Advantage India
Robust
Demand
*The country remains among the top three countries in scientific publication as per NSF database and in terms of no of PhDs, in size of Higher Education System; as well as in terms of number of Start-ups.
* The rate of Artificial Intelligence (AI) adoption in key industries across India reached approximately 48% in FY24, with expectations to expand by an additional 5-7% in FY25.
Attractive
Opportunities
* In a key milestone for India’s semiconductor ecosystem, the Indian Institute of Technology Madras and ISRO have jointly developed and successfully booted an indigenous semiconductor chip—the RISC–V Controller for Space Applications (IRIS)—signaling strong domestic R&D capabilities and new opportunities in space–tech hardware.
* With the global drone market projected to reach Rs. 4,58,946 crore (US$ 54 billion) by 2025, India stands to capture a substantial share, potentially reaching Rs. 35,696 crore (US$ 4.2 billion) and expanding to Rs. 195,477 crore (US$ 23 billion) by 2030, according to the EY - FICCI report "Making India the drone hub of the world.
* India’s AI market is growing at a CAGR of 25-35% and is projected to reach around US$17 billion by 2027.
*Between 2010 and 2025, over 86,000 AI-related patents were filed in India, representing more than 25% of all technology patents in the country. The number of AI patents filed from 2021 to 2025 was seven times higher than the filings between 2010 and 2015. Of these, 63% originated in India.
Policy
Support
* DST has been pioneer in establishing a network of Technology Business Incubators (TBI) and Science & Technology Entrepreneur’s Parks (STEP) across the country under the National Initiative for Developing and Harnessing Innovations (NIDHI) program.
* India will establish a National Research Foundation (Anusadhan NRF) to transform research and development. Once operational, it will bridge public and private sectors, fostering collaboration between industry and academia.
Rising
Private Activity
* In tune with Prime Minister, Mr. Narendra Modi’s vision of National Hydrogen Mission (NHM), M/s Multi Nano Sense Technologies Private Limited, Maharashtra has come up with plan to manufacturing of Hydrogen sensors indigenously.
* For actual benefit of Prime Minister’s Atal Bhujal Yojana (Atal Jal), a Jharkhand based startup, M/s Kritsnam Technologies Private Limited are developing ‘Dhaara Smart Flowmeter’ - an integrated system for online monitoring that is designed to track the water distribution in real-time.
*India secured Rs. 11,943 crore (US$ 1.4 billion) in private artificial intelligence (AI) investment in 2023, ranking 10th globally.
Introduction
Modern India has had a strong focus on science and technology, realizing that it is a key element for economic growth. India ranks third among the most attractive investment destinations for technology transactions in the world. With more and more multinational companies setting up their R&D centres in India, the sector has seen an uptrend in investment in recent years.
India is among the top countries globally in the field of scientific research, positioned as one of the top five nations in the field of space exploration. The country has regularly undertaken space missions, including missions to the moon and the famed Polar Satellite Launch Vehicle (PSLV). India is likely to take a leading role in launching satellites for the SAARC nations, generating revenue by offering its space facilities for use to other countries.
The government has introduced multiple policies aimed at projecting India as a science and technology powerhouse and promoting both public and private sector involvement in the R&D practice. As a result, India’s gross expenditure on R&D (GERD) has been consistently increasing over the years. The government has also implemented several fellowship schemes to nurture the human capacity for advanced research in the country.
Spending in the Indian Information Technology (IT) sector is projected to reach US$ 138.9 billion in 2024, compared to US$ 122.6 billion last year, with a double-digit growth rate of 13.2%.
Market size
The engineering R&D and product development market in India is forecast to post a CAGR of 12% to reach US$ 63 billion by 2025, from US$ 31 billion in 2019. As per the Economic Survey 2022, India’s gross domestic expenditure on R&D (GERD) as a percentage of GDP stood at 0.66%.
With over 1.59 lakh Department for Promotion of Industry and Internal Trade (DPIIT)-recognized startups (as of January 15, 2025), India ranks as the world’s third-largest startup ecosystem. Space startups raised Rs. 16,072 crore (US$ 1.9 billion) in the third quarter of FY25, up nearly a fifth from a year earlier, fueled by strong investor interest in rocket launchers and satellite manufacturers, according to a Seraphim Space report.
