{"id":76658,"date":"2026-06-12T18:26:14","date_gmt":"2026-06-12T12:56:14","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=76658"},"modified":"2026-06-12T18:28:18","modified_gmt":"2026-06-12T12:58:18","slug":"rd-spending-india","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/12-06-2026\/rd-spending-india","title":{"rendered":"R&amp;D Underspending in India\u00a0"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Science and Technology<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India&#8217;s low spending on Research &amp; Development (R&amp;D) is not due to a single factor; it is the outcome of<strong> systemic, historical, financial, and cultural factors interacting with each other.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Reasons for Low R&amp;D Spending<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Large Domestic Market and Limited Competitive Pressure: <\/strong>India&#8217;s vast domestic market allows firms to grow without facing intense global competition. This reduces incentives to invest in risky and expensive frontier innovation.<\/li>\n\n\n\n<li><strong>Historical Legacy of Colonial De-industrialisation: <\/strong>Colonial policies weakened indigenous manufacturing capabilities and encouraged a trading-oriented business culture. This historical trajectory reduced emphasis on innovation-driven manufacturing.<\/li>\n\n\n\n<li><strong>Premature Financialisation of Corporate Sector: <\/strong>Many firms prioritize short-term financial returns over long-term investments such as R&amp;D. Pressure from shareholders and focus on quarterly performance discourage innovation spending.<\/li>\n\n\n\n<li><strong>High Uncertainty and Risk Aversion: <\/strong>Long-gestation R&amp;D projects face uncertainty regarding regulations, markets, and returns. Businesses therefore apply high discount rates to future gains and prefer safer investments.<\/li>\n\n\n\n<li><strong>Weak Industry Participation: <\/strong>India&#8217;s GERD remains around 0.6\u20130.7% of GDP, with private-sector contribution significantly lower than in major innovation-driven economies.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>R&amp;D Expenditure in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India\u2019s Gross Expenditure on Research and Development (GERD) as a percentage of GDP remained between <strong>0.6% to 0.7% <\/strong>which is <strong>below the global average<\/strong> and lower than countries <strong>like China, South Korea and the US.\u00a0<\/strong><\/li>\n\n\n\n<li>Another factor contributing to this is the <strong>relatively low investment by India\u2019s private sector<\/strong>, accounting for <strong>only around 36%,<\/strong> whereas in the aforementioned countries, <strong>private sector contributions are more than 70%<\/strong>.<\/li>\n\n\n\n<li>The Central Government contributes <strong>43.7% of total R&amp;D expenditure.<\/strong><\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"c9cae2\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"497\" height=\"497\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/06\/image-88.png\" alt=\"r&amp;d expenditure in india\" class=\"not-transparent wp-image-76660\" style=\"--dominant-color: #c9cae2; width:431px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/06\/image-88.png 497w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/06\/image-88-300x300.png 300w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/06\/image-88-150x150.png 150w\" sizes=\"auto, (max-width: 497px) 100vw, 497px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Need for Funding in R&amp;D<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Economic Growth<\/strong>: Drives new industries, improves productivity, and enhances global competitiveness.<\/li>\n\n\n\n<li><strong>Technological Advancement<\/strong>: Facilitates breakthroughs in fields like AI, biotechnology, and renewable energy.<\/li>\n\n\n\n<li><strong>Social Challenges<\/strong>: Helps address poverty, healthcare, education, and environmental sustainability issues.<\/li>\n\n\n\n<li><strong>Job Creation<\/strong>: Innovation generates employment opportunities and stimulates entrepreneurship.<\/li>\n\n\n\n<li><strong>Global Positioning<\/strong>: Positions India as a global leader in science, technology, and knowledge.<\/li>\n\n\n\n<li><strong>Attracts Investment<\/strong>: Promotes foreign and domestic investments in research-driven sectors.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Government Initiatives<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Research, Development and Innovation (RDI) Scheme: <\/strong>Approved with a \u20b91 lakh crore corpus, this scheme aims to energise private-sector R&amp;D and deep-tech startups.\n<ul class=\"wp-block-list\">\n<li>It offers long-term, low- or zero-interest loans, equity investments, and funds a new Deep-Tech Fund of Funds via the Anusandhan National Research Foundation (ANRF).