India: gross expenditure on R&D as a share of GDP 2022 | Statista (2024)

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India: gross expenditure on R&D as a share of GDP 2022 | Statista? ›

The gross expenditure on R&D was forecast to reach 65.2 billion U.S. dollars, a share of 0.65 percent of the total GDP in 2022.

India's R&D is witnessing significant growth, with a notable increase in Gross Expenditure on Research and Development (GERD) from ₹6,01,968 million in 2010-11 to ₹12,73,810 million in 2020-21.

Israel and South Korea are the world's leading spenders on research and development (R&D) as a percentage of gross domestic product (GDP).

While R&D expenditure in the EU's business enterprise sector was equivalent to 1.48 % of GDP in 2022, this ratio reached 3.90 % in South Korea, 2.68 % in the United States, 2.62 % in Japan and 2.26 % in Switzerland (2021 data for all these economies apart from the EU).

The India Innovation Index 2021 has found that the overall spending on R&D by India has been relatively low across the country. India's R&D expense has dropped to the current 0.64% of GDP from 0.8% in 2008-2009 and 0.7% in 2017-2018, whereas the world average stands at around 1.8%.

One of the main reasons for R&D inadequacies in India is the lack of adequate funding for research and development. The government invests very little in research, and private companies are also not willing to invest a significant amount in R&D due to the high risks and uncertainties involved.

Sweden. Sweden is ranked among the countries that spend the most on research and development. In 2021, the country had an R&D intensity of 3.41%. It spent $20.22 billion on research and development in 2021.

Sector which includes trade, transport, banking, communication and services is known as tertiary sector. Tertiary sector mainly deals with services. Hence, tertiary sector is also known as service sector of the economy. Service sector is the largest contributor to GDP in India.

The Research & Development (R&D) Expense to Revenue ratio measures the percentage of sales that is allocated to R&D expenditures. It is not as effective when looking at companies in different industries because different industries place different values on R&D.

What is the R&D budget? ›

This measure helps companies determine what percentage of their revenue is allocated for their research and development budget. The R&D budget covers all costs— including labor, materials, and overhead—associated with discovering new knowledge and translating research findings into plans or designs for new products.

Consequently, in 2022, India emerged as one of the fastest growing economies in the world, despite significant challenges in the global environment – including renewed disruptions of supply lines following the rise in geopolitical tensions, the synchronized tightening of global monetary policies, and inflationary ...

India retains 40th rank out of 132 economies in the Global Innovation Index 2023 rankings published by the World Intellectual Property Organization.

Currently, over 1,140 centers in India are dedicated to R&D which employ over 900,000 professionals. India has been ranked as the top innovation destination in Asia and second in the world for new innovation centres, accounting for 27 per cent of Asia's new innovation centres.

After deducting price factors, China's R&D spending in 2022 rose 8 percent year on year, said the NBS. China's total spending on R&D accounted for 2.55 percent of its gross domestic product last year, up 0.12 percentage points from the previous year.

“The tax-to-GDP ratio should be at an all-time high next year at 11.7% from 11.6% this year and 11.2% in 2022-23. This is primarily because of direct taxes increasing from 6.1% of GDP in 2022-23 to 6.6% this year and 6.7% next year, which is more equitable,” Mr.

Research and development activities focus on the innovation of new products or services in a company. Among the primary purposes of R&D activities is for a company to remain competitive as it produces products that advance and elevate its current product line.

Sector-wise GDP of India

The services sector accounts for 54.86% of total India's GVA of 266.78 lakh crore Indian rupees. With GVA of Rs. 73.50 lakh crore, the Industry sector contributes 27.55%. While Agriculture and allied sector share 17.59%.