NITI Aayog report on public R&D institutes in India

Background of the report

NITI Aayog report on public R&D institutes in India: NITI Aayog released a detailed report on Public Research and Development Institutes in India on 18 December 2025.
The report provides a comprehensive mapping of India’s public R&D ecosystem, identifying structural gaps and regional imbalances.

It also offers actionable recommendations to strengthen research productivity and improve technology commercialization.

Status of R&D expenditure in India

India’s Gross Expenditure on Research and Development (GERD) reached nearly ₹2 lakh crore in 2020–21.
This represents an almost eightfold increase over the past two decades, showing steady growth in research investment.

However, GERD remains around 0.6% to 0.7% of GDP, which is significantly lower than global innovation leaders.

Static GK fact: Countries like Israel and South Korea spend over 4% of their GDP on R&D.

Funding pattern of public R&D

The government sector accounts for 63.6% of India’s total R&D expenditure.
Private sector participation remains limited compared to developed economies.

This heavy dependence on public funding affects flexibility, speed of innovation, and market alignment of research outcomes.

Static GK Tip: In most OECD countries, the private sector contributes more than 60% of R&D spending.

Sectoral distribution of public R&D

Agriculture and allied sectors dominate public R&D, accounting for nearly 51% of institutions.
This reflects India’s historical focus on food security, crop productivity, and rural livelihoods.

Sectors like health, IT, and telecom follow but with much smaller shares.
Emerging areas such as artificial intelligence and advanced manufacturing remain underrepresented.

Regional imbalance in R&D institutions

The southern region hosts over 36% of India’s public R&D institutes.
In contrast, the Northeast has only 1.8%, highlighting serious regional disparity.

This uneven distribution affects local innovation capacity and limits region-specific research solutions.

Static GK fact: Regional clustering of R&D institutions often drives regional economic growth and skill development.

Urban concentration of research facilities

Nearly 48% of central R&D institutions are located in the 10 most populous Indian cities.
This urban concentration leads to congestion while leaving tier-2 and tier-3 cities underutilized.

The report notes that such clustering restricts inclusive innovation and balanced regional development.

Key recommendations of NITI Aayog

Future R&D institutes should be located near relevant industry clusters.
This proximity can improve industry-academia collaboration and speed up innovation cycles.

The report suggests establishing centralized research hubs to share resources and pool expertise across sectors.
Such hubs can reduce duplication and improve efficiency.

Strengthening collaboration and commercialization

The creation of collaborative research spaces is recommended to encourage interaction among scientists, entrepreneurs, and industry professionals.
The MIT Industrial Liaison Program is cited as a global best practice.

The report strongly advocates for Technology Transfer Offices (TTOs) to convert laboratory research into market-ready products.
Clear intellectual property guidelines are essential for this transition.

Administrative and infrastructure reforms

NITI Aayog highlights the need to streamline administrative procedures in public R&D institutions.
Outdated rules often delay procurement, hiring, and project approvals.

The report also stresses addressing infrastructure gaps and partnering with private enterprises to improve efficiency and outcomes.

Static GK Tip: Efficient research governance is as important as funding for innovation success.

Static Usthadian Current Affairs Table

NITI Aayog report on public R&D institutes in India: