India's gross expenditure on research and development (GERD) rose to a record ₹2.45 lakh crore in 2023-24, with the private sector overtaking the government as the country's largest investor in research for the first time, according to data tabled in the Rajya Sabha.
Replying to an unstarred question, Minister of State (Independent Charge) for Science and Technology Jitendra Singh said India's investment in research and development increased from ₹2.13 lakh crore in 2022-23 to ₹2.45 lakh crore in 2023-24.
The data also showed that R&D expenditure as a share of the country's Gross Domestic Product (GDP) rose marginally to 0.84 per cent from 0.82 per cent a year earlier.
Private sector investment accounted for the largest share of research spending during the year. Expenditure by private companies increased to ₹1.27 lakh crore in FY24 from ₹1.02 lakh crore in the previous year, surpassing government spending, which rose to ₹1.18 lakh crore from ₹1.11 lakh crore.
Also read: Global satellite industry: India to become crucial growth market
The figures come as India seeks to strengthen its innovation ecosystem and expand capabilities in strategic sectors such as semiconductors, electronics, biotechnology and deep technology.
Despite the record increase in overall spending, India's investment in research and development remains below 1 per cent of GDP, significantly lower than several major economies.
The government noted that NITI Aayog has previously highlighted the gap, pointing out that China's R&D expenditure stands at about 2.6 per cent of GDP, compared with 3.4 per cent in the United States and 5.3 per cent in South Korea. The policy think tank has recommended measures to increase research funding and encourage greater participation by the private sector.
Earlier this year, NITI Aayog member Rajiv Gauba, speaking at the CII Annual Business Summit 2026, urged Indian industry to substantially raise its investment in research and innovation while reducing dependence on imported technologies.
The government also highlighted India's improving innovation performance, noting that the country climbed from 46th place in 2021 to 38th in 2025 in the Global Innovation Index. It added that India remains the top-performing economy in Central and Southern Asia as well as among lower-middle-income countries, while continuing to perform better in innovation outputs than innovation inputs.
Follow us
