Business News | Private Sector Leads India's R&D Spending for First Time as Total Investment Reaches Rs 2.45 Lakh Crore in FY24

New Delhi [India], July 31 (ANI): India's gross expenditure on research and development (GERD) rose to a record Rs 2.45 lakh crore in 2023-24, while R&D spending as a share of GDP increased marginally to 0.84 per cent, according to the latest government data tabled in the Rajya Sabha.

Replying to an unstarred question, Minister of State (Independent Charge) for Science and Technology Jitendra Singh shared the latest Research & Development Statistics.

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The data showed that India's GERD increased to Rs 2.45 lakh crore in 2023-24 from Rs 2.13 lakh crore a year earlier. During the same period, R&D expenditure as a share of GDP rose to 0.84 per cent from 0.82 per cent.

Private sector investment in research continued to outpace government spending. Private sector R&D expenditure increased to Rs 1.27 lakh crore in 2023-24 from Rs 1.02 lakh crore in the previous year, while government sector spending rose to Rs 1.18 lakh crore from Rs 1.11 lakh crore.

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The latest figures come as India seeks to strengthen its innovation ecosystem and expand advanced manufacturing in sectors such as semiconductors, electronics, biotechnology and deep technology. However, despite the rise in absolute spending, India's R&D expenditure remains below 1 per cent of GDP.

However, on many occasions, NITI Aayog has noted that India's GERD has remained significantly lower than countries such as China (2.6 per cent), the United States (3.4 per cent) and South Korea (5.3 per cent), and has recommended reforms to boost research funding and private-sector participation.

Recently, Member of NITI Aayog Rajiv Gauba, while addressing a gathering at the CII Annual Business Summit 2026, stressed that the Indian industry must significantly increase its R&D contributions and move away from a reliance on imported technology.

On India's innovation performance, the government said the country has improved its standing in the Global Innovation Index (GII), with its ranking rising from 46th in 2021 to 38th in 2025. The reply added that India is the top-performing economy in both Central and Southern Asia and among lower-middle-income countries, while continuing to perform better in innovation outputs than innovation inputs. (ANI)

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