Meaning and Measurement
Gross Expenditure on Research and Development, commonly known as GERD, represents the total expenditure incurred on research and experimental development within a country during a given period.
It includes spending by:
- government research institutions;
- higher-education institutions;
- public-sector enterprises;
- private businesses;
- non-profit organisations.
GERD covers both current expenditure, such as salaries and laboratory materials, and capital expenditure on research infrastructure and equipment.
It is commonly expressed as a percentage of Gross Domestic Product:
GERD intensity = Total national R&D expenditure ÷ GDP × 100
Components
GERD is classified according to the institutions performing research.
Government sector
It includes expenditure by scientific departments, research laboratories and public institutions.
Business enterprise sector
It includes research undertaken by private companies and public-sector enterprises for developing products, processes and technologies.
Higher-education sector
It covers research conducted by universities, colleges and specialised academic institutions.
Private non-profit sector
It includes research undertaken by independent foundations, associations and non-profit institutions.
GERD measures where research is performed, irrespective of whether the funding originated domestically or from a foreign source.
Position in India
India’s total expenditure on research and development has increased in absolute terms, but its share in GDP has remained relatively low.
The latest officially available detailed statistics place India’s GERD at around 0.64% of GDP in 2020–21. More recent government statements broadly place it within the range of 0.6–0.7% of GDP.
Government institutions continue to account for a large proportion of national research expenditure, while the contribution of the private business sector remains comparatively limited.
India performs strongly in areas such as:
- space technology;
- atomic energy;
- pharmaceuticals;
- information technology;
- agriculture;
- biotechnology;
- defence research.
However, research capacity remains concentrated in a limited number of institutions, cities and industrial sectors.
Importance and Challenges
Higher research expenditure can promote:
- technological innovation;
- productivity and economic growth;
- domestic manufacturing;
- national security;
- climate and health solutions;
- high-skilled employment;
- reduced dependence on imported technology.
Major constraints include:
- limited private-sector investment;
- weak university–industry collaboration;
- inadequate research infrastructure;
- shortage of stable research careers;
- delays in funding and procurement;
- low commercialisation of research;
- regional concentration of institutions;
- weak linkages between patents and industrial production.
The quality and outcomes of expenditure are as important as its total volume. Higher spending without strong institutions, accountability and collaboration may not produce effective innovation.
Measures Required
India requires a wider and more diversified research ecosystem.
Important measures include:
- increasing public investment in basic research;
- encouraging private-sector research through incentives and partnerships;
- strengthening university laboratories;
- improving competitive and transparent research funding;
- promoting collaboration between academia, industry and government;
- supporting high-risk and long-term research;
- improving intellectual-property and technology-transfer systems;
- expanding research opportunities beyond major metropolitan centres.
Institutions such as the Anusandhan National Research Foundation and the Research, Development and Innovation Fund are intended to mobilise greater public and private investment in research.
Conclusion
GERD is an important indicator of a country’s commitment to scientific and technological development. India must increase both the scale and effectiveness of research expenditure while improving private participation, institutional capacity and the conversion of scientific knowledge into useful technologies.
