The CII–DSIR Study on “Strengthening the Funding Mechanism for Industrial R&D and Innovation in India” aims to generate actionable insights and policy recommendations to strengthen the country’s industrial R&D ecosystem. India’s gross expenditure on R&D (GERD) stood at approximately ₹ 1.27 lakh crore in FY 2020-21, accounting for only 0.64% of GDP—significantly lower than global peers such as China (~ 2.4%) and the United States (~ 3.5%).A.
The study focuses on analyzing sectoral R&D investment trends, evaluating the effectiveness of existing policy instruments and funding mechanisms, and benchmarking India’s performance against leading R&D-intensive economies. It further seeks to identify gaps in industrial R&D infrastructure, strengthen academia–industry collaboration, and explore innovative financing mechanisms including venture capital, public–private partnerships, and crowdfunding.
The outcomes will contribute to the development of a strategic policy framework aimed at increasing private sector R&D intensity, enhancing industrial innovation capacity, and reinforcing India’s position as a global hub for research and technological advancement.

