The Call for Increased R&D Investment

The Economic Survey has highlighted a critical need for the private sector in India to ramp up its investment in Research and Development (R&D). This push is aimed at fostering innovation and driving growth across the economy. Currently, the majority of R&D funding in India comes from government entities, a stark contrast to many developed and emerging economies where business enterprises contribute more than 50% to the Gross Expenditure on R&D (GERD).

Current R&D Landscape in India

From FY11 to FY21, India's GERD has seen a significant increase from Rs 60,196 crore to approximately Rs 127,381 crore. Despite this growth, R&D expenditure still only accounts for 0.6% of the GDP, a figure that remains insufficient and significantly lower compared to many countries that have advanced in R&D.

Government Efforts and the Need for Private Sector Contribution

While government R&D policies and interventions have been making sustained efforts, the survey underscores the necessity for more substantial contributions from the private sector. The gap in R&D remains significant across major sectors, highlighting the urgent need for a balanced approach to funding and innovation.

Looking Ahead

As India continues to strive for economic growth and technological advancement, the role of the private sector in R&D cannot be overstated. Increased investment from businesses will be crucial in bridging the current gap and propelling India to the forefront of global innovation.