Gross expenditure on research and development (GERD) in India has doubled since 2007, reaching $44 billion in 2014. The same year, India contributed 2.7% of overall global R&D expenditure. As a share of GDP, India’s GERD has been 0.88%­–0.90% between 2011 and 2015. For the past six years, India has had the fastest growing economy in the world, increasing 6.5% on average between 2011 and 2015, and growing 7.3% in 2016. This has resulted in an increase of 15% in domestic GERD between 2011 to 2016. The two main sources of funding in India are government and business enterprise, which represented 64% and 35% of total R&D funding, respectively, from 2011 to 2012. Between 2015 and 2017, federal R&D allocations for the top 10 science agencies increased by 63%. Federal R&D funding for strategic science sectors, such as nuclear energy, space and defense, increased between 50% to 120% between 2015 and 2017, while the budget for the Ministry of New and Renewable Energy increased 1,000%, due to Prime Minister Narendra Modi’s priority of implementing clean energy systems throughout the nation. The Department of Biotechnology received a 28% increase in allocations in 2016, with the Department aiming to create five new genomics centers revolving around specific fields, such as drug discovery, biology and infection, as well as more niche sectors like GMOs and vaccines.

After the election of Prime Minister Modi’s government in 2014, public-private partnerships were heavily encouraged through various policies and flagship programs in all industry sectors, including science and technology. India also attracts a great deal of foreign direct investment (FDI) in R&D, with over 1,070 foreign multinational corporations opening up R&D centers in the country. As a share of FDI, the pharmaceutical and biotechnology sector represents 1.4%, with chemicals making up 1.54%, and metals and minerals contributing 27.01%. In 2015, India was the top “global hotspot” for R&D, accounting for $12.5 billion of the overall $31 billion worth of global R&D activities.
SourceEuropean Commission

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