NEW DELHI: India is facing a significant gap in research and development (R&D) across key sectors, with a strong need for greater private sector involvement, according to the Economic Survey 2025, released on Friday. The survey highlights that while R&D spending in India has shown growth, it still lags behind global standards.
The gross expenditure on R&D (GERD) in India has risen from approximately ₹60,196 crore in FY11 to ₹127,381 crore in FY21-22. However, this still represents only 0.64% of the country’s GDP—significantly lower than in many other nations that have made substantial advancements in R&D.
In contrast, developed and emerging economies like China, Japan, South Korea, and the US see private enterprises contributing over 50% of their total R&D expenditure. In the US, tech giants such as Google and Amazon alone account for around 70% of the nation’s R&D spending. Meanwhile, China’s R&D investment, which stands at 2.1% of its GDP, is driven by a combination of substantial government funding and increasing private sector participation.