NITI Aayog Report on Public R&D Institutes in India: Driving Innovation through Multisectoral and Systemic Integration
SDG 9: Industry, Innovation, and Infrastructure | SDG 8: Decent Work and Economic Growth | SDG 4: Quality Education
NITI Aayog | Ministry of Science and Technology | Department of Science and Technology (DST)
The NITI Aayog working paper, “Public R&D Institutes in India: Opportunities for Multisectoral and Systemic Integration,” (2025) provides a diagnostic analysis of India’s research ecosystem, which comprises 1,815 public R&D institutes. The report highlights that while India’s Gross Expenditure on R&D (GERD) reached approximately Rs. 2 lakh crores in 2020-21 (an eightfold increase over two decades), it has remained stagnant as a percentage of GDP, consistently hovering around 0.6% to 0.7%.
Key Findings on the R&D Landscape:
Skewed Sectoral Distribution: Agriculture and Allied Sectors dominate the landscape, accounting for 51% (924 institutes) of the total public R&D infrastructure. In contrast, sectors like Education & Skilling (25 institutes) and Transportation (15 institutes) have significantly lower representation.
Geographical Imbalance: The Southern region holds the largest share of institutes (36%), followed by the West (23.3%) and North (13.2%). The Northeast region accounts for only 1.8% of the total institutes.
Centralization in NCR: A notable trend is the heavy concentration of Central R&D institutes in or around the National Capital Region (NCR) of Delhi, which hosts 72 Central Sector R&D institutes—more than all other Union Territories combined.
Disparity in Public vs. Private Funding: Unlike the top three global economies (China, USA, Germany), where the private sector contributes 67-77% of R&D expenditure, India’s R&D is primarily driven by the Government sector, which accounts for approximately three-fifths of total spending.
What is the Gross Expenditure on R&D (GERD)? GERD is the total amount spent on research and development within a country during a specific period. In India, the Central Government (43.7%) and Private Sector Industry (36.4%) were the primary drivers of GERD in 2020-21.
Policy Relevance
The report calls for a paradigm shift from just tracking investment to measuring real-world impact, aimed at making India a global hub for R&D by its centenary of independence in 2047.
Spatial Synergy and Industry Proximity: The report identifies a significant spatial mismatch between industrial clusters and their corresponding apex R&D institutes. For example, while IT hubs are located in Bengaluru and Hyderabad, the apex R&D institute for IT & Electronics is in New Delhi. Future planning must locate R&D facilities close to specialty industry clusters to facilitate better collaboration and innovation.
Breaking Institutional Silos: There is a critical need to integrate R&D institutes with Higher Education Institutions (HEIs) to prevent them from working in silos. This includes creating integrated career pathways that allow experts to move between teaching and cutting-edge research.
Frontier Technology Focus: Strategic planning is recommended for establishing new R&D institutes in high-potential sectors like Medical and Life Sciences, Renewable Energy, and Advanced Manufacturing (robotics, AI-ML, and semiconductors).
Impact Orientation: The paper recommends establishing a Central Coordinating Agency for R&D to monitor outputs and outcomes, ensuring that R&D efforts solve pressing national challenges and provide tangible societal benefits.
Follow the full report here: Public R&D Institutes in India: Driving Innovation through Multisectoral and Systemic Integration