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Rise in India's GERD to 0.84% of GDP (2023‑24) – Govt & Private Sector Share, New RDI Fund & ANRF

India's GERD rose to ₹244,767.81 crore in 2023‑24, reaching 0.84% of GDP, with private sector share crossing 50%. New initiatives like the ₹1 lakh crore RDI Fund, ANRF, and several national missions aim to boost private participation and push GERD toward the 1% target.
Overview The GERD in India has risen steadily, reaching ₹244,767.81 crore in 2023‑24, which is 0.84% of GDP . The share of the DST shows a shift from government‑dominated spending to greater private‑sector participation. Key Developments Launch of a RDI Fund to boost private R&D. Creation of the ANRF to mobilise additional non‑government resources. National missions such as the National Quantum Mission (Rs 6,003.65 crore), India Semiconductor Mission (Rs 76,000 crore), and the National Supercomputing Mission receive dedicated outlays. Promotion of PPPs and technology hubs under the quantum and cyber‑physical systems missions. Implementation of innovation schemes like NIDHI , BIRAC , iDEX and TIDE 2.0 . Important Facts (2019‑24) GERD grew from ₹132,567.01 crore (0.66% of GDP) in 2019‑20 to ₹244,767.81 crore (0.84% of GDP) in 2023‑24. Government sector’s share fell from 66.2% to 48.2% ; private sector rose from 33.8% to 51.8% . Higher education institutions contributed about 12‑13% of total R&D in recent years, while public sector enterprises stayed around 4% . Sector‑wise spending in 2023‑24: Central sector ₹85,711.50 crore , State sector ₹9,796.10 crore , Private sector ₹118,351.68 crore , Higher‑education sector ₹30,908.53 crore . UPSC Relevance Understanding the trajectory of GERD helps answer questions on India’s innovation ecosystem, economic growth, and global competitiveness (GS3). The shift toward private funding reflects policy emphasis on PPPs and aligns with the “Make in India” narrative. Knowledge of missions like the National Quantum Mission and bodies such as ANRF is useful for questions on science‑technology policy and budget allocations (GS3, GS2). The data also illustrate inter‑sectoral collaboration, a theme in governance and development studies (GS4). Way Forward Maintain a steady rise of GERD to at least 1% of GDP by 2030 through sustained budgetary support. Deepen PPPs by creating more technology parks and joint labs. Strengthen the role of ANRF as a catalyst for high‑risk, high‑reward research. Encourage higher‑education institutions to increase industry‑linked research, aiming for >15% contribution. Monitor impact of the RDI Fund and adjust policy based on outcomes.
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Key Insight

Private‑sector R&D now leads India’s GERD, driving a new innovation push.

Key Facts

  1. GERD 2023‑24 = ₹244,767.81 crore, 0.84% of GDP.
  2. GERD 2019‑20 = ₹132,567.01 crore, 0.66% of GDP.
  3. Government share fell from 66.2% (2019‑20) to 48.2% (2023‑24).
  4. Private sector share rose from 33.8% (2019‑20) to 51.8% (2023‑24).
  5. Private sector spending in 2023‑24 = ₹118,351.68 crore.
  6. Higher‑education institutions contribute about 12‑13% of total R&D.
  7. RDI Fund of ₹1 lakh crore and ANRF of ₹14,000 crore launched to boost private‑led research.

Background

The rise in GERD reflects India’s effort to move from a government‑centric R&D model to a mixed ecosystem that leverages private capital and PPPs. This aligns with the ‘Make in India’ agenda and aims to improve global competitiveness, a core topic in GS‑3 and GS‑2.

UPSC Syllabus

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

Mains Angle

GS‑3: Discuss how increased private participation and new funding bodies (RDI Fund, ANRF) reshape India’s innovation ecosystem and its implications for economic growth.

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Overview

Full Article

Overview

The GERD in India has risen steadily, reaching ₹244,767.81 crore in 2023‑24, which is 0.84% of GDP. The share of the DST shows a shift from government‑dominated spending to greater private‑sector participation.

