- Indian firms show 1.2 times more R&D growth than global counterparts from FY2016 to FY2023.
- Despite challenges, Indian firms excel in R&D-related disclosures but lag in R&D intensity and patents compared to global firms.
- The report suggests increasing R&D investments and supportive policies to enhance global competitiveness.
A report by the Foundation for Advancing Science and Technology (FAST India) in collaboration with IIFL Securities reveals that Indian firms have outperformed global giants in R&D growth. Despite challenges like the COVID-19 pandemic, Indian companies have shown 1.2 times more growth in R&D from FY2016 to FY2023.
While Indian firms excel in R&D-related disclosures, they lag behind in R&D intensity and patents compared to global counterparts. Global firms lead significantly in output parameters, generating more patents and publications per billion USD revenue. However, Indian software firms exhibit better output performance, indicating potential for growth with increased R&D investments.
The report emphasizes the need for enhancing industry R&D through supportive policies like tax incentives and increased private sector involvement. With India’s current R&D expenditure at 0.7% of GDP, leveraging state support and encouraging private sector participation are crucial steps towards enhancing global competitiveness and fostering technological innovation.
