India’s R&D expenditure has more than tripled over the past decade, but research intensity remains below 1 per cent of GDP, highlighting the gap between rising investment and research capacity.
India’s gross expenditure on research and development (GERD) has risen sharply over the past decade, reaching ₹2,447.68 billion in 2023–24 from ₹793.56 billion in 2013–14. However, R&D expenditure accounted for only 0.84 per cent of GDP in 2023–24, showing that research intensity has increased more gradually than overall spending.
According to the latest R&D statistics 2025–26 from the Department of Science and Technology (DST), GERD is estimated to rise to ₹2,761.96 billion in 2024–25 and ₹3,130.07 billion in 2025–26. R&D intensity is projected to reach 0.87 per cent and 0.90 per cent of GDP, respectively.
The data also point to a growing role for the private sector in India’s research ecosystem. Private-sector R&D expenditure accounted for 51.8 per cent of total spending in 2023–24, compared with 48.2 per cent for the government. Private-sector spending stood at around ₹1,270 billion, while government expenditure was about ₹1,180 billion.
Despite the increase, India’s R&D intensity remains below that of several major economies. India’s 0.84 per cent compares with 2.58 per cent in China, 3.45 per cent in the US and 4.94 per cent in South Korea.
The challenge, therefore, is not only to increase R&D spending but also to strengthen research institutions, expand the researcher base, improve university-industry collaboration and accelerate the commercialisation of research.
Government initiatives such as the Anusandhan National Research Foundation and the proposed ₹1000 billion Research, Development and Innovation fund aim to encourage greater private participation in research.
For semiconductors and electronics, sustained R&D investment will be critical as India seeks to move beyond assembly towards indigenous chip design, advanced packaging, semiconductor equipment and other high-value technologies. With R&D intensity projected to reach 0.90 per cent by 2025–26, the focus will increasingly shift from how much India spends on R&D to how effectively that investment creates globally competitive technologies.
