UPSC Mapping
Prelims
- GERD
- Research & Development
- Innovation Indicators
Mains
- GS Paper III – Science & Technology, Innovation and R&D
Article
Gross Expenditure on R&D in India reached a significant milestone after the country’s research investment rose to a 15-year high of 0.84% of GDP in FY 2023-24. The latest figures highlight growing investments in research, innovation and technology, with private industry emerging as the largest contributor to national R&D spending. Aspirants can also explore the daily current affairs archive for more science and technology updates.
| GERD (FY 2023-24) | Total Funding | Private Share |
|---|---|---|
| 0.84% of GDP | ₹2.45 lakh crore | 51.8% |
What is Gross Expenditure on R&D?
Gross Expenditure on R&D (GERD) measures the total expenditure incurred on research and development activities within a country during a financial year. It includes spending by the government, private industry, higher education institutions and other research organisations.
GERD is widely used as an indicator of a country’s scientific capability, innovation ecosystem and commitment to knowledge-based economic growth.
Why is Gross Expenditure on R&D in News?
India’s GERD reached a 15-year high of 0.84% of GDP in FY 2023-24, reversing a decade-long decline in research intensity.
The latest data also marks the first time that private industry has overtaken public funding as the largest contributor to India’s research expenditure.
Key Highlights
- Record GERD: 0.84% of GDP in FY 2023-24, highest in 15 years.
- Funding growth: Total R&D expenditure rose from ₹1.33 lakh crore in FY 2019-20 to ₹2.45 lakh crore in FY 2023-24.
- Private sector leadership: Industry spending almost tripled from ₹44,800 crore to ₹1.26 lakh crore, accounting for 51.8% of total GERD.
- Historic shift: Private industry surpassed public funding for the first time.
Global Comparison
- India: 0.84% of GDP.
- Israel: Approximately 5% of GDP.
- United States: Approximately 3.5% of GDP.
- China: Approximately 2.4% of GDP.
GERD Target
India aims to increase GERD to 2% of GDP, aligning itself with advanced knowledge-based economies.
- Innovation ecosystem: Strengthen research, technology development and competitiveness.
- Economic growth: Promote productivity, high-value manufacturing and innovation-driven development.
- Global competitiveness: Support India’s aspiration as a leading knowledge economy.
Way Forward
Achieving the 2% GERD target will require sustained public investment alongside greater private participation, stronger industry-academia collaboration and better support for research infrastructure. Policy stability, improved funding mechanisms and commercialisation of discoveries will bolster India’s position among the world’s leading innovation economies. Official information is available from the Department of Science & Technology and the NITI Aayog.
Prelims Practice Corner
Q1. Gross Expenditure on R&D (GERD) measures?
- (a) Government expenditure only
- (b) Private R&D expenditure only
- (c) Total national expenditure on research and development
- (d) Foreign investment in R&D
Answer: (c).
Q2. India’s GERD reached what percentage of GDP in FY 2023-24?
- (a) 0.50%
- (b) 0.70%
- (c) 0.84%
- (d) 1.20%
Answer: (c).
Q3. For the first time, which sector became the largest contributor to India’s GERD?
- (a) Central Government
- (b) State Governments
- (c) Higher Education Institutions
- (d) Private Industry
Answer: (d).
Q4. India’s target GERD is?
- (a) 1% of GDP
- (b) 1.5% of GDP
- (c) 2% of GDP
- (d) 3% of GDP
Answer: (c).
Q5. Which country spends the highest share of GDP on R&D according to the data mentioned?
- (a) China
- (b) United States
- (c) India
- (d) Israel
Answer: (d).
Mains Practice Questions
Q1. Discuss the significance of increasing Gross Expenditure on R&D in achieving innovation-led economic growth in India. (10 marks)
Answer Structure:
- Intro: Define GERD and its importance.
- Body: Innovation, competitiveness, private participation, global comparison.
- Conclusion: Need for sustained research investment.
Q2. Examine the role of research and development expenditure in strengthening India’s knowledge economy and technological self-reliance. (15 marks)
Answer Structure:
- Intro: Importance of R&D.
- Body: Public-private investment, innovation ecosystem, technology development, global competitiveness.
- Conclusion: Emphasise achieving the 2% GERD target.
FAQs on Gross Expenditure on R&D
What is Gross Expenditure on R&D (GERD)?
GERD measures the total expenditure on research and development activities undertaken within a country by government, industry, higher education institutions and other organisations.
Why is India’s latest GERD significant?
India’s GERD reached 0.84% of GDP in FY 2023-24, marking a 15-year high and reversing a decade-long decline in research intensity.
What is India’s GERD target?
India aims to increase its Gross Expenditure on R&D to 2% of GDP, bringing it closer to advanced innovation-driven economies.
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