Archive · 23 Sep 2025
India Needs More R&D Investment to Boost Tech Innovation
India's tech sector needs more money for research and development.
Right now, companies in India spend very little on creating new technology, especially compared to countries like China.
This means they depend on others for important tech.
This is a problem, because technology is getting super important.
More R&D is needed to create new products and be able to compete globally.
Some companies are investing, but most are not, and India's scientists can create new technologies if provided with enough funds.
Indian IT companies face challenges due to low innovation and R&D spending.
Indian companies spend a fraction of revenue on R&D compared to global competitors.
India's R&D spending is significantly less than China's as a percentage of GDP.
A large portion of Indian companies do not invest in research and development.
Without innovation, Indian firms will struggle to compete globally.
- Who
- Indian IT companies, Indian firms, and global competitors.
- What
- Low investment in Research & Development (R&D) and its impact on innovation and competitiveness.
- When
- Ongoing, with data from FY19 to FY23 and comparisons to 2024.
- Where
- India, with comparisons to China and the USA.
- Why
- To enhance global competitiveness, achieve technological self-reliance, and foster innovation.
- R&D Spending in India
- Around 0.7% of GDP historically; 0.44% of turnover for 912 companies in FY23
- R&D Spending by China
- 2.68% of GDP in 2024
- Frontier Tech Readiness Ranking
- India ranked 36th in 2024, up from 48th in 2022
- Key Sectors with R&D Spending
- Pharma (Alembic Pharma, Dr. Reddy's Labs, Lupin), Tata Motors, Hindustan Aeronautics, Biocon, Bharat Electronics
- Companies spending on R&D
- Only 472 of 842 private sector companies spent on R&D in the sample group.
