India's R&D Spending

India's engineering research and development (ER&D) sector is projected to surpass USD 100 billion in revenue by 2030, driven by the integration of Artificial Intelligence (AI) into core engineering workflows, IT industry body Nasscom said on Tuesday. The sector, which is estimated to generate USD 63 billion in revenue in FY26, is witnessing a significant shift as engineering becomes increasingly software-defined, data-driven and intelligent. "Global ER&D spending is projected to reach USD 2.482.50 trillion by 2030, growing at a CAGR of 89 per cent between CY24 and CY30. With an estimated revenue of USD 63 billion in FY26, India's ER&D services revenue is projected to cross USD 100 billion by 2030. Technological disruption and a sharper focus on innovation and value are creating new areas of demand," Nasscom said. Nasscom's report, titled 'Physical AI Redefining ER&D opportunity for India', suggests that demand will evolve in three waves. The first wave will see the ..

India's R&D spending has hit a record 0.84% of GDP, but reaching the global technology frontier will require much higher private-sector investment and smarter public funding

Gross R&D spending rose to Rs 2.45 trillion in FY24, while private industry overtook the government as the largest contributor to research funding

India should significantly enhance its investment in research and development from the current level of 0.64 per cent to at least 2 per cent of GDP in the next four to five years to strengthen the country's R&D ecosystem, Niti Aayog said on Monday. The Aayog, in a report titled Ease of Doing Research & Development in India - Removing Obstacles, Promoting Enablers, said the government should consider restoring a 5 per cent GST slab for R&D procurement. "To strengthen India's R&D (research and development) ecosystem, there is an urgent need to significantly enhance the national investment in R&D, from the current level of 0.64 per cent to at least 2 per cent of GDP in the next four to five years," it noted. The report also suggested that India needs to introduce time-bound, incremental fiscal incentives to boost private sector investment in R&D. According to the report, adding the reporting head of R&D expenditure under Schedule III (Balance Sheet & ...

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Companies' R&D spending hit a decadal low in FY25 as most of them prioritised record shareholder payouts over critical technological innovation

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

Restoring weighted tax deductions and adopting a petty patents regime can foster firm-level innovative activity critical for competitiveness

Defence production led R&D expenditure by central public sector enterprises in FY25, followed by petroleum and heavy engineering, as overall spending rose sharply year-on-year

China's growth highlights the need for India to shift policy support towards new firms, boost manufacturing, R&D spending, and empower states and cities to drive entrepreneurship and competitiveness

India's new Rs 1 lakh crore RDI Fund aims to accelerate deep-tech innovation with long-term, low-interest capital, boosting private-sector research in frontier technologies

India must boost R&D spending and focus on market-oriented research to compete globally, as ISF honours six scientists with the Infosys Prize 2025, says K Dinesh

The government has rolled out a Rs 210-crore, three-year critical minerals research programme led by ANRF and the Ministry of Mines, restricted to nine Centres of Excellence

Rajnath Singh's ₹32,000-crore R&D push boosts defence PSUs, even as overall R&D spend among Nifty 100 firms stays low relative to revenue

Move follows Defence Minister Rajnath Singh's call for greater investment and manpower in R&D to develop new technologies and boost indigenisation and exports

For RDI to deliver fully, it must be backed by reforms in public procurement to actively support locally developed products

Union Minister Pralhad Joshi announced Rs 100 crore funding for green hydrogen R&D start-ups with up to Rs 5 crore per project, and launched a safety panel under NGHM

The RDI Scheme should fund firms with adequate absorptive capacity - but which firms and how will be key

Telecom operators urge the government to stop using DBN funds for R&D at IITs and demand clarity, equitable access, and industry participation under DBN Rules 2024

Today's opinion page takes a closer look at the RDI scheme, India's R&D lapses, the current account deficit, and whether the RBI's changes to project finance are a good idea in the long run