What is outcome of the NITI Aayog Study on India’s R&D expenditures?

July 23, 2022

As per NITI Aayog’s India Innovation Index 2021, gross expenditure on research and development (R&D) in India is lowest in the world. India spends USD 43 per capita on R&D. India Innovation Index was recently released by NITI Aayog, providing ranks to states and union territories based on their innovation performance.

NITI Aayog says,

India needs to increase this expenditure, in order to be on a par with the BRICS or ASEAN countries.
Russia spends USD 285 per capita, Brazil spends USD 173 while Malaysia spends USD 293, on the R&D.
Gross expenditure on R&D (GERD) in India, as a percentage of GDP has remained consistent on 0.7% for about a decade.
India’s expenditure is lower as compared to Brazil (1.16%) and South Africa (0.83%).
Only Mexico (0.31%) had a lower share of GERD as percentage of GDP, than India.
Despite low expenditure on R&D, India has published more research papers as compared to countries like Russia, Brazil, and South Korea.

According to Government’s think tank, government spends more than 55% on R&D which needs to be changed. It needs to find an inflexion point after which private sector can to the task. Though, businesses or private sector led R&D has been increasing rapidly from 2005-06. But it is not fast enough to overtake government led R&D. In order for India to be on a par with developed countries; it needs to encourage R&D by businesses, so that, it could intersect the government led R&D and rise.

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