Higher education institutions trail as India's R&D spending doubles

Prime Minister Narendra Modi recently unveiled a ₹1 trillion fund to drive private sector innovation in research and development (R&D). With 65 per cent of its population below 35 years, the country has the potential to become a global innovation hub. India’s R&D expenditure has doubled from ₹60,197 crore in 2010-11 to ₹1.27 trillion in 2020-21. 

India has over 1,000 universities and 42,000 colleges, but quality research and innovation is still not up to the mark.

 

And higher education institutions’ contribution to the gross expenditure on research and development (GERD) has not crossed the 10 per cent threshold for over a decade now. In 2020-21, it was just 8.8 per cent of total R&D expenditure, a marginal rise from 5.49 per cent in 2010-11. The remaining shares are driven mainly by the government sector (including both Central and State governments) and business enterprises (including both public and private sector industries). 

 

Among states, Meghalaya accounts for the highest share at 57.5 per cent of total state spending on R&D in education for FY24, followed by Kerala at 46.28 per cent and Odisha at 44.91 per cent. Tamil Nadu has shown a significant jump from just 2.07 per cent in FY21 to 21.69 per cent in FY24, marking a ten-fold increase. The share of Punjab which was above 20 per cent in FY23, has dropped to 15.19 per cent in FY24. 

 

India and China significantly trail behind countries like Germany and Japan in higher education’s contribution to R&D spending, with India’s 8.8 per cent share being just half of Germany’s 19 per cent-- the highest among the top five global economies in 2020-21. While India remains marginally ahead of China at 8 per cent and the top global economy, US share at 11 per cent.  

India’s R&D budget as a percentage of GDP lags global average and most major economies. And it’s the government which is doing most of the heavy lifting here. In 2020-21, the share of government in total GERD was over 50 per cent, though its share has declined from 62.38 per cent in 2010-11. While the total share of business enterprises -- which includes both public and private sector industries -- stood at 40.8 per cent in 2020-21. 

 

R&D is crucial for driving innovation, enhancing quality and strengthening the global standing of Indian higher education institutions. By fostering a robust research and innovation ecosystem, higher education can better address socio-economic challenges, fuel economic progress and enrich the academic experience for faculty and students alike.

 

In this context, international research collaborations are vital for making Indian higher education more resilient, globally competitive and impactful. By connecting Indian researchers with global peers, these collaborations bring diverse perspectives, increase access to resources and funding, and raise the international profile of Indian research outputs.