Rising private-sector R&D investment in electrical and electronics is strengthening India’s efforts to develop domestic technologies, components and semiconductor capabilities.
Electrical and electronics companies emerged as a significant contributor to India’s industrial R&D spending in 2023–24, with private-sector investment accounting for most of the research expenditure in the segment.
India’s electrical and electronics sector recorded around ₹7.1 billion in R&D expenditure in 2023–24, according to data from the National Science and Technology Management Information System (NSTMIS), Department of Science and Technology.
The sector’s R&D spending was predominantly driven by private companies, with the public sector accounting for only a small portion of the total. This highlights the growing role of industry in developing new electronic products, technologies and manufacturing capabilities.
Electrical and electronics was among the leading industrial groups in private-sector R&D spending during the year. The sector’s research activities span areas such as electronic components, equipment, embedded systems, communications technologies and other technology-intensive products.
The strong private-sector contribution is particularly relevant as India seeks to build a more self-reliant electronics and semiconductor ecosystem. Companies investing in R&D can develop proprietary technologies and products while reducing dependence on imported components and intellectual property.
The data also point to the importance of sustained industry-led R&D as India moves from electronics assembly towards higher-value manufacturing and technology development. For the semiconductor ecosystem, greater R&D investment could support indigenous chip design, electronic components, semiconductor equipment, advanced packaging and related technologies.
With the government also increasing its focus on domestic semiconductor and electronics capabilities, stronger private-sector R&D could help create technologies that can be commercialised at scale and compete in global markets.
The relatively high share of private-sector R&D in electrical and electronics indicates that companies are increasingly recognising research and product development as important drivers of competitiveness, rather than relying primarily on imported technologies and products.
