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

Indian enterprises outpaced global companies in terms of research and development (R&D) growth and witnessed 1.2x growth compared to global counterparts, between the period of FY16-23, according to an analysis by Foundation for Advancing Science and Technology (FAST). 

The report, however also found out that in terms of research and development (R&D) intensity, Indian firms under-performed global firms in all sectors studied, between the period of FY16-23. R&D intensity is the ratio of a firm’s R&D investment to its revenue.

 

In terms of R&D growth, Indian firms outperformed global companies across four sectors, aerospace and defence, automobile and parts, chemicals, and energy, whereas the growth of global firms was better than Indian firms in the pharmaceutical and software sectors.
 

Indian firms consistently score higher on R&D disclosures as compared to global firms, said the study. Out of 10, the average Indian R&D disclosure score was 6.2, while global firms’ average score was 3.7.
 

The study compared innovation and R&D between Indian and global firms across key sectors, Aerospace & Defense, Automobiles, Chemicals, Energy, Pharmaceuticals, and Software. 20 companies from each sector were selected, 10 Indian and 10 international.