India’s innovation ecosystem in 2025 reflects a striking paradox. While the government has aggressively boosted public R&D investment, the private sector continues to lag. The nation’s Gross Expenditure on R&D (GERD) more than doubled from ₹60,196 crore in 2013–14 to ₹1.27 lakh crore in 2023–24, supported by initiatives like DISHA and a ₹20,000 crore budget allocation. Yet, GERD remains just 0.64% of GDP—far below the global average of 2.6%.

The Vigyan Dhara scheme, with a ₹10,579 crore outlay (2021–25), is strengthening India’s scientific infrastructure and promoting global collaboration. However, private players contribute less than 30% to R&D, a stark contrast to over 70% in the U.S., China, and South Korea. Even high-income states like Tamil Nadu and Karnataka invest below the national average, widening regional disparities.

India climbed to 39th in the Global Innovation Index (2024), driven by an uptick in patent filings and advancements in space tech. The 2025 Union Budget announced a ₹1 lakh crore fund to boost private R&D and a ₹1,000 crore VC fund for the space economy. Yet, Minister Piyush Goyal’s remarks on startups point to a deeper issue: a lack of market-ready innovation.

States like Jammu & Kashmir and Punjab surprisingly lead in R&D-to-GDP ratios, while 12 states contribute negligibly. India also rose to 36th in the Frontier Technologies Readiness Index, showing promise in AI and sustainable tech.

For India to truly lead globally, it must catalyze private investment, balance state-level disparities, and strengthen academia-industry collaboration.