India's Expenditure on Research and Development: An Analysis of GERD

Research and development (R&D) is critical for economic growth, technological progress, and innovation. Countries around the world invest in R&D to improve their competitiveness and create new opportunities for their citizens. In India, the Gross Expenditure on Research and Development (GERD) is a key metric used to measure the level of investment in R&D. In this article, we will explore India's expenditure on R&D and analyze the trends and patterns of GERD over the years.

The GERD in India has been steadily increasing over the years. In the 1980s, India's GERD was only around 0.6% of the country's Gross Domestic Product (GDP). However, by 2022, the GERD had risen to 0.7% of the GDP. This may seem like a small increase, but it is significant given the size of India's economy.

One interesting trend in India's GERD is the shift in the balance between public and private funding. In the 1980s, public funding accounted for the majority of GERD, while private funding was negligible. However, in recent years, private funding has been increasing at a faster rate than public funding. In 2019, private funding accounted for around 45% of GERD, while public funding accounted for around 55%.

Another trend is the sectoral distribution of R&D expenditure in India. Historically, the government has been the biggest spender on R&D, accounting for around two-thirds of GERD. However, in recent years, there has been an increase in private sector expenditure, particularly in industries like pharmaceuticals, biotechnology, and information technology. In India, the government contribution accounts for around 64% of GERD, while the private sector accounts for around 36% on an average.

Despite the increase in GERD over the years, India's expenditure on R&D is still relatively low compared to other countries. According to data from the UNESCO Institute for Statistics, India's GERD in 2022 was only around 0.7% of the GDP, while the global average was around 1.7%. Countries like Israel, South Korea, and Japan have GERD levels that are around 4-5 times higher than India.

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Developed countries the United States, Sweden, and Switzerland spend about 2.9%, 3.2% and 3.4%, respectively. Israel spends 4.5% of its GDP on R&D, the highest in the world.

To address this, the Indian government has set ambitious targets for increasing the GERD. The government has set a target of increasing the GERD to 2% of the GDP by 2022 and to 2.5% of the GDP by 2025.

To achieve this, the government has launched several initiatives to promote R&D, including the Atal Innovation Mission, the National Innovation Foundation, and the National Science and Technology Entrepreneurship Development Board.

In conclusion, India's expenditure on R&D has been increasing steadily over the years, with a shift towards private funding and a focus on certain industries. However, India still lags behind other countries in terms of GERD, and the government has set ambitious targets to catch up. With the right policies and initiatives, India has the potential to become a major player in the global R&D landscape.