Indian Research Deficit

Indian Research Deficit: Why innovation is the missing pillar of India’s global ambition? Read here to learn about the shortcomings of the research potential of the country.

India’s ambition to emerge as a major global power, economically, strategically, and technologically, has once again brought its chronic research and development (R&D) deficit into sharp focus.

Despite being the world’s most populous country, the fifth-largest economy, and home to a vast pool of scientific and engineering talent, India continues to underinvest in research and innovation.

This structural weakness threatens long-term competitiveness, strategic autonomy, and inclusive growth.

Table of Contents

What is the Indian Research Deficit?

India’s research deficit refers to the persistent gap between its potential and actual performance in scientific research, innovation, and high-end technology development.

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The problem is not a lack of talent, but inadequate investment, weak institutional linkages, limited private-sector participation, and poor translation of research into market-ready technologies.

At the heart of this deficit lies low R&D spending, which has stagnated at around 0.6-0.7% of GDP for over two decades. This contrasts sharply with countries that have successfully leveraged innovation for economic transformation:

China: ~2.4% of GDP
United States: ~3.5%
Israel: ~5.4%

Even individual global firms such as Huawei spend a higher share of revenues on R&D than India does as a nation.

Key Indicators Highlighting the Gap

Low Research Intensity: Although India accounts for nearly 17.5% of the world’s population, it produces only about 3% of global research output.

The density of researchers stands at roughly 255 per million people, far below the global average (~1,198), and dramatically lower than innovation leaders such as South Korea or the U.S.

Patent Quantity vs Quality: India has made progress in patent filings, ranking 6th globally in 2023, but its share of global filings is only ~1.8%, and resident filings per million people remain low.

More critically, many patents are incremental and rarely commercialised, reflecting weak industry uptake and enforcement.

Overdependence on Public Funding: The government contributes around 63.6% of total R&D spending, while the private sector accounts for only 36.4%.

In contrast, advanced innovation economies rely predominantly on industry-led research, often exceeding 70% private contribution.

Why Strong Research Capability Is Critical for India

Economic Competitiveness and Value-Chain Upgradation: Without robust R&D, India risks being trapped in low-value manufacturing and services.

Despite large investments under the India Semiconductor Mission, the absence of an advanced commercial fabrication facility below 28 nm keeps India dependent on imports for cutting-edge chips.
Innovation is essential to move from assembly to design and intellectual leadership.

Strategic Autonomy and Technology Sovereignty: Geopolitical uncertainties have highlighted the risks of technological dependence.

While domestic defence production has increased, reliance on imported aero-engines for platforms like the Tejas aircraft reflects decades of underinvestment in core technologies.
Indigenous research is key to avoiding external “technology vetoes”.

Harnessing the Demographic Dividend: India produces millions of STEM graduates annually, yet the lack of high-quality research jobs leads to “brain waste” or outward migration.

In 2024–25 alone, over 6 lakh students went abroad, many pursuing advanced research in AI and clean energy due to limited domestic lab infrastructure.

Context-Specific Problem Solving: India’s development challenges-heatwaves, monsoon variability, public health risks-require locally grounded scientific solutions.

The recent extreme heat events exposed limitations of global climate models, prompting initiatives such as Mission Mausam to develop indigenous forecasting capabilities.

Government Initiatives to Address the Gap

Recognising the urgency, the government has launched several initiatives:

₹1 lakh crore Research, Development and Innovation (RDI) Fund, with initial allocation to catalyse private-sector and deep-tech research
Anusandhan National Research Foundation (ANRF) to strengthen academic research and basic science
National missions on semiconductors, quantum technologies, artificial intelligence, green energy, and hydrogen

These steps signal intent, but scale and execution remain critical challenges.

Structural Challenges Persisting

Private Sector Risk Aversion: Indian industry remains hesitant to invest in long-gestation, high-risk research. Without strong incentives and co-funding mechanisms, firms prefer importing technology rather than developing it domestically.
Academia-Industry Disconnect: The “valley of death” between laboratory research and commercial products remains wide. While select institutions have succeeded in technology licensing, the majority of patents from smaller universities remain unused due to weak technology transfer offices and limited industry engagement.
Brain Drain and Talent Insecurity: Top researchers often leave due to funding uncertainty, bureaucratic delays, and a lack of institutional autonomy. Delayed grant disbursements disrupt experiments and undermine confidence in the research ecosystem.
Weak IP Enforcement: Although patent filings have grown, enforcement remains slow and unpredictable, reducing incentives for firms and researchers to pursue breakthrough innovation.

Way Forward

Scale R&D Investment: Raise spending to 2% of GDP within the next 5-7 years, with at least half coming from the private sector through tax incentives, co-funding, and outcome-linked support.
Mission-Mode Governance: Adopt focused, long-term national missions in critical technologies with assured funding, strategic milestones, and national security alignment.
Reform Universities into Research Engines: Build research-intensive universities, expand PhD and postdoctoral fellowships, recruit global faculty, and invest in world-class experimental infrastructure.
Institutionalise Industry-Academia Collaboration: Mandate joint labs, industry-funded chairs, incubators, and professional technology transfer offices to ensure smoother lab-to-market transitions.
Strengthen IP Regimes and Incentives: Fast-track patent approvals, improve enforcement, and establish transparent revenue-sharing models to reward innovators.
Retain and Attract Talent: Offer globally competitive compensation, mobility grants, and stable career pathways through flagship national research institutions.

Conclusion

India’s research deficit is not a failure of intellect or aspiration, but of investment, institutional design, and ecosystem coherence. Without a decisive shift towards sustained, high-quality research funding and governance, economic growth and strategic autonomy will remain fragile.

Bridging this gap over the next decade is essential for achieving the vision of Viksit Bharat, ensuring technological sovereignty, and securing India’s place among the world’s leading innovation-driven economies.

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