In Brief
- India's R&D spending surpassed 0.8% of GDP in 2023-24, first since 2009-10.
- Private industry funded 51.8% of national R&D in 2023-24, surpassing government contributions.
- Private sector contribution rose from 45.5% in 2021-22 to 51.8% in 2023-24.
- This marks a structural shift with businesses now leading India's research funding.
India's expenditure on research and development (R&D) crossed 0.8% of the gross domestic product (GDP) in the fiscal year 2023-24, the highest level since 2009-10, according to official government data. As per “Research & Development Statistics 2025-26” report of Department of Science and Technology (DST), the gross expenditure on research and development (GERD) in the country has shown increasing trend. This milestone reflects a significant increase in national investment towards innovation and scientific development.
A notable change in the composition of R&D funding was observed, with private industry accounting for 51.8% of the total spend in 2023-24. This is the first time business contributions have exceeded those from all levels of government combined. In 2021-22, private sector funding accounted for 45.5%, indicating a rising trend of corporate investment in research activities.
The increased participation of private industry suggests a structural shift in India’s research landscape. This aligns with government policies encouraging industry-led innovation to drive economic growth. The data points to enhanced collaboration between public and private sectors, boosting India's capabilities in technology and product development.
