Transport, Pharma and Biotech Emerge as India's Largest Private R&D Investors

India's private-sector research landscape is increasingly being led by the transportation, pharmaceutical, biotechnology and information technology industries, according to the Department of Science and Technology's (DST) Research and Development Statistics 2025–26. The report highlights a growing shift towards industry-led innovation, with private companies now employing more researchers than the public sector and playing a larger role in the country's expanding research ecosystem.

What Happened

India's transportation industry has emerged as the country's largest corporate investor in research and development (R&D), according to the Department of Science and Technology's (DST) Research and Development Statistics 2025–26. The report identifies transportation, pharmaceuticals, biotechnology and information technology as the principal sectors driving private-sector innovation, reflecting a significant transformation in India's research ecosystem.

The findings come shortly after the government informed Parliament that India's gross expenditure on research and development reached 0.83% of GDP in 2021–22, the highest level recorded in recent years. The latest statistics also show that industry now employs more researchers than the public sector in core R&D activities, indicating a structural shift in where scientific research is being conducted.

Why It Matters

India's innovation landscape has historically been dominated by government laboratories, universities and publicly funded research institutions. The latest data suggests that the private sector is becoming an increasingly important engine of technological development and commercial innovation.

{{Industry-led research often translates scientific discoveries into market-ready products much faster than public-sector research alone.}} The rise of transportation companies as leading R&D investors reflects the rapid technological transformation taking place across India's automotive, electric mobility, aerospace and advanced manufacturing sectors. Companies are investing heavily in battery technologies, autonomous systems, connected mobility, lightweight materials and clean-energy solutions to remain competitive in global markets. The pharmaceutical and biotechnology sectors continue to strengthen India's position as one of the world's leading producers of generic medicines, vaccines and biotechnology products. Increased investment in drug discovery, biologics, precision medicine and advanced manufacturing could improve both healthcare outcomes and export competitiveness.

Meanwhile, India's information technology industry remains central to research in artificial intelligence, cloud computing, cybersecurity, semiconductors and digital infrastructure. As businesses increasingly integrate AI and automation into products and services, corporate R&D is becoming a key driver of productivity and technological competitiveness.

The Numbers

According to the DST report:

**1.**R&D expenditure reached 0.83% of GDP in 2021–22, marking the highest level reported so far. **2.**Private industry now employs more researchers than the public sector in core research activities. **3.**Transportation, pharmaceuticals, biotechnology and information technology account for the largest share of industrial research investment.

The findings indicate a continued shift towards greater private-sector participation in India's national innovation system.

{{A stronger research ecosystem increasingly depends not only on public investment, but also on sustained private-sector innovation.}}

What's Next

The government's focus is expected to remain on increasing India's overall research intensity while encouraging greater collaboration between industry, universities and public research institutions. Policymakers have repeatedly stated their ambition of making India a global hub for advanced manufacturing, biotechnology, clean energy and deep technology.

Whether research expenditure continues to rise will depend on sustained private investment, stronger technology commercialisation and policies that encourage innovation across emerging sectors. As industry assumes a larger role in funding and conducting research, its contribution is likely to become increasingly important in shaping India's long-term economic competitiveness.