<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Anusandhan National Research Foundation (ANRF): <\/strong>The ANRF established in 2023, provides high-level strategic direction for research, innovation, and entrepreneurship in science and technology.\n<ul class=\"wp-block-list\">\n<li>The Foundation aims to mobilise funds amounting to \u20b950,000 crore during 2023\u201328 through multiple streams, including the ANRF Fund, Innovation Fund, Science and Engineering Research Fund, and Special Purpose Funds.\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>National Geospatial Policy, 2022: <\/strong>It seeks to position India as a global leader in the geospatial sector by 2035.\n<ul class=\"wp-block-list\">\n<li>The policy liberalises access to geospatial data, encouraging its use in governance, business, and research.\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Indian Space Policy, 2023: <\/strong>It builds on the space reforms introduced in 2020, which opened the domain to non-governmental entities for end-to-end participation.\n<ul class=\"wp-block-list\">\n<li>It aims to enhance space capabilities, promote a flourishing commercial space industry, and foster collaboration between public and private entities.\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>National Quantum Mission: <\/strong>Allocated \u20b96,003.65 crore for 2023\u201331, to advance quantum technologies through scientific and industrial R&amp;D.<\/li>\n\n\n\n<li><strong>BioE3 Policy, 2024:<\/strong> It encourages the creation of Biomanufacturing and Bio-AI hubs, along with a national Biofoundry network, to accelerate technology development and commercialisation.<\/li>\n\n\n\n<li><strong>National Supercomputing Mission (NSM): <\/strong>Launched in 2015, the initiative empowers universities, research institutions, and government agencies with state-of-the-art supercomputing systems connected through the National Knowledge Network.<\/li>\n\n\n\n<li><strong>India Semiconductor Mission (ISM): <\/strong>Established in 2021, the mission seeks to build a robust ecosystem for semiconductor and display manufacturing.\n<ul class=\"wp-block-list\">\n<li>India has already approved 10 semiconductor projects across six states, including the first commercial Silicon Carbide fabrication facility in Odisha.\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>India AI Mission: <\/strong>The IndiaAI Mission embodies the vision of \u201cMaking AI in India and Making AI Work for India.\u201d\n<ul class=\"wp-block-list\">\n<li>It is advancing rapidly, having already increased computing capacity from an initial target of 10,000 GPUs to 38,000 GPUs, ensuring accessible AI infrastructure for startups, researchers, and industries.\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Atal Innovation Mission (AIM): <\/strong>To foster innovation at the grassroots level by providing support to students, startups, and entrepreneurs.\u00a0<\/li>\n\n\n\n<li><strong>The National Mission on High-Yielding Seeds <\/strong>will focus on strengthening the research ecosystem and developing high-yielding, pest-resistant, and climate-resilient seeds, aligning with DBT\u2019s efforts in agricultural biotechnology.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: IE<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong> Context <\/strong><\/p>\n<li class=\"ms-5\"> India&#8217;s low spending on Research \\&#038; Development (R\\&#038;D) is not due to a single factor; it is the outcome of systemic, historical, financial, and cultural factors interacting with each other. <\/li>\n<p><\/p>\n<p><strong> Reasons for Low R\\&#038;D Spending <\/strong><\/p>\n<li class=\"ms-5\"> Large Domestic Market and Limited Competitive Pressure: India&#8217;s vast domestic market allows firms to grow without facing intense global competition. This reduces incentives to invest in risky and expensive frontier innovation. <\/li>\n<li class=\"ms-5\"> Historical Legacy of Colonial De-industrialisation: Colonial policies weakened indigenous manufacturing capabilities and encouraged a trading-oriented business culture. This historical trajectory reduced emphasis on innovation-driven manufacturing. <\/li>\n<p><a href=\" https:\/\/www.nextias.com\/ca\/current-affairs\/12-06-2026\/rd-spending-india \" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-76658","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/76658","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=76658"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/76658\/revisions"}],"predecessor-version":[{"id":76664,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/76658\/revisions\/76664"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=76658"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=76658"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=76658"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}