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Trends in India's Research and Development Expenditure

3 entries over 8 days, from 30 July 2026 to 6 August 2026.

01
30 July

India's R&D spending trends

  • India's Gross Expenditure on Research and Development (GERD) reached 0.83% of GDP in 2021-22, crossing the 0.8% threshold for the first time since 2009-10.
  • GERD in absolute terms rose from ₹1.27 lakh crore in 2020-21 to ₹2.45 lakh crore in 2023-24.
  • A structural shift has occurred: private industry contribution to GERD rose from 36.4% in 2020-21 to 51.8% in 2023-24, surpassing government spending for the first time.
  • Industry R&D spending in absolute terms increased from ₹46,400 crore in 2020-21 to ₹126,800 crore in 2023-24.
  • Government science spending (DST, DBT, DAE, ISRO) has shown only incremental growth, suggesting the surge in GERD is primarily private-sector driven.
  • The Department of Science and Technology (DST) compiles data via the National Science and Technology Management Information System (NSTMIS).
  • The 2022-23 NSTMIS survey expanded its scope to include multinational companies and enterprises outside the Department of Scientific and Industrial Research (DSIR) recognition scheme.
  • India's R&D-to-GDP ratio remains lower than major scientific powers like China (2.4%), Japan (3.3%), South Korea (4.8%), and the US (3.5%).
02
5 August

Research investment trends in India

  • India's R&D expenditure reached 0.83% of GDP in 2021-22, crossing the 0.8% threshold for the first time since 2009-10.
  • Projected R&D expenditure is expected to approach 0.9% of GDP by 2025-26.
  • Structural shift: Private industry contribution to national R&D spending rose from 45.5% in 2021-22 to 51.8% in 2023-24, surpassing government spending.
  • Top industrial R&D contributors in 2023-24: Transportation (₹39,137 cr), Pharmaceuticals (₹25,847 cr), Biotechnology (₹10,321 cr), IT (₹9,587 cr), and Electrical/Electronics (₹6,779 cr).
  • Concentration of investment: 90% of private R&D investment comes from approximately 500 companies out of 8,000 in the DST database.
  • Workforce shift: Private industry now employs more full-time equivalent (FTE) R&D personnel than the public sector, reversing the trend observed in 2017-18.
  • Drivers of growth: Post-COVID realization of the criticality of R&D for future competitiveness and stricter RBI requirements for transparent R&D disclosure.
  • Data source: Department of Science and Technology (DST) Research and Development Statistics 2025-26.
03
6 August

DST report on private-sector R&D investment

  • DST Research and Development Statistics 2025-26 indicates a structural shift in India's innovation landscape.
  • India's R&D expenditure reached 0.83% of GDP in 2021-22, crossing the 0.8% threshold for the first time since 2009-10.
  • R&D expenditure is projected to approach 0.9% of GDP by 2025-26.
  • Private industry contribution to national R&D spending rose from 45.5% in 2021-22 to 51.8% in 2023-24, surpassing government spending.
  • Top R&D investing sectors in 2023-24: Transportation (₹39,137 crore), Pharmaceuticals (₹25,847 crore), Biotechnology (₹10,321 crore), IT (₹9,587 crore), and Electrical/Electronics (₹6,779 crore).
  • Private industry now employs more full-time equivalent (FTE) R&D personnel than the public sector, reversing the trend observed in 2017-18.
  • Concentration of investment: 90% of private R&D spending is generated by approximately 500 companies out of 8,000 in the DST database.
  • Drivers of growth include post-COVID realization of R&D criticality and stricter RBI requirements for transparent R&D disclosure.

Questions from this story

Newest first. A story that ran for 8 days is exactly the kind the mains paper asks about as one question.

  1. Analyze the structural shift in India's research and development landscape as highlighted by the recent DST report. What are the implications of the private sector emerging as the primary driver of R&D investment? 150 words · 6 August
  2. The transition of the private sector to the lead role in India's R&D ecosystem marks a significant departure from historical trends. Discuss the factors contributing to this shift and evaluate the role of policy interventions in fostering an innovation-led economy. 250 words · 6 August
  3. Analyze the structural shift in India's research and development landscape, highlighting the increasing role of the private sector in driving innovation. 150 words · 5 August
  4. Discuss the factors contributing to the rise in private sector R&D expenditure in India. How does this shift impact the nation's goal of achieving a knowledge-based economy? 250 words · 5 August
  5. Analyze the significance of the shift in India's R&D landscape where private industry contribution has surpassed public expenditure. What are the implications for India's innovation ecosystem? 150 words · 30 July
  6. Despite having a large scientific workforce, India's R&D-to-GDP ratio has historically trailed behind major global economies. Discuss the structural challenges in India's research ecosystem and the role of private sector participation in bridging this gap. 250 words · 30 July