Introduction
India ranks third among the most attractive investment destinations for technology transactions in the world. Modern India has had a strong focus on science and technology, realising that it is a key element for economic growth. India is among the topmost countries in the world in the field of scientific research, positioned as one of the top five nations in the field for space exploration. The country has regularly undertaken space missions, including missions to the moon and the famed Polar Satellite Launch Vehicle (PSLV).
India is likely to take a leading role in launching satellites for the SAARC nations, generating revenue by offering its space facilities for use to other countries.

Market size
India now ranks 39th among 133 countries in the Global Innovation Index (GII) 2024, marking a significant improvement from its 81st position in 2015. The Government is extensively promoting research parks technology business incubators (TBIs) and (RPs), which would promote the innovative ideas till they become commercial ventures.
India's gross expenditure in R&D was forecast to reach US$ 96.50 billion in 2020. By 2022, R&D expenditure is targeted to reach at least 2 per cent of the country's GDP. The engineering R&D and product development market in India is forecast to post a CAGR of ~12% to reach US$ 63 billion by 2025, from US$ 31 billion in 2019.
IT spending in India is estimated to reach US$ 93 billion in 2021 (7.3% YoY growth) and further increase to US$ 98.5 billion in 2022.
India's National Artificial Intelligence Strategy prepared by NITI Aayog outlined a way forward to harness the potential of Artificial Intelligence (AI) in different fields. Accenture offers a framework for assessing the economic effect of AI for selected G20 countries in its latest AI research studies and forecast that AI will raise India's annual growth rate by 1.3% points by 2035.
India ranked 39th in the Global Innovation Index for 2024. In the Bloomberg Innovation Index, 2021, India ranked 50th in terms of innovations. In South Asia, India is the only country to be represented on the index. India ranks 10th in the Global Cybersecurity Index 2020 that was launched by the International Telecommunication Union.
Developments/Investments
With support from the Government, considerable investment and development has incurred in different sectors such as agriculture, healthcare, space research, and nuclear power through scientific research. For instance, India is gradually becoming self-reliant in nuclear technology.
Recent Developments
- In December 2025, the Ministry of Science and Technology, Ministry of Earth Sciences, and other partners organized the 11th India International Science Festival (IISF) in Panchkula, Haryana (with curtain-raiser events earlier). The theme was "Vigyan Se Samruddhi: for Aatmanirbhar Bharat," emphasizing science-led self-reliance, innovation, and public outreach in the Amrit Kaal, attracting thousands of participants.
- In March 2024, ISRO launched the INSAT-3DS satellite to enhance weather forecasting, disaster warning, and climate monitoring capabilities. It was launched using GSLV-F14 from Sriharikota.
- In July 2023, ISRO successfully launched Chandrayaan-3 and made history by becoming the first country to land near the Moon's South Pole.
- In September 2023, India launched Aditya-L1, its first solar mission, to study the Sun's corona and solar winds, marking a major milestone in heliophysics research.
- In October 2023, the Indian government launched the National Quantum Mission (NQM) with a budget outlay of ₹6,003.65 crore (2023-2031) to nurture a quantum technology ecosystem. By 2026, progress includes Thematic Hubs, a national quantum-safe security roadmap (phased adoption by 2027-2033), and advancements toward quantum-resilient systems in critical sectors.
- In January 2024, DRDO successfully tested the Agni-V missile with MIRV technology, enabling a single missile to target multiple locations.
- In February 2024, India launched the Anusandhan National Research Foundation (NRF/ANRF) with a ₹50,000 crore budget over five years to boost high-impact scientific research in public and private sectors; support continues in 2026-27 via linked funds like RDI.
- As of 2025-2026, India has seen continued growth in R&D presence, with major global firms establishing centers, and improvements in global innovation rankings (e.g., rising positions in indices).
- In April 2024, the Indian Space Association (ISpA) announced its roadmap for boosting private space launches, satellite manufacturing, and space-based applications; momentum continued with private sector involvement in 2025-2026.
- India and Denmark continue to strengthen their Green Strategic Partnership through joint initiatives like the Smart Laboratory on Clean Rivers (SLCR) in Varanasi for river rejuvenation using sustainable technologies.
- In December 2023, the Atal Innovation Mission launched a nationwide campaign to scale up Atal Tinkering Labs and integrate AI-based learning modules for school-level innovation; expansions continued into 2025-2026.
