Quantum shift: on private industry and national research spending
India's private sector has overtaken government spending in national research and development for the first time, accounting for over 50% of total investment. While officials cite a post-pandemic focus on competitiveness, analysts suggest the surge may be partially attributed to improved reporting standards and mandatory sustainability disclosures.
The Department of Science and Technology’s latest figures on India’s research profile record a milestone. In 2023-24, private industry accounted for 51.8% of national research spending — a first in India’s history — overtaking all tiers of government combined for the first time. Moreover, industry now employs more core researchers than government institutions. Transport firms are the largest corporate investors, followed by pharmaceuticals, biotechnology and information technology (IT). The break from the past is sharp. Through the 2010s, private industry contributed a little over a third of national R&D, and the ratio moved slowly. Then, between 2020-21 and 2021-22, private spending nearly doubled — from ₹46,388 crore to ₹82,975 crore — and total R&D jumped from ₹1.27 lakh crore to ₹1.95 lakh crore in a single year. R&D spends in the transport sector, which barely registered before 2020, has roughly tripled and leads the triumvirate that includes biotechnology and IT that are counted among India’s most research-intensive industries.
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