With a workforce of 5.8 million professionals, India accounts for 28% of the global Science, Technology, Engineering, and Mathematics (STEM) talent pool and 23% of the world's software engineering professionals. India is home to 34,000 technology startups, including 3,600 deep-tech startups, driving innovation in artificial intelligence (AI) and quantum computing.
India's information technology (IT) industry is projected to close FY25 with a valuation of Rs. 24,43,988 crore (US$ 283 billion), surpassing Rs. 25,90,800 crore (US$ 300 billion) in FY26.
India's technology sector is set to play a crucial role in the country’s goal of becoming a Rs. 5,97,17,000 crore (US$ 7 trillion) economy by 2030, contributing around Rs. 85,31,000 crore (US$ 1 trillion) to the Gross Domestic Product (GDP).
India’s job market remained resilient in Q4 FY25, with 82% of employers actively hiring. Demand was highest for roles in software development (29%), data analytics and science (26%), and sales (23%), reflecting the industry’s growing shift toward digital and tech-driven skill sets.
India's gross expenditure on R&D (GERD) as a percentage of GDP has remained stagnant at around 0.7% for about a decade, lower than Brazil (1.16%), South Africa (0.83%) and others.
IT spending in India will grow 10.7% YoY to reach US$ 124.6 billion in 2024, as forecasted by Gartner. India’s bioeconomy was valued at US$ 137 billion in 2022 and aims to achieve US$ 300 billion mark by 2030.
In FY21, the science and technology sector added 1,497,501 employees, becoming India’s top employment generator.
The Union Budget 2025-26 allocates Rs. 20,000 crore (US$ 2.33 billion), to launch a Rs. 1,00,000 crore (US$ 11.82 billion) private sector–driven R&D fund. This initiative aims to boost innovation in deep tech and sunrise sectors, enhancing India’s strategic autonomy in key technology areas.
The India AI Mission has been allocated a budget of around Rs. 2,000 crore (US$ 236.4 million), in 2025-26, a massive increase from Rs. 173 crore (US$ 8.6 million) in 2024-25.
Under the Interim Budget 2024-25, the government announced an allocation of Rs. 8,029 crore (US$ 966 million) to the Department of Science and Technology and Rs. 16,604 crore (US$ 2 billion) to the Ministry of Science and Technology.
In the Interim Budget 2024-25, the government announced corpus of Rs. 1 lakh crore (US$ 12 billion) to promote Innovation and StartUps coupled with a new scheme for Deep Tech StartUps in Defence.
According to Commerce and Industry Minister, Mr. Piyush Goyal, the Indian patent office has granted the "highest" number of 41,010 patents till November 15th, 2023.
The Indian Patent Office has crossed the one lakh mark for the first time this year, with 1,01,311 patents being granted by the department between March 15, 2023, to March 14, 2024, reflecting the government efforts to enhance the intellectual property rights framework.
India is ranked in 7th position in terms of Resident Patent Filing activity in the world.
In India, there are more than 1,580 Global Capability Centres (GCCs), where companies can outsource their product development and receive product engineering services, with the GCC market size crossing US$ 46 billion (as of FY23). These GCCs are home to some of the largest companies, many of which have their largest or second-largest R&D centres located in the country.
Accenture offers a framework for assessing the economic effect of AI for selected G20 countries in its latest AI research studies and forecasts that AI will raise India's annual growth rate by 1.3% by 2035. India's National Artificial Intelligence Strategy prepared by NITI Aayog outlined a way forward to harness the potential of Artificial Intelligence (AI) in different fields. State University Research Excellence (SERB-SURE) to create a robust R&D ecosystem in state universities and colleges; Fund for Industrial Research Engagement (SERB-FIRE) to support research and development to solve critical problems that are relevant to industries in a public-private partnership mode.
Developments/Investments
Some of the recent developments in the field of science and technology in India are as follows:
- India plans to launch a constellation of 52 satellites over the next five years to enhance its space-based surveillance capabilities, according to the Chairman of the Indian National Space Promotion and Authorisation Centre (IN-SPACe), Mr. Pawan Kumar Goenka.
- Daikin, the Japanese air-conditioning giant, has invested Rs. 500 crore (US$ 58.3 million) in a new R&D center in Neemrana, Rajasthan, to develop products for export. This facility, employing over 500 people, will be Daikin's third R&D center in India. It will focus on tailoring HVACR solutions to meet energy standards and technological advancements, enhancing synergy with the existing manufacturing plant.
