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UPSC Notes

National Research and Development (R&D) Ecosystem in India

PYQs

8

Articles

1

Momentum

21

Phase IFoundation

Background

Overview

R&D spending is crucial for India's economic transformation, moving from a service-led economy to one with sophisticated manufacturing and a skilled workforce. It impacts innovation, global competitiveness, and long-term sustainable growth, making it a vital area for policy intervention and analysis.

Research and Development (R&D) is a critical driver of economic growth, innovation, and national competitiveness, encompassing activities undertaken to create new knowledge, products, and processes. India's R&D ecosystem involves contributions from both public and private sectors, with significant implications for its long-term development trajectory.

Phase IIStatic core

Facts & tables

Key facts

Private Sector Contribution

Private industry accounted for 51.8% of national R&D spending in 2023-24, surpassing government for the first time.

R&D Spending as % of GDP

India's R&D stands at 0.84% of GDP, significantly lower than global leaders like the U.S. (3.45%), China (2.58%), and South Korea (4.94%).

Key Private Sector Investors

Transport firms are the largest corporate investors, followed by pharmaceuticals, biotechnology, and information technology (IT), with new capital flowing into AI, chip design, and semiconductor fabs.

Drivers of Recent Surge

The recent increase in private R&D spending is attributed partly to better measurement (mandatory sustainability disclosures, tighter RBI norms) and genuine new investments.

Reference table

Static syllabus anchors

TypeReference
Conceptual areaIndian Economy

Reference table

Institutions & roles

BodyRole
Department of Science and TechnologyData collection and analysis of india's research profile
Phase IIIExam lens

Prelims angle

Overview

Prelims angle: Multi-statement analysis

Prelims angle: Conceptual understanding

Quick revision

  • Private sector now leads national R&D spending (51.8% in 2023-24).
  • India's R&D spending is 0.84% of GDP, significantly lower than global leaders.
  • Key private sectors: Transport, Pharma, Biotech, IT; new focus on AI, chips.
  • Recent surge partly due to better measurement and new investments.
  • Crucial for economic transformation, skilled workforce, and manufacturing.

High-confidence PYQs

2022Conceptual understanding, Multi-statement analysis

Which of the following activities constitute the real sector in the economy? 1. Farmers harvesting their crops. 2. Textile mills converting raw cotton into ...

EconomyOpen question

In India, which one of the following is responsible for maintaining price stability by controlling inflation?

EconomyOpen question
2022Institutional roles and functions, Factual recall

Which of the following activities constitute the real sector in the economy? 1. Farmers harvesting their crops. 2. Textile mills converting raw cotton into ...

EconomyOpen question

In India, which one of the following is responsible for maintaining price stability by controlling inflation?

EconomyOpen question
2021Multi-statement analysis, Conceptual understanding

India Government Bond Yields are influenced by which of the following? 1. Actions of the United States Federal Reserve. 2. Actions of the Reserve Bank of Ind...

EconomyOpen question
2020Multi-statement analysis, Conceptual understanding

Consider the following statements: 1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI). 2. The WPI doe...

EconomyOpen question
2018Conceptual understanding, Terminology-based question

Increase in absolute and per capita real GNP do not connote a higher level of economic development, if -

EconomyOpen question
2017Multi-statement analysis, Factual recall

Which of the following has/have occurred in India after its liberalization of economic policies in 1991? 1. The share of agriculture in GDP increased enormo...

EconomyOpen question

Consider the following statements : 1. Tax revenue as a percent of GDP of India has steadily increased in the last decade. 2. Fiscal deficit as a percent of...

EconomyOpen question
2017Multi-statement analysis, Conceptual understanding

Which of the following has/have occurred in India after its liberalization of economic policies in 1991? 1. The share of agriculture in GDP increased enormo...

EconomyOpen question

Consider the following statements : 1. Tax revenue as a percent of GDP of India has steadily increased in the last decade. 2. Fiscal deficit as a percent of...

