India's Private-Sector Research and Development (R&D) Landscape
The Department of Science and Technology's (DST) Research and Development Statistics 2025-26 highlights the evolving landscape of India's private-sector R&D efforts.
Key Industries Driving R&D
- Transportation companies are the largest corporate R&D investors, spending ₹39,137 crore in 2023-24.
- Drugs and pharmaceuticals contributed ₹25,847 crore.
- Biotechnology invested ₹10,321 crore.
- Information technology spent ₹9,587 crore.
- Electrical and electronics contributed ₹6,779 crore.
- Together, these sectors account for the majority of private industrial research expenditure.
Shift in R&D Spending and Workforce
- India's R&D spending increased to 0.83% of GDP in 2021-22, projected to reach 0.9% by 2025-26.
- Private industry accounted for 45.5% of national R&D spending in 2021-22, increasing to 51.8% in 2023-24.
- Private industry employed more full-time equivalent (FTE) R&D personnel than government institutions in 2023-24.
Trends and Observations
- Transportation R&D has nearly tripled since the last data release in 2018-19.
- Biotechnology has emerged as a significant research-intensive industry.
- Information technology is now among the leading corporate R&D spenders.
- Post-COVID realizations about the importance of R&D have driven increased investments.
- RBI's stricter transparency requirements may have influenced R&D spending disclosures.
Research Intensity Across Industries
- Biotechnology firms spent 16.8% of their sales turnover on R&D, one of the highest among industrial sectors.
- Pharmaceuticals also ranked high in research intensity.
- Despite the largest absolute investment in R&D, transportation devoted a smaller share of turnover due to its large revenue base.
Conclusion
The report underscores a significant shift towards private-sector-driven research efforts in India, with increasing investments from key industries and a growing R&D workforce within business enterprises.
