Higher Education in India
Research Funding and the ANRF
Why India spends relatively little on research and development, how universities fit in, and how the new Anusandhan National Research Foundation aims to change this.
Research drives innovation and growth. India’s spending on research and development has been low compared with major economies.
How much India spends
India’s gross spending on R&D has been around 0.6 to 0.7 percent of GDP, compared with over 2 percent in China and over 3 percent in the US, and even higher in South Korea and Israel.
Who funds research
- In India, the government funds a large share of R&D, mainly through agencies like the DRDO, ISRO, CSIR and DST.
- Private companies fund a smaller share than in most advanced economies.
- Universities get limited research funding; much research happens in government labs and top institutes.
The ANRF
The Anusandhan National Research Foundation Act, 2023 created the ANRF, modelled partly on the US National Science Foundation. It aims to:
- Fund research in universities and colleges, not just elite institutions.
- Encourage private sector contributions to research funding.
- Support research across sciences, engineering, social sciences and humanities.
A large Research, Development and Innovation Fund was announced in 2025 to support private-sector R&D.
Why universities matter
Research universities train scientists, produce new knowledge and create startups and spillovers to industry.
Challenges
- Bureaucracy in grants.
- Brain drain of top researchers.
- Limited PhD stipends and infrastructure.
A state university professor wins an ANRF grant to study crop disease. She hires PhD students and partners with a seed company, producing research that helps farmers and trains young scientists.
Research universities are central to innovation and training scientists; India aims to strengthen them.
- India spends around 0.6 to 0.7 percent of GDP on R&D, far below leaders.
- Government funds most Indian R&D; private share is small.
- The ANRF Act (2023) aims to broaden research funding.
- Bureaucracy, brain drain and limited stipends are challenges.
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