- Databricks, a leading data and artificial intelligence (AI) company, announced on April 24, 2025, a strategic investment of over Rs. 2,133 crore (US$ 250 million) in India over the next three years. This investment will focus on accelerating innovation in data and AI, with a significant emphasis on training, research and development (R&D), and go-to-market activities.
- IISc researchers develop bacteria to repair bricks in space. A sample of the bacteria may now be sent to space as part of the Gaganyaan mission to study its behaviour in microgravity. With India planning future manned lunar missions, this development could play a crucial role in developing sustainable, self-repairing habitats on the moon.
- In a key milestone for India’s semiconductor ecosystem, the Indian Institute of Technology Madras and ISRO have jointly developed and successfully booted an indigenous semiconductor chip—the RISC–V Controller for Space Applications (IRIS)—signaling strong domestic R&D capabilities and new opportunities in space–tech hardware.
- U.S.-based chip toolmaker Lam Research will invest over Rs. 100 billion ($1.2 billion) in Karnataka to strengthen India's semiconductor ecosystem.
- Hyundai set to up R&D investment in India under second phase growth strategy. IPO bound Korean major plans to invest Rs. 32,000 crore (US$ 3.72 billion) over the next eight to10 years.
- Taiwan's Delta Electronics is set to nearly double its Indian workforce from 3,500 to 6,500 employees over the next five years. The company has opened its largest research center in Bengaluru and plans a Rs. 4,300 crore(US$ 500 million) investment.
- NXP Semiconductors to invest more than Rs. 8,459 crore (US$ 1 billion) in India as it boosts R&D efforts.
- Number of patents granted increased seventeen-fold from 5,978 in 2014-15 to 1,03,057 in 2023-24.
- India is poised to establish itself as a global hub for drone technology, a development that is anticipated to significantly enhance the Indian economy. This initiative aligns with the government's Make in India and Atmanirbhar Bharat programs, as emphasized by Union Minister of Defence, Mr. Rajnath Singh.
- India's space ambitions include plans to establish its own space station, the "Bharatiya Antariksh Station," by 2035, along with aspirations for an Indian lunar landing by 2040. This announcement was made by the Union Minister of State (Independent Charge) for Science and Technology.
- Researchers have developed a novel technology for the precise detection of the HIV genome by targeting G-Quadruplex (GQ) structures, which are unique four-stranded DNA formations. Utilizing tailored fluorogenic tests, this diagnostic platform enhances reliability and significantly reduces false positives in HIV detection, improving overall diagnostic accuracy.
- Union budget FY25 announces venture capital fund of US$ 119.5 million (Rs. 1,000 crore) will be established to expand the space economy by 5 times over the next decade.
- Union Minister Mr. Jitendra Singh announced that India will establish a National Research Foundation (Anusadhan NRF) to transform research and development. Once operational, it will bridge public and private sectors, fostering collaboration between industry and academia.
- As per Bain and Company healthcare innovation in India is currently a US$ 30 billion and Poised to become an approximately US$ 60 billion opportunity by FY28.
- Tata Electronics, with Powerchip Semiconductor Manufacturing Corp (PSMC) Taiwan, will establish a US$ 11 billion (Rs. 91,000 crore) semiconductor unit in Gujarat, generating 20,000 skilled jobs. Additionally, Tata's TSAT, along with two large American conglomerates, will invest US$ 3.3 billion (Rs. 27,000 crore) in a semiconductor plant in Assam, creating 27,000 jobs. CG Power, in partnership with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand, will set up a semiconductor unit in Gujarat with an investment of ~US$ 915 million (Rs. 7,600 crore).
- In November 2023, Lupin Ltd. unveiled world’s first fixed-dose triple combination drug for managing chronic obstructive pulmonary disease (COPD).
- In October 2023, Glenmark Pharmaceuticals introduced Zita, a cost-effective triple combination drug for Type 2 diabetes treatment, enhancing glycemic control in diabetic patients.
- Under the National Mission on Interdisciplinary Cyber Physical System (NM-ICPS), 25 Technology Innovation Hubs (TIHs) have been established in the areas of advanced technologies which carry out their activities under 4 major categories, i.e. Technology Development, Human Resource Development, Entrepreneurship Development and Industrial Collaborations. Mission has developed 311 technologies, 549 technology products, 63000+ Human Resource, 1200 Jobs creation and nearly 124 international collaborations till December 2023.