Key Developments

  • Launch of a RDI Fund to boost private R&D.
  • Creation of the ANRF to mobilise additional non‑government resources.
  • National missions such as the National Quantum Mission (Rs 6,003.65 crore), India Semiconductor Mission (Rs 76,000 crore), and the National Supercomputing Mission receive dedicated outlays.
  • Promotion of PPPs and technology hubs under the quantum and cyber‑physical systems missions.
  • Implementation of innovation schemes like NIDHI, BIRAC, iDEX and TIDE 2.0.

Important Facts (2019‑24)

  • GERD grew from ₹132,567.01 crore (0.66% of GDP) in 2019‑20 to ₹244,767.81 crore (0.84% of GDP) in 2023‑24.
  • Government sector’s share fell from 66.2% to 48.2%; private sector rose from 33.8% to 51.8%.
  • Higher education institutions contributed about 12‑13% of total R&D in recent years, while public sector enterprises stayed around 4%.
  • Sector‑wise spending in 2023‑24: Central sector ₹85,711.50 crore, State sector ₹9,796.10 crore, Private sector ₹118,351.68 crore, Higher‑education sector ₹30,908.53 crore.

Exam Relevance

Understanding the trajectory of GERD helps answer questions on India’s innovation ecosystem, economic growth, and global competitiveness (GS3). The shift toward private funding reflects policy emphasis on PPPs and aligns with the “Make in India” narrative. Knowledge of missions like the National Quantum Mission and bodies such as ANRF is useful for questions on science‑technology policy and budget allocations (GS3, GS2). The data also illustrate inter‑sectoral collaboration, a theme in governance and development studies (GS4).

Way Forward

  • Maintain a steady rise of GERD to at least 1% of GDP by 2030 through sustained budgetary support.
  • Deepen PPPs by creating more technology parks and joint labs.
  • Strengthen the role of ANRF as a catalyst for high‑risk, high‑reward research.
  • Encourage higher‑education institutions to increase industry‑linked research, aiming for >15% contribution.
  • Monitor impact of the RDI Fund and adjust policy based on outcomes.
Read Original on pib

Private‑sector R&D now leads India’s GERD, driving a new innovation push.

Key Facts

  1. GERD 2023‑24 = ₹244,767.81 crore, 0.84% of GDP.
  2. GERD 2019‑20 = ₹132,567.01 crore, 0.66% of GDP.
  3. Government share fell from 66.2% (2019‑20) to 48.2% (2023‑24).
  4. Private sector share rose from 33.8% (2019‑20) to 51.8% (2023‑24).
  5. Private sector spending in 2023‑24 = ₹118,351.68 crore.
  6. Higher‑education institutions contribute about 12‑13% of total R&D.
  7. RDI Fund of ₹1 lakh crore and ANRF of ₹14,000 crore launched to boost private‑led research.

Background & Context

The rise in GERD reflects India’s effort to move from a government‑centric R&D model to a mixed ecosystem that leverages private capital and PPPs. This aligns with the ‘Make in India’ agenda and aims to improve global competitiveness, a core topic in GS‑3 and GS‑2.

UPSC Syllabus Connections

GS2•Government policies and interventions for developmentGS3•Developments in science and technology and their applicationsPrelims_GS•National Current AffairsEssay•Science, Technology and SocietyEssay•Economy, Development and InequalityGS2•Issues relating to Health, Education, Human ResourcesGS2•Functions and responsibilities of Union and StatesPrelims_GS•Demographics and Social SectorEssay•Education, Knowledge and CulturePrelims_GS•Constitution and Political System

Mains Answer Angle

GS‑3: Discuss how increased private participation and new funding bodies (RDI Fund, ANRF) reshape India’s innovation ecosystem and its implications for economic growth.

Analysis

Related PYQs

No related PYQs linked to this article yet.

Practice Questions

GS3
Easy
Prelims MCQ

GERD trends and sectoral share

1 marks
4 keywords
GS3
Medium
Mains Short Answer

New funding mechanisms for R&D

10 marks
5 keywords
GS3
Hard
Mains Essay

Private sector role in science & technology policy

250 marks
7 keywords
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