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India’s R&D Expenditure Rises to 0.84% of GDP (2023‑24) – Key Policies & Innovation Rankings

India’s total R&D spending rose to ₹244,768 crore in 2023‑24, lifting the GERD‑GDP ratio to 0.84% and prompting several high‑budget initiatives such as the RDI Fund, ANRF, and multiple national missions. The rise in GERD and improved Global Innovation Index ranking underscore the government’s push for private‑sector participation and innovation self‑reliance, a key focus for UPSC economics and policy analysis.
Overview The Ministry of Science & Technology answered a Parliament question on R&D spending. Data for FY 2019‑20 to 2023‑24 show that total GERD increased from ₹132,567 crore to ₹244,768 crore , raising the share of R&D from 0.66% to 0.84% of GDP. Key Developments (2024‑26) Budget allocations for scientific departments have been raised year‑on‑year. Launch of a ₹1.0 lakh crore Research, Development and Innovation (RDI) Fund to spur private‑sector, high‑risk research. Creation of the ANRF with ₹14,000 crore from the Centre. National missions funded: National Quantum Mission (₹6,003.65 crore), Interdisciplinary Cyber‑Physical Systems (₹3,660 crore), Semiconductor Mission (₹76,000 crore), Supercomputing Mission. Promotion of PPPs and technology hubs under the above missions. Innovation programmes such as NIDHI, BIRAC, iDEX and TIDE 2.0 to move inventions from labs to market. Policy frameworks like Geospatial Policy 2022, Space Policy 2023 and BioE3 Policy 2024 encouraging private participation. Important Facts Government sector R&D grew from ₹87,813 crore (2019‑20) to ₹117,861 crore (2023‑24). Private sector R&D rose sharply from ₹44,754 crore to ₹126,907 crore in the same period. India’s GII improved from 46th (2021) to 38th (2025). NITI Aayog highlighted India’s strong innovation efficiency – converting inputs into outputs better than many peers. UPSC Relevance Understanding R&D trends is essential for GS‑3 (Economy) and GS‑2 (Polity) questions on science policy, budgeting, and public‑private collaboration. The data illustrate how fiscal measures translate into measurable outcomes like GERD‑GDP ratio and global rankings, a typical analytical angle in the UPSC mains. Knowledge of specific missions and policies helps answer questions on sectoral priorities, technology self‑reliance, and India’s position in the global innovation ecosystem. Way Forward Maintain the upward trajectory of GERD to reach the 1% of GDP target envisaged in the Science & Technology policy. Deepen PPPs by creating more technology incubators and easing regulatory bottlenecks. Strengthen monitoring mechanisms through ANRF to ensure funds reach high‑impact projects. Continue policy reforms like the Geospatial and BioE3 policies to attract private capital and talent. Leverage improved GII ranking to negotiate better technology partnerships and attract foreign R&D investment.
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Key Insight

R&D spending hits 0.84% of GDP, nudging India toward the 1% target and higher innovation rank.

Key Facts

  1. GERD grew from ₹132,567 cr (FY 2019‑20) to ₹244,768 cr (FY 2023‑24).
  2. R&D share of GDP rose from 0.66% to 0.84% in the same period.
  3. Government R&D rose to ₹117,861 cr; private R&D surged to ₹126,907 cr by FY 2023‑24.
  4. ₹1 lakh crore Research, Development and Innovation (RDI) Fund launched for high‑risk private research.
  5. Anusandhan National Research Foundation (ANRF) created with a ₹14,000 cr budget.
  6. India’s Global Innovation Index rank improved from 46 (2021) to 38 (2025).
  7. Key missions funded: Quantum (₹6,003.65 cr), Semiconductor (₹76,000 cr), Cyber‑Physical Systems (₹3,660 cr).

Background

The rise in GERD reflects the government's push for self‑reliance in science and technology, a core GS‑3 theme. It also ties to GS‑2 as policy reforms (missions, PPPs, ANRF) shape the institutional framework for research funding.

UPSC Syllabus

  • GS3 — Developments in science and technology and their applications
  • GS2 — Government policies and interventions for development
  • Prelims_GS — National Current Affairs
  • Essay — Science, Technology and Society
  • Essay — Economy, Development and Inequality
  • GS2 — Functions and responsibilities of Union and States
  • Essay — Education, Knowledge and Culture
  • GS2 — Issues relating to Health, Education, Human Resources
  • Prelims_GS — Demographics and Social Sector
  • Prelims_GS — Constitution and Political System

Mains Angle

In GS‑3, candidates can discuss how fiscal measures and institutional reforms are steering India toward the 1% of GDP R&D target and better global innovation standing.

