India’s R&D spend is below 1% of GDP

BENGALURU: India’s R&D spend is an abysmal 0.64 per cent of GDP, lagging far behind Israel and other nations,Tarun Sharma, deputy managing director of Export-Import Bank of India, lamented on Tuesday.

Presenting critical insights at a CII event, he said India may have moved from 81st position in the Global Innovation Index in 2015 to 38th in 2025, charting significant progress, but enormous headroom remains.

He emphasised India’s R&D spend is way behind Israel (6 per cent), South Korea (5.25 per cent), and China (2.6 per cent). “If we resist adoption of AI, digital twins, and robotics, we could lose around $270 billion by 2030 and around $1trillion by 2047,” he sought to point out.

“We are looking at 25 sectors and 5 clusters: pharma, auto, electronics, electrical, petrochemical, textiles, and others. The key enablers are innovation technology, artificial intelligence, digital twins, robotics, automation, and advanced materials,” added Tarun Sharma.

The 33rd CII Excellence Summit 2025 organised by the CII Institute of Quality, brought together over 1,000 quality champions and business leaders committed to elevating Indian manufacturing from 3 per cent to around 25 per cent of global output while creating around 100 million jobs and establishing India among the world’s top three manufacturing hubs.

Quality is not just a technical requirement; it is a national priority and the key determinant of how our industry is perceived globally, said Sanjay Garg, director general of the Bureau of Indian Standards.

Venu Srinivasan, chairman emeritus of TVS Motor Company, was chosen for the prestigious CII Quality Ratna Award 2025.

Accepting the honour, Srinivasan shared that quality begins with trust. “Technology and social aspirations are driving new products and services. Designs should be led by the customers, a deep understanding of customer requirements is necessary before you design a product or a service,” he added.