Research and Development (R&D) in India

According to the:

• Global Innovation Index 2025

India’s:

• Gross Expenditure on Research and Development (GERD) is about 0.65% of GDP

This is lower compared to:

• USA (~3.5%)

• China (~2.4%)

• Republic of Korea (~4.5%)

The report also highlights that India has:

• 262 Full-Time Equivalent (FTE) researchers per million population

Compared to:

• USA: 4,821

• China: 1,585

What is GERD?

GERD (Gross Expenditure on Research and Development) measures:

• Total spending on R&D activities in a country

• Includes expenditure by:

  • Government

  • Private sector

  • Universities

  • Research institutions

It is considered an important indicator of:

• Innovation capability

• Scientific advancement

• Technological competitiveness

Key Challenges in India’s R&D Ecosystem

1. Inadequate R&D Funding

India’s R&D spending remains low.

Major concern:

Around 64% of R&D funding comes from the government, whereas in advanced economies:

• Private sector contributes nearly 60% or more.

Impact:

• Limited innovation ecosystem

• Weak industry-academia collaboration

• Reduced global competitiveness

2. Attracting and Retaining Researchers

Issues:

• Delays in scholarship and fellowship disbursal

• Limited incentives for commercialization of patents and innovations

• Brain drain to foreign universities and industries

Impact:

• Reduced motivation among researchers

• Loss of skilled talent

3. Weak Technology Translation and Commercialization

Many research institutions focus mainly on:

• Publications

• Academic research

But lack mechanisms to convert innovations into:

• Marketable products

• Startups

• Industrial applications

Example:

• Only a few Council of Scientific and Industrial Research labs have:

  • Independent Business Divisions (IBDs)

4. Weak R&D in State Universities

Problems:

• Poor infrastructure

• Limited research grants

• Heavy affiliation-related administrative burden on faculty

Result:

• Less time for quality research and innovation

Key Recommendations

1. Increase GERD to 2% of GDP

Recommendation:

• Raise R&D expenditure to at least 2% of GDP within 4–5 years.

Benefits:

• Stronger innovation ecosystem

• Improved technological self-reliance

• Better global competitiveness

2. Create “Vigyan Nidhi”

A unified fellowship system proposed to:

• Ensure timely scholarship disbursal

• Simplify funding mechanisms

• Support young researchers

3. Establish State-level RDI Clusters

Integrate:

• Higher Educational Institutions (HEIs)

• R&D institutions

• MSMEs

• PSUs

• Industry

Objective:

• Promote innovation ecosystems at regional level

• Improve industry-academia collaboration

4. Establish National Institute for Science Policy and Governance (NISPG)

Suggested on the lines of:

• STEPI (South Korea)

• NISTEP (Japan)

Purpose:

• Bridge policy and implementation gaps

• Improve monitoring and governance of science policy

Importance of Strong R&D Ecosystem

A robust R&D ecosystem helps in:

• Technological sovereignty

• Economic growth

• Startup development

• Defence innovation

• Industrial competitiveness

• Employment generation

It is also essential for achieving:

• Atmanirbhar Bharat

• Knowledge-based economy

• Digital transformation

Conclusion

India has made progress in:

• Innovation

• Startups

• Scientific capabilities

However, low R&D expenditure, limited private participation, and weak commercialization continue to constrain growth.

Increasing investment, improving institutional support, and strengthening industry-academia collaboration are critical for transforming India into a global innovation leader.