New Delhi: In less than two decades, India has expanded its expertise in critical technologies research, including robotics, quantum computing, gene technology and artificial intelligence, climbing the Critical Technology Tracker, published by the Australian Strategic Policy Institute, according to the Economic Survey 2025-26 highlighted.
Despite dipping its toes into new research areas, India’s investment in research and development remains low.
“India is establishing itself as a strong contender in critical technologies,” the economiccriti survey tabled before the Parliament on 29 January read.
As per the CTT, India ranks among the top five countries in 45 out of 64 critical technologies. This marks a major improvement from 2003 to 2007, when India was investing in just four critical technologies.
In the latest ASPI rankings for critical technologies research output, India came second in mesh and infrastructure-independent networks, advanced composite materials, and biofuels. And stood third globally in advanced aircraft engines and autonomous underwater vehicles, and in post-quantum cryptography; fourth in drones, swarming, and collaborative robots.
Low investment in R&D
The nationwide survey also pointed to low investment and expenditure in R&D in India.
“Despite notable progress in research and development, challenges remain, primarily concerning R&D expenditure intensity,” the survey read.
India’s gross expenditure on R&D (GERD) as a percentage of GDP stands at a modest 0.64 per cent, substantially below the global average of 2.71 per cent.
“Leading economies, such as the US (3.48 per cent), China (2.43 per cent), and South Korea (4.91 per cent), invest significantly more,” the report added.
The survey also noted that the low R&D expenditure is partly due to low business-sector investment, which accounts for only 41per cent of the total expenditure.
This, the survey noted, is in stark contrast to countries such as China (77 per cent), the US (75 per cent), and South Korea (79 per cent), where business sector contributions to R&D are higher.
“Bridging this disparity through various measures and fostering a conducive environment for the private industry is critical for accelerating technological development. To drive this endeavour, the government has instituted a series of high-stakes, mission-driven initiatives,” the 2025-26 survey read.
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New policies
Over the last three years, the Centre has tried to boost the research ecosystem in the country, through policies like the Anusandhan National Research Foundation (ANRF) under the ANRF Act 2023, and set up the new Research, Development and Innovation (RDI) Fund with a total outlay of R1 lakh crore over six years and Rs 20,000 crore allocated for this financial year.
“The effectiveness of India’s innovation reforms depends on adopting a balanced, systemwide approach across the science and technology ecosystem, supported by robust governance frameworks, clear performance metrics, and transparent delivery and accountability mechanisms,” the survey read.
(Edited by Insha Jalil Waziri)