India's research landscape presents a striking paradox: the country ranks third globally in scientific publications, yet its Gross Expenditure on Research and Development (GERD)—the total national spend on R&D expressed as a percentage of Gross Domestic Product (GDP)—remains stubbornly low at 0.64%. This figure has hovered around 0.6-0.7% for decades, far below the global average of 1.79% and leaders like Israel (over 5%), the United States (3.5%), and China (2.4%). Amid this stagnation, recent initiatives like the ₹1 lakh crore Research, Development, and Innovation (RDI) Fund and the IndiaAI Mission signal a determined push to elevate research output, particularly in universities and align it with pressing market needs in areas such as artificial intelligence, deep tech, and biotechnology.

These efforts come at a critical juncture. With India's economy projected to become the world's third-largest by 2030, boosting R&D is essential for fostering homegrown innovations that drive economic growth, job creation, and technological self-reliance—or Viksit Bharat. However, the low GERD underscores deeper structural issues, including limited private sector involvement and fragmented funding. For academics and researchers eyeing research jobs in Indian higher education, understanding these dynamics offers insights into emerging opportunities.

Decoding GERD: India's R&D Spending in Context

Gross Expenditure on Research and Development (GERD) measures a nation's commitment to innovation by capturing all public and private spending on creative work aimed at advancing knowledge and developing new applications. In India, this stood at approximately ₹1.27 lakh crore in 2020-21, translating to just 0.64% of GDP according to the latest Economic Survey 2025-26. Government sources contribute about 64%, with the central government alone accounting for 43.7%, while the private sector lags at 36%—a sharp contrast to advanced economies where businesses fund 50-70% or more.

This composition reveals why India's research volume is high but often critiqued for lacking depth. Universities like the Indian Institutes of Technology (IITs) and Indian Institute of Science (IISc) produce prolific outputs, but without robust industry ties, much remains academic rather than market-translatable. The result? India leads in publication quantity—third globally with over 195,000 articles in 2024—but trails in high-impact citations and patents per researcher.

Historical Stagnation and Global Benchmarks

India's GERD has barely budged since the early 2000s, fluctuating between 0.6% and 0.7% despite economic booms. From ₹60,196 crore in 2010-11, it doubled nominally by 2020-21, but as a GDP share, it dipped slightly. Per capita R&D spend rose modestly from PPP$29.2 to $42 over the period, underscoring inefficiency.

Comparatively:

• South Korea: 4.8% of GDP, fueling giants like Samsung.
• Germany: 3.1%, underpinning its engineering prowess.
• China: 2.4%, propelling it to second in absolute R&D spend ($600B+).
• India: 0.64%, ranking seventh in absolute terms at $75.7B but low intensity.

This gap hampers India's climb in the Global Innovation Index, where it rose from 66th in 2019 to 38th in 2025—impressive, yet insufficient for leadership in frontier tech.

The ₹1 Lakh Crore RDI Fund: A Private Sector Catalyst

Launched by Prime Minister Narendra Modi in November 2025 under the Anusandhan National Research Foundation (ANRF)—established via the ANRF Act 2023—the RDI Fund marks a paradigm shift. With a ₹1 lakh crore corpus as a Special Purpose Fund (SPF), it offers concessional financing, risk capital, and grants for deep-tech R&D, targeting private-led projects in AI, semiconductors, space, and biotech.

The first call, inaugurated by Science Minister Dr. Jitendra Singh in February 2026, invites proposals for high-risk innovations. Union Budget 2026-27 allocates ₹20,000 crore initially, emphasizing 50-year interest-free loans for sunrise technologies. By partnering academia with industry, it aims to flip the private contribution script, fostering university spin-offs and patents. Early focus areas include advanced manufacturing and clean energy, where IITs are already collaborating via schemes like SERB-FIRE (Fund for Industrial Research Engagement).

For aspiring professors and postdocs, this opens doors to funded projects; explore postdoc opportunities tied to these initiatives.

IndiaAI Mission: Supercharging AI Research Outputs

Approved in March 2024 with ₹10,372 crore over five years, the IndiaAI Mission democratizes AI via seven pillars: compute infrastructure (38,000+ GPUs onboarded), datasets, application development, startups, skills, safe AI, and R&D. It has shortlisted 12 teams for indigenous Large Language Models (LLMs), approved 30 AI pilots, and established 27 AI Centers of Excellence (CoEs) in universities.

Budget 2026 trims FY26-27 allocation to ₹1,000 crore from ₹2,000 crore prior, but momentum persists with $11.1 billion private AI investments since 2013. For research publications, it funds grants for foundational models and responsible AI, boosting outputs in machine learning from institutions like IIT Madras. This mission directly tackles market misalignment by prioritizing deployable AI for healthcare, agriculture, and governance.

Boosting Research Publications: Quantity to Quality Shift

India's publication surge—from 34,000 in 2010 to 195,000 in 2024—stems from public funding and PhD growth (40,813 S&E doctorates in 2018-19, third globally). Domestic patents tripled to 68,176 by 2024-25. Yet, low GERD correlates with quality gaps: predatory journals inflate volume, while citation impacts lag peers.

Initiatives like ANRF's SERB-SURE for state universities and DBT-BIRAC for biotech aim to elevate standards. RDI Fund targets translational research, promising more high-impact papers. IISc Bengaluru and IIT Delhi lead, with collaborations yielding breakthroughs in quantum computing and cancer genomics.

Case Studies: University-Led Innovations

At IIT Madras, the Bharat Cancer Genome Atlas leverages IndiaAI compute for pediatric oncology research, publishing in top journals. IISc's transhumance studies on Gaddi goats integrate AI for sustainable agriculture, funded via DST grants.

NIRMA University's AI privacy work in Knowledge-Based Systems exemplifies private-academia synergy. These cases show how targeted funding yields market-relevant outputs, from bacteria-based Mars bricks (Shubhanshu Shukla's PLOS One paper) to immune cell insights in breast cancer.

Prospective researchers can find aligned professor jobs advancing such frontiers.

Persistent Challenges and Stakeholder Perspectives

Despite promise, hurdles remain: bureaucratic delays, weak IP frameworks, and risk-averse firms deter private spend. Experts like those from Deloitte urge tax incentives and CoEs. Seven leading scientists praised Budget 2026's missions but flagged core funding gaps.

Private sector views emphasize PPPs; academics call for freer grants. Solutions include technology forecasting, outcome-based monitoring, and global tie-ups like EU-India Horizon Europe.

Photo by katsuma tanaka on Unsplash

Future Outlook: Toward 2% GERD and Beyond

RDI and IndiaAI could propel GERD to 2% by 2035 if private share hits 60%. Expect surges in deep-tech publications, unicorn startups from unis, and jobs in R&D. For career growth, platforms like higher ed career advice offer tips on navigating these shifts.

India's path demands sustained policy, from skilling 1 crore AI professionals to incubators. Success here positions universities as innovation hubs, aligning research with market demands for a Viksit Bharat.

Explore rate my professor, higher ed jobs, and university jobs to join this transformation.