Private R&D spending surpasses government spending for first time in FY24
India's Gross Expenditure on Research and Development (GERD) reached 0.83% of GDP in 2021-22, the highest since 2009-10. A significant structural shift is observed, with private industry's contribution to national R&D spending surpassing government spending for the first time, reaching 51.8% in 2023-24. This marks a substantial increase from 36.4% in 2020-21. The total GERD surged from ₹1.27 lakh crore in 2020-21 to ₹2.45 lakh crore in 2023-24. This data, disclosed by the Department of Science and Technology, highlights a growing role for the private sector in India's innovation ecosystem, aligning with trends in advanced economies where businesses typically account for over 70% of research expenditure.
Key Points
- India's Gross Expenditure on Research and Development (GERD) reached 0.83% of GDP in 2021-22, highest since 2009-10.
- Private industry's share of national R&D spending exceeded government spending for the first time in FY24, reaching 51.8%.
- Total GERD nearly doubled from ₹1.27 lakh crore in 2020-21 to ₹2.45 lakh crore in 2023-24.
- This shift indicates a maturing innovation ecosystem, with the private sector playing a more dominant role in research.
Exam Facts
- GERD in 2021-22: 0.83% of GDP.
- Private industry share in 2023-24: 51.8%.
- Total GERD in 2023-24: ₹2.45 lakh crore.
- Data source: Department of Science and Technology (DST) through its National Science and Technology Management Information System (NSTMIS).
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