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Private Industry Lifts India’s R&D Spending as Research Intensity Reaches 0.84%

New national statistics show private industry approaching the government’s share of research expenditure, while higher researcher participation, publications and patent filings expand the country’s innovation base

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Key Details

The latest statistics from Department of Science and Technology's Research and Development Statistics at a Glance 2025–26 show a shift in both the scale and composition of India’s research expenditure. Private industry’s share has risen sharply, although the government remains the largest combined contributor and total R&D spending remains below 1% of GDP.

Indicator

Latest Position

What It Shows

R&D Expenditure

₹2,44,767.81 crore in 2023–24, up from ₹79,355.89 crore in 2013–14

National research expenditure more than tripled in nominal terms over the decade.

Research Intensity

0.84% of GDP in 2023–24, compared with 0.64% in 2020–21

R&D spending grew faster than GDP, but remains below 1% of national output.

Private Industry

Share of GERD increased from 32.2% to 45.2%between 2020–21 and 2023–24

Industry is approaching the combined government sector’s 48.2% share.

Leading Industries

Transportation accounted for 32.6% of industrial R&D, followed by pharmaceuticals at 21.4%

Business R&D is concentrated in a limited number of technology-intensive sectors.

Researchers

5.07 lakh full-time-equivalent researchers, or 354 per million people

Researcher density increased from 262 per million in 2020–21.

Women Researchers

Women represented 29% of researchers, up from 18.6% in 2020–21

Participation improved substantially but remained uneven across sectors.

Research Publications

2,07,390 publications in 2022; third-largest output globally

Publication volume more than doubled over the decade, based on the cited NSF database.

Patent Applications

1,10,375 applications in 2024–25, with residents filing 62%

Domestic applicants now account for most filings at the Indian Patent Office.

Survey Participation

4,912 institutions responded from more than 8,000 identified R&D-performing institutions

The estimates combine survey responses with validated secondary information.


Research Spending Has Reached A New High

The Department of Science and Technology's Research and Development Statistics at a Glance 2025–26 shows that Gross Expenditure on R&D (GERD) has more than tripled over the past decade.

Key milestones include:

  • ₹79,356 crore (2013–14)

  • ₹2.45 lakh crore (2023–24)

  • 0.84% of GDP in 2023–24 — the highest measured level reported in the publication

  • 0.90% of GDP projected for 2025–26

The report notes that figures beyond 2023–24 are estimates, not audited expenditure.


Private Industry Is Reshaping the Funding Mix

The most significant structural change is the rapid rise in private-sector R&D.

In 2023–24:

  • Private industry: 45.2%

  • Combined government sector: 48.2%

Industrial R&D remains concentrated in transportation, pharmaceuticals, biotechnology, IT and electronics, while multinational companies account for over 70% of business R&D expenditure.


Research Capacity and Innovation Continue to Expand

India's research ecosystem continues to grow across multiple indicators.

  • 5.07 lakh full-time-equivalent researchers

  • 29% women researchers

  • 3rd globally in scientific publications

  • 62% of patent applications filed by Indian residents in 2024–25


India Still Trails Leading Research Economies

Despite sustained growth, India's R&D intensity (0.84% of GDP) remains below China (2.58%), Brazil (1.19%) and Russia (0.94%).

The report also notes that extramural competitive research funding accounts for only 1.4% of GERD, indicating continued scope to strengthen research funding beyond government laboratories.


What Is GERD?

Gross Expenditure on Research and Development, or GERD, measures the total expenditure on R&D performed within a country during a specified period. It includes spending by government institutions, universities, public and private companies and eligible research organisations, irrespective of the original source of funds.


Policy Relevance

  • The funding structure is becoming more balanced: Private industry’s rise to 45.2% reduces the historical concentration of research expenditure within government institutions and expands the role of firms in determining research priorities.

  • Business R&D remains sectorally concentrated: Transportation and pharmaceuticals together account for more than half of industrial expenditure, indicating stronger research depth in selected industries than across the wider production economy.

  • Multinational concentration shapes domestic innovation capacity: The 71.3% MNC share shows the importance of large Indian and foreign companies, while raising the question of how research undertaken by these firms connects with domestic suppliers, universities and commercialisation within India.

  • Research intensity remains the principal international gap: Higher nominal expenditure and faster recent growth have not yet brought R&D spending to 1% of GDP or close to the levels reported by major research-intensive economies.

  • Researcher density affects the ability to absorb additional funding: Increasing expenditure sustainably requires a larger pipeline of trained researchers, technical personnel and research managers across industry, government and higher education.

  • Gender gains are unevenly distributed: Women’s overall share has increased, but lower representation in private industry shows that participation in commercially oriented R&D has not advanced at the same pace.

  • Output volume does not by itself measure research impact: Publication and patent counts need to be read alongside citation influence, patent use, technology transfer, commercialisation and contribution to public priorities.

  • Survey participation affects statistical completeness: Strengthening institutional reporting would improve the accuracy of sectoral estimates and allow changes in national R&D expenditure to be interpreted with greater confidence.


Follow The Full Publication Here: Research and Development Statistics at a Glance 2025–26

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