EconomyOpen question
2013Definition-based questions, Conceptual understanding

The National income of a country for a given period is equal to the:

EconomyOpen question

Topic timeline

Indian Economy
Prelims 2013· Definition-based questions, Conceptual understanding

The National income of a country for a given period is equal to the:

Open question
Prelims 2017· Multi-statement analysis, Factual recall

Which of the following has/have occurred in India after its liberalization of economic policies in 1991? 1. The share of agriculture in GDP increased enormo...

Open question

Consider the following statements : 1. Tax revenue as a percent of GDP of India has steadily increased in the last decade. 2. Fiscal deficit as a percent of...

Open question
Prelims 2017· Multi-statement analysis, Conceptual understanding

Which of the following has/have occurred in India after its liberalization of economic policies in 1991? 1. The share of agriculture in GDP increased enormo...

Open question

Consider the following statements : 1. Tax revenue as a percent of GDP of India has steadily increased in the last decade. 2. Fiscal deficit as a percent of...

Open question
Prelims 2018· Conceptual understanding, Terminology-based question

Increase in absolute and per capita real GNP do not connote a higher level of economic development, if -

Open question
Prelims 2020· Multi-statement analysis, Conceptual understanding

Consider the following statements: 1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI). 2. The WPI doe...

Open question
Prelims 2021· Multi-statement analysis, Conceptual understanding

India Government Bond Yields are influenced by which of the following? 1. Actions of the United States Federal Reserve. 2. Actions of the Reserve Bank of Ind...

Open question
Prelims 2022· Conceptual understanding, Multi-statement analysis

Which of the following activities constitute the real sector in the economy? 1. Farmers harvesting their crops. 2. Textile mills converting raw cotton into ...

Open question

In India, which one of the following is responsible for maintaining price stability by controlling inflation?

Open question
Prelims 2022· Institutional roles and functions, Factual recall

Which of the following activities constitute the real sector in the economy? 1. Farmers harvesting their crops. 2. Textile mills converting raw cotton into ...

Open question

In India, which one of the following is responsible for maintaining price stability by controlling inflation?

Open question

Quantum shift: On private industry and national research spending

06 Aug 2026 · India's R&D landscape is shifting, with private industry now leading spending, though overall investment remains low compared to global peers. This trend, partly driven by better reporting and new tech investments, is critical for fostering innovation, skilled labor, and advanced manufacturing to boost economic competitiveness.

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Related topics

Current topic

National Research and Development (R&D) Ecosystem in India

Practice writing on this topic

UPSC has asked 8 linked questions on National Research and Development (R&D) Ecosystem in India in Mains. Write an answer to one — and get it evaluated.

See Mains PYQsEvaluate an answer

UPSC Prelims PYQs on National Research and Development (R&D) Ecosystem in India

Practice official previous year questions asked by UPSC related to this concept.

Consider the following statements: 1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI). 2. The WPI doe...

2020·Economy
Solve

Which of the following has/have occurred in India after its liberalization of economic policies in 1991? 1. The share of agriculture in GDP increased enormo...

2017·Economy
Solve

Consider the following statements : 1. Tax revenue as a percent of GDP of India has steadily increased in the last decade. 2. Fiscal deficit as a percent of...

2017·Economy
Solve

The National income of a country for a given period is equal to the:

2013·Economy
Solve

Which of the following activities constitute the real sector in the economy? 1. Farmers harvesting their crops. 2. Textile mills converting raw cotton into ...

2022·Economy
Solve

Increase in absolute and per capita real GNP do not connote a higher level of economic development, if -

2018·Economy
Solve

In India, which one of the following is responsible for maintaining price stability by controlling inflation?

2022·Economy
Solve

India Government Bond Yields are influenced by which of the following? 1. Actions of the United States Federal Reserve. 2. Actions of the Reserve Bank of Ind...

2021·Economy
Solve

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