India needs research pipelines – The Hindu

India will not meet its growth ambitions on public grants alone. The countries that turned science into industry did one thing well: they matched firm outlays to campus strengths and kept that link steady for years. The policy question is clear. How do we move private research outlays from episodic Corporate Social Responsibility to a predictable pipeline that buys lab time, funds doctoral cohorts, and books pilot lines?

Global benchmarks

Leading tech firms run innovation budgets at industrial scale. In 2024, Meta’s research outlay reached about $44 billion, near a third of revenue. Alphabet, Amazon, Apple, IBM, and Microsoft also reported multibillion-dollar programmes. In the U.S., enterprises booked roughly $692 billion of domestic research against about $14 trillion in net sales in 2022, a ratio near 5%. Policy instruments translate that investment into campus partnerships. The National Science Foundation’s Industry-University Cooperative Research Centers pool company fees for pre-competitive university work. The Semiconductor Research Corporation funds multi-university consortia that train talent while tackling industry-relevant problems.

China’s Huawei reported an R&D expenditure at 179.7 billion yuan in 2024, equal to 20.8% of revenue. More than half of Huawei’s workforce is in R&D roles. Build Your Dreams , a Chinese multinational auto company, invested 54.2 billion yuan in 2024 on R&D against roughly 777 billion yuan of revenue, an intensity of nearly 7%.

These examples demonstrate one trait. Corporate research works with campuses through joint centres, shared lines, long-horizon consortia and open talent pipelines. India should scale this on Indian terms. The goal is self-reliance with open doors to global science while anchoring discovery to India’s needs. Private research outlays need size, predictability, and structured linkages with higher education institutions (HEIs).

Today, India’s Gross Domestic Expenditure on Research and Development sits near 0.65% of GDP, with enterprises funding about two-fifths. Advanced economies show a higher firm share. Yet India has bright spots. Tata Motors reported revenue of about ₹4.38 lakh crore in FY24 and R&D outlay of ₹29,398 crore, an intensity of 6.7%. Sun Pharma invested 6.7% of global revenues in R&D in FY24. Dr. Reddy’s spent ₹22.9 billion, about 8.2% of sales. Bharat Electronics dedicated 6.24% of turnover to R&D in FY24, an important signal in a strategic sector. Reliance Industries recorded over ₹4,100 crore of R&D expenditure in FY2024-25.

In terms of partnerships, India already runs strong platforms. IIT Madras Research Park hosts more than 200 companies near faculty labs and student teams, creating a daily flow of ideas and talent. The Ministry of Defence promotes startup and research lab teaming through iDEX. The India Semiconductor Mission pairs industry investments with skill pipelines and academic partnerships, as seen in the Micron ATMP project at Sanand.

Policy actions

These strands form a workable base. The task now is to scale them and set clear expectations for private R&D expenditure and university linkages across sectors. First, we must set three-year R&D-to-sales ratios for autos, pharma, electronics, defence, space and energy that climb year by year, balanced with export goals and cash-flow realities. We must use shared IP frameworks that reward publication and commercialisation together. Second, reward co-funded projects and shared facilities and offer matching grants where industry rupees flow through HEIs for multi-year projects with open data deliverables and industry-relevant key performance indicators. Create a dedicated line item for university-managed pilot lines and testbeds that industry can book by the hour. Seed multi-university centres around a portfolio of problems rather than isolated projects. Third, modernise tax instruments for research. Weighted deductions can focus on measurable outputs such as patents, standards contributions, clinical milestones or field trials. Link incentives to proof of collaboration with accredited HEIs and to hiring graduate researchers into industry roles. Fourth, teach collaboration. Support campus programmes that train faculty and PhD scholars to work with industry, negotiate IP, and run translational projects. Bring more PhDs into product groups, create dual-track roles with adjunct appointments, and sponsor doctoral cohorts aligned to corporate roadmaps. Fifth, ask listed companies to report R&D investment and the share of spend that flows to Indian HEIs. Disclosure nudges boards to treat research as strategic, not incidental. Publicise results in Indian languages and in practitioner-friendly formats. That builds prestige around research careers and attracts talent.

India’s university campuses sit next to some of the world’s most dynamic markets, and they carry knowledge traditions that examine technology as part of a broader human inquiry. When corporate research engages that heritage, solutions gain depth and context and match what high-performing corporate R&D needs.

India has the labs, talent, and markets. The task before the industry is clear: set transparent targets, match grants that buy real lab time, and collaborate better. The task before academic institutions is straightforward: shape research for measurable value, welcome industry questions, and show evidence of success. Do that, and research becomes a national supply chain, not wishful thinking.

Mamidala Jagadesh Kumar, Former Chairman, UGC and former Vice-Chancellor, JNU

Published – December 01, 2025 01:56 am IST