India’s R&D Expenditure Remains Stagnant As Fraction Of GDP, Centre Leads As Privates, States Lag Says GII Report

India’s investment in research and development (R&D) has continued to stagnate at between 0.6 per cent to 0.7 per cent of the GDP despite consistent increase in nominal spend, the Global Innovation Index (GII) released today (24 July) has revealed.

Indian spend in R&D as per cent of the GDP lags far behind other countries such as the US (2.8 per cent), China (2.1 per cent), Israel (4.3 per cent) and South Korea (4.2 per cent), that now are leaders in innovation across the world.

The investment that is being made has been mainly driven by the Central government, with privates and states found to be lagging. This is in contrast to the advanced countries where private sector is the dominant and driving force of R&D spend.

Government research is being driven by Central PSEs (CPSEs) with majority of the research being done by power and petroleum sector CPSEs. Seema Bahuguna, Secretary, Public Enterprises also informed that from the year 2014-15 to 2017-18 there has been an increase of 116 per cent in R&D spending by CPSEs.

However, she added that the need of hour is that all CPSEs must come on board for higher spend on R&D and not just CPSEs of the petroleum and power sector. 154 innovation cells have been setup by CPSEs towards the aim, she said.

Ratan Watal, Member Secretary PMEAC said that the growth in R&D expenditure should be commensurate with the growth of GDP and should reach at least two percent of GDP by 2022.