India's gross expenditure on research and development (GERD) demonstrated significant growth, rising 85% from ₹1.33 trillion in 2019-20 to ₹2.45 trillion in 2023-24. However, according to government data presented to the Lok Sabha, the share of GDP increased only from 0.66% to 0.84%, falling short of India's aspiration to reach 2% by 2035. This growth trajectory reflects the country's expanding research investment but highlights the need for acceleration to meet long-term targets.
The composition of R&D spending underwent a fundamental shift during this period. Private industry's share increased from 33.8% to 51.8%, while the government's contribution fell from 66.2% to 48.2% between 2019-20 and 2023-24. In rupee terms, private-sector R&D spending surged from ₹44,754 crore to ₹1.18 trillion, representing a compound annual growth rate of 27.52%. This marks the first time private capital funded the majority of India's research activities.
India continues to trail most BRICS peers in R&D investment intensity. China spent 2.69% of GDP on R&D in 2024, while Brazil allocated 1.19% in 2023 and Russia around 0.94% in 2024. South Africa recorded 0.61% in 2022 and Vietnam 0.41% in 2023, all exceeding India's current 0.84% share. This international comparison underscores the gap between India's research ambitions and its current investment levels.
The higher education sector emerged as the fastest-growing segment, recording 32.79% growth from ₹9,942 crore in 2019-20 to ₹30,909 crore in 2023-24. Despite this strong performance, its share of national R&D spending remained modest at 12.6% in 2023-24. State governments continue to account for only about 4% of national R&D spending, growing at a modest CAGR of 3.4% between 2019-20 and 2023-24. Central sector expenditure increased at a CAGR of 5.45%, rising from ₹69,317 crore to ₹85,712 crore during the same period.