- A total of 192 training programs were organized under this Scheme during the year 2022 and around 8,573 researchers have been trained under Synergistic Training program Utilizing the Scientific and Technological Infrastructure (STUTI).
- In October 2023, the Anusandhan National Research Foundation (NRF) will promote the culture of research and innovation throughout India’s universities, colleges, research institutions, and R&D laboratories and give further impetus to clean energy research in India and Mission Innovation, according to Union Minister, Dr. Jitendra Singh.
- In September 2023, Agri-startups were recommended for technical & financial support from pool of Rs. 20 crore (US$ 2.40 million).
- The National Centre for Good Governance (NCGG) and the Indian National Science Academy (INSA) have joined hands and have launched the ‘NCGG – INSA Leadership Programme in Science & Technology (LEADS). Recognizing the critical role played by the scientific leadership in driving scientific progress, this joint initiative seeks to empower them with the tools and capabilities required to effectively lead and navigate the rapidly evolving landscape of science and technology.
Government Initiatives
Some of the recent initiatives taken by the Government of India to promote science and technology in India are:
- The Ministry of Commerce and Industry will allocate a significant portion of the second Rs. 10,000 crore (US$ 1.16 billion) Fund of Funds Scheme (FFS) to support budding entrepreneurs, particularly in sectors like new-age technology, artificial intelligence (AI), and machine building, as per an official statement.
- The Government of India has significantly increased funding for the Vigyan Dhara scheme, reinforcing its commitment to scientific research, innovation, and technological development. The budget allocation has risen from Rs. 330.75 crore (US$ 38.21 million) in FY25 to Rs. 1,425 crore (US$ 164.63 million) in FY26, with a total outlay of Rs. 10,579.84 crore (US$ 1.22 billion) for FY22 to FY26 under the 15th Finance Commission.
- In the Interim Budget 2024-25, the government announced corpus of Rs. 1 lakh crore (US$ 12 billion) to promote Innovation and StartUps coupled with a new scheme for Deep Tech StartUps in Defence.
- In 2023, The National Quantum Mission (NQM) was launched with a budget of ~US$ 726 million (Rs. 6003.65 crore) spanning from 2023-24 to 2030-31 aimed at fostering scientific and industrial R&D in Quantum Technology, propelling India's leadership in Quantum Technologies & Applications.
- In October 2023, Union Minister Dr. Jitendra Singh launched state-of-art latest National Survey Network; the nationwide "Continuously Operating Reference Stations" (CORS) Network that will be operated by the Survey of India. The Survey of India has set up more than 1,000 CORS stations across India.
- Union Minister of Chemicals and Fertilizers, Dr Mansukh Mandaviya launches National Policy on Research and Development and Innovation in Pharma-MedTech Sector in India and Scheme for promotion of Research and Innovation in Pharma MedTech Sector (PRIP) in September 2023.
- The Indian Space Policy-2023: It was approved by the Cabinet Committee on Security on April 6, also permits non-government entities (NGEs) to offer national and international space-based communication services, through self-owned, procured or leased geostationary orbit (GSO) and non-geostationary satellite orbit (NGSO) satellite systems. NGSO is a reference to low earth orbit or medium earth orbits that are home to satellites providing broadband internet services from space.
- The policy also encourages NGEs to establish and operate ground facilities for space object operations, such as telemetry, tracking and command (TT&C) Earth Stations and Satellite Control Centres (SCCs).
- In 2023, Strengthening, Upscaling & Nurturing Local Innovations for Livelihood (SUNIL) Programme
- Technology delivery & enterprise creation model for improving the efficiency of the livelihood system.
- Technology interventions for Addressing Societal Needs (TIASN)
- Capacity Building of Community-based organizations (CBOs), NGOs, Knowledge Institutions (KI) & Social Start-ups
- The Technology Interventions for Disabled and Elderly (TIDE) programme is a unique initiative of DST to create inclusiveness and universal accessibility for Divyangjan and the Elderly, through the promotion and development of various assistive tools, technologies, techniques, affordable & adaptable to the Indian milieu.
- In November 2022, India announced an additional contribution of US$ 5 million to the ASEAN-India Science and Technology fund to increase cooperation in sectors of public health, renewable energy, and smart agriculture.
- In November 2022, the Department of Science and Technology (DST) and the Centre for Science and Environment (CSE) decided to work together to build a platform to support the development of new electric vehicle (EV) batteries that meet Indian regulations.