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Overview

Full Article

Overview

The Ministry of Science & Technology answered a Parliament question on R&D spending. Data for FY 2019‑20 to 2023‑24 show that total GERD increased from ₹132,567 crore to ₹244,768 crore, raising the share of R&D from 0.66% to 0.84% of GDP.

Key Developments (2024‑26)

  • Budget allocations for scientific departments have been raised year‑on‑year.
  • Launch of a ₹1.0 lakh crore Research, Development and Innovation (RDI) Fund to spur private‑sector, high‑risk research.
  • Creation of the ANRF with ₹14,000 crore from the Centre.
  • National missions funded: National Quantum Mission (₹6,003.65 crore), Interdisciplinary Cyber‑Physical Systems (₹3,660 crore), Semiconductor Mission (₹76,000 crore), Supercomputing Mission.
  • Promotion of PPPs and technology hubs under the above missions.
  • Innovation programmes such as NIDHI, BIRAC, iDEX and TIDE 2.0 to move inventions from labs to market.
  • Policy frameworks like Geospatial Policy 2022, Space Policy 2023 and BioE3 Policy 2024 encouraging private participation.

Important Facts

  • Government sector R&D grew from ₹87,813 crore (2019‑20) to ₹117,861 crore (2023‑24).
  • Private sector R&D rose sharply from ₹44,754 crore to ₹126,907 crore in the same period.
  • India’s GII improved from 46th (2021) to 38th (2025).
  • NITI Aayog highlighted India’s strong innovation efficiency – converting inputs into outputs better than many peers.

Exam Relevance

Understanding R&D trends is essential for GS‑3 (Economy) and GS‑2 (Polity) questions on science policy, budgeting, and public‑private collaboration. The data illustrate how fiscal measures translate into measurable outcomes like GERD‑GDP ratio and global rankings, a typical analytical angle in the UPSC mains. Knowledge of specific missions and policies helps answer questions on sectoral priorities, technology self‑reliance, and India’s position in the global innovation ecosystem.

Way Forward

  • Maintain the upward trajectory of GERD to reach the 1% of GDP target envisaged in the Science & Technology policy.
  • Deepen PPPs by creating more technology incubators and easing regulatory bottlenecks.
  • Strengthen monitoring mechanisms through ANRF to ensure funds reach high‑impact projects.
  • Continue policy reforms like the Geospatial and BioE3 policies to attract private capital and talent.
  • Leverage improved GII ranking to negotiate better technology partnerships and attract foreign R&D investment.
Read Original on pib

R&D spending hits 0.84% of GDP, nudging India toward the 1% target and higher innovation rank.

Key Facts

  1. GERD grew from ₹132,567 cr (FY 2019‑20) to ₹244,768 cr (FY 2023‑24).
  2. R&D share of GDP rose from 0.66% to 0.84% in the same period.
  3. Government R&D rose to ₹117,861 cr; private R&D surged to ₹126,907 cr by FY 2023‑24.
  4. ₹1 lakh crore Research, Development and Innovation (RDI) Fund launched for high‑risk private research.
  5. Anusandhan National Research Foundation (ANRF) created with a ₹14,000 cr budget.
  6. India’s Global Innovation Index rank improved from 46 (2021) to 38 (2025).
  7. Key missions funded: Quantum (₹6,003.65 cr), Semiconductor (₹76,000 cr), Cyber‑Physical Systems (₹3,660 cr).

Background & Context

The rise in GERD reflects the government's push for self‑reliance in science and technology, a core GS‑3 theme. It also ties to GS‑2 as policy reforms (missions, PPPs, ANRF) shape the institutional framework for research funding.

UPSC Syllabus Connections

GS3•Developments in science and technology and their applicationsGS2•Government policies and interventions for developmentPrelims_GS•National Current AffairsEssay•Science, Technology and SocietyEssay•Economy, Development and InequalityGS2•Functions and responsibilities of Union and StatesEssay•Education, Knowledge and CultureGS2•Issues relating to Health, Education, Human ResourcesPrelims_GS•Demographics and Social SectorPrelims_GS•Constitution and Political System

Mains Answer Angle

In GS‑3, candidates can discuss how fiscal measures and institutional reforms are steering India toward the 1% of GDP R&D target and better global innovation standing.

Analysis

Related PYQs

No related PYQs linked to this article yet.

Practice Questions

GS2
Easy
Prelims MCQ

R&D expenditure trends

2 marks
3 keywords
GS3
Medium
Mains Short Answer

Institutional reforms in science & technology

5 marks
4 keywords
GS3
Hard
Mains Essay

Achieving 1% R&D target – policy analysis

20 marks
5 keywords
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