The expenditure on the research and innovation in India, at present, is only _____ % of GDP. 

The correct answer is 0.69%.

Research funding in India occurs through various fostering institutions, linked directly or indirectly to the Ministries of the Indian government.

Key Points

• The India Innovation Index 2021 has found that the overall spending on R&D by India has been relatively low across the country.
• This was reflected in the overall share of gross expenditure on R&D (GERD) as a percentage of GDP, at about 0.69%.
• Developed countries the United States, Sweden, and Switzerland spend about 2.9%, 3.2% and 3.4%, respectively.
• Israel spends 4.5% of its GDP on R&D, the highest in the world.
• The reasons cited for the low spending on R&D in developing countries like India are: 
  •  That investments in R&D take time to produce results.
  • Countries like India tend to have bigger issues like hunger, disease control and raising the quality of life and authorities divert resources towards tackling them.
  • However, in one of the studies it was found that these pressing concerns shouldn’t be viewed as a hindrance, but rather an opportunity to widen the ambit of R&D.

Additional Information

• Science and innovation will be crucial to India maintaining its economic growth out to 2035.
• Despite relatively low funding levels, India is making significant advances.
• It benefits from a large talent pool and several world-standard technology clusters and start-up ecosystems.
• India is attracting increasing rates of investment in research and development.
• The research ecosystem in India presents a significant opportunity for multinational corporations across the globe due to
  • access to technical talent.
  • low wages.
  • proximity to the regional market.