiveness and address concerns over limited contributions from these councils to India's overall scientific output, as well as rectify uneven regional funding patterns.

Background: Purpose Of State S&T Councils

Established in the 1970s, State Science and Technology Councils were envisioned as instruments of decentralised science governance. Their purpose is to promote region-specific research aligned with state-level socio-economic priorities. These councils offer support for research projects, science popularisation, patent facilitation, and advising on policy. However, most of their operational budgets are modest and heavily reliant on DST's central support.

Funding Gaps And Regional Imbalances

Funding allocation varies significantly across states. For instance, while Gujarat’s council operates with a budget of Rupees 300 crore (receiving just Rupees 1.07 crore from DST), Kerala’s Rupees 150 crore budget relies entirely on state funds. The budgets for 2023–24 and 2024–25 show an overall increase of 17.65%, but many disparities remain. States like Kerala, Uttar Pradesh, and Haryana saw increases, while Tamil Nadu, Uttarakhand, and Sikkim faced cuts. Maharashtra’s budget notably doubled, underscoring the inconsistent focus across regions.

Performance And Structural Limitations

Despite their mandate, State S&T Councils have struggled to remain relevant in India’s fast-evolving research ecosystem. The bulk of scientific research still emerges from centrally funded institutions, while state-level councils remain underperforming. A significant challenge is their dependence on guaranteed core grants, with limited success in securing competitive, project-based funds from national agencies.

Key Recommendations By NITI Aayog

To improve impact and efficiency, the report recommends:

  • Shifting to project-based funding to ensure performance-based accountability.

  • Enhancing institutional governance and building stronger partnerships with local industries and PSUs.

  • Directing more funds to state universities, rather than only central institutes, to nurture grassroots research.

  • Encouraging inter-agency collaboration to bring synergy between central and state science initiatives.

Impact On National Science Ecosystem

These proposed reforms aim to strengthen regional scientific capacities while reducing disparities. A project-driven model could energise state-level innovation, aligning it more closely with real-world applications and community needs. Stronger ties with industries and state academia could further localise the benefits of science and technology, contributing to a more equitable and robust national innovation framework.


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