According to the Economic Survey 2024-25, what is the current expenditure on Research and Development (R&D) as a percentage of India’s GDP?

The correct answer is 0.64%.

Key Points

• India's expenditure on Research and Development (R&D) as a percentage of GDP stands at 0.64%, as per the Economic Survey 2024-25.
• This figure has remained relatively stagnant over the years, reflecting the need for increased investment in innovation and technology.
• India's R&D spending is significantly lower compared to global averages; countries like the USA and China spend around 2-3% of their GDP on R&D.
• Government funding constitutes the majority of R&D expenditure in India, with limited contributions from the private sector.
• The low R&D spending impacts India's global competitiveness in technological advancements and innovation.

Additional Information

• Global Comparison:
  • Countries like South Korea and Israel invest over 4% of their GDP in R&D, showcasing their emphasis on innovation-driven growth.
• India's R&D Landscape:
  • Key sectors include pharmaceuticals, information technology, and space research, led by organizations like ISRO, DRDO, and CSIR.
• Private Sector Participation:
  • India's private sector contribution to R&D is relatively low, accounting for approximately 36% of total R&D expenditure.
• Policy Recommendations:
  • Experts suggest increasing public-private partnerships and incentivizing private sector investment in R&D to boost innovation.
• Innovation Index:
  • India ranks 40th in the Global Innovation Index 2023, highlighting the scope for improvement in research and innovation capabilities.