- A MoU was signed between the Department of Science and Technology (DST), the Ministry of Science and Technology & Earth Sciences, and the Ministry of Ayush. The MoU outlines potential research areas to investigate collaboration, convergence, and synergy for an evidence-based scientific intervention in the Ayush sector and further integration of these into the public health care system.
- The Indian Council of Medical Research (ICMR) has received 31 bids from manufacturers showing interest in developing the vaccine for the monkeypox virus after the medical body put out an Expression of Interest (EOI) for the development of vaccine and diagnostic kits.
- In 2021-22, African Centers of Excellence in a few specific scientific fields were strengthened by twinning with Indian institutes to carry out the Africa-India S&T Initiative Program by the Department of Science and Technology.
- The Department of Science & Technology (DST) has revamped the FIST (Fund for Improvement of S & T Infrastructure in Universities and Higher Educational Institutions) programme to align it with the objective of Atmanirbhar Bharat by developing R&D infrastructure for use by start-ups, manufacturing companies, and MSMEs, in addition to R&D operations in academic organisations.
- The Women Science programme of DST has started a new initiative to support women PG colleges under the CURIE (Consolidation of University Research for Innovation and Excellence in Women Universities) Program and invited proposals for the same.
- Under the Union Budget 2023-24, the government announced the allocation of Rs. 16,361 crore (US$ 1.99 billion) to the Department of Science and Technology.
- To further India with High-Performance Computing (HPC), four new Supercomputers have been installed since July 2021 - one each at IIT-Hyderabad, NABI-Mohali, CDAC-Bengaluru, and IIT Kanpur.
- Synergistic Training Program Utilizing the Scientific and Technological Infrastructure (STUTI), a new initiative, was recently unveiled to enhance human resource development and capacity building through nationwide open access to science and technology infrastructure.
- The Science and Engineering Research Board (SERB) has partnered with Intel India to launch a first-of-its-kind initiative to advance deep tech-based research in India.
- In November 2021, the Ministry of Science and Technology and Ministry of Earth Sciences, in association with Vijnana Bharati (VIBHA), launched the India International Science Festival 2021, a unique platform, with its theme being a celebration of creativity in science, technology and innovation for a prosperous India.
- In November 2021, Atal Innovation Mission and Vigyan Prasar collaborated to drive synergies between Atal Tinkering Labs and Vigyan Prasar’s unique platform, Engage with Science.
- In October 2021, the government announced plans to establish 75 science technology & innovation hubs in India for scheduled castes (SCs) and scheduled tribes (STs) and empower them to contribute to the socio-economic improvement of the country.
- In October 2021, the government launched the Indian Space Association (ISpA) to accelerate technology advancements and strengthen the space sector in the country.
- In October 2021, India and Denmark agreed to a five-year plan to implement a green strategic partnership for enhancing collaboration in various areas including science and technology.
- In October 2021, India and Europe held discussions to review the progress of science and technology bilateral cooperation and strengthen efforts on research and innovation.
The Road Ahead
India ranks third among the most innovative lower-middle-income economies in the world. Rising per capita income in India will bring a boom in R&D investment in the country with multiple foreign players shifting R&D bases to India. R&D investment and multiple government policies have helped Indian companies overcome tight competition with affordable products internationally.
India plans to move forward with developing its science and technology sector by collaborating with other countries. India has active bilateral science and technology (S&T) programs of cooperation with more than 45 countries, including dedicated programs for Africa, ASEAN, BRICS, EU and neighbouring countries. In 2021, India also collaborated with Denmark and agreed to a five-year plan to implement a green strategic partnership for enhancing partnerships in various areas, including science and technology.
India is aggressively working towards establishing itself as a leader in industrialization and technological development.Significant developments in the nuclear energy sector are likely as India looks to expand its nuclear capacity. Moreover, nanotechnology is expected to transform India’s pharmaceutical industry.
The agriculture sector is also likely to undergo a major revamp with the government investing heavily in a technology-driven green revolution. The Government of India, through the Science, Technology, and Innovation (STI) Policy-2013, among other things, aspires to position India among the world’s top five scientific powers.
References - Media Reports, Press Releases, Press Information Bureau (PIB), Union Budget 2022-23/ 2023-24/2024-25/2025-26, News Articles
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MOREMajor Indian States for Science and Technology
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