FY16-23: Indian companies grew 1.2x in R&D compared to global peers

According to an analysis by the Foundation for Advancing Science and Technology (FAST), Indian enterprises have surpassed global companies in research and development (R&D) growth, achieving 1.2 times the growth of their global counterparts between FY16 and FY23. However, the report also revealed that Indian firms underperformed in R&D intensity, which measures the ratio of R&D investment to revenue, across all sectors studied during this period. In terms of R&D growth, Indian firms outpaced global companies in aerospace and defence, automobiles, chemicals, and energy, while global firms excelled in the pharmaceutical and software sectors.

The study also noted that Indian firms consistently scored higher on R&D disclosures compared to global firms, with an average disclosure score of 6.2 out of 10, versus 3.7 for global firms. The study compared innovation and R&D efforts across key sectors—Aerospace & Defence, Automobiles, Chemicals, Energy, Pharmaceuticals, and Software—selecting 20 companies from each sector, 10 Indian and 10 internationals.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.