- Under the Deep Ocean Mission (Samudrayaan), the Matsya-6000 manned submersible achieved key milestones: design completion, subsystem realization, wet tests in Chennai harbour (January-February 2025), pilot training with France's NAUTILE (August 2025), and preparations for shallow/deep tests leading toward 6,000-meter dives by 2026-2027.
- As of 2025-2026, India operates over 30 gamma radiation processing plants for food preservation and medical sterilization, with growing private sector participation.
- The Department of Science and Technology and NASSCOM continue their Lab2Market initiative, focusing on AI, semiconductors, and biotechnology; 2025-2026 saw emphasis on indigenous chip design (e.g., Vikram series) and sovereign AI efforts.
- Patent filings have maintained strong growth trends since 2014, with continued year-on-year increases supporting innovation.
- DRDO has enhanced anti-drone technology with AI-based autonomous interception systems deployed for border and defense use; additional advancements in 2025 include next-generation missile trials (e.g., Akash-NG).
- Key 2025-2026 highlights: ISRO's SPADEX satellite docking success (January 2025); progress on NISAR (NASA-ISRO collaboration); semiconductor ecosystem growth with multiple plants starting production in 2026; AI initiatives like BharatGen and IndiaAI Mission advancements; and quantum convergence with AI for breakthroughs.
The Union Budget 2026-27
Under the Union Budget 2026-27 (presented February 1, 2026), the Government of India maintained strong allocations to key science and technology departments while introducing flagship schemes for frontier technologies, reflecting continued emphasis on research, private-sector innovation, self-reliance, and strategic sectors like AI, quantum, semiconductors, biopharma, and clean energy.
- Ministry of Science and Technology
Allocated ₹38,260.94 crore (broadly stable compared to 2025-26 levels), supporting core programs across DST, DBT, and DSIR/CSIR, with focus on mission-driven advancements and capacity building. - Department of Science and Technology (DST)
₹28,049.32 crore (including ₹20,000 crore for the Research, Development and Innovation (RDI) scheme to catalyze private R&D in AI, deep tech, biotechnology, and related areas via loans/financial instruments; continuity from prior corpus funding). - Department of Biotechnology (DBT)
Around ₹3,446 crore, aligned with biopharma and life sciences push. - Department of Atomic Energy (DAE) - R&D Sector
Steady/increased support (specific R&D jumps noted in areas like advanced reactors); overall nuclear ecosystem bolstered by extension of customs duty exemptions on imports for nuclear projects till 2035, plus ongoing Nuclear Energy Mission elements for Small Modular Reactors (targeting 5 by 2033). - Ministry of Earth Sciences (MoES)
Support continued for programs like Deep Ocean Mission and climate/earth observation. - Additional key highlights: Biopharma SHAKTI (₹10,000 crore over 5 years) to build ecosystem for biologics/biosimilars, clinical trials, and bio-manufacturing; India Semiconductor Mission (ISM) 2.0 for equipment, materials, full-stack IP, and industry-led centers; National Quantum Mission allocation increased to ₹900 crore; four telescope facilities (e.g., National Large Solar Telescope, Himalayan Chandra Telescope upgrades) for astrophysics/planetary science; ₹20,000 crore for Carbon Capture, Utilisation and Storage (CCUS); linkages to AI Mission, ANRF, and sovereign tech applications (e.g., Bharat-VISTAAR AI for agriculture).
The Road Ahead
India continues to assert itself as a global leader in industrialisation, scientific research, and technological innovation. With sustained budget support and mission-driven programs (e.g., RDI fund top-ups, Biopharma SHAKTI, ISM 2.0, Nuclear Energy Mission, IndiaAI, National Quantum Mission), the country is poised for major strides in self-reliance (Aatmanirbhar Bharat) and technological sovereignty.
Significant progress is expected in nuclear energy, with extended incentives and focus on clean expansion including Small Modular Reactors and CCUS. The government emphasizes quantum technology (enhanced funding and quantum-safe roadmap by 2033), semiconductors (ISM 2.0 ramp-up for indigenous production and supply chains), and AI-based innovations through sovereign models, applications in agriculture/health/defense, and tools like Bharat-VISTAAR.
Nanotechnology remains transformative, especially in pharmaceuticals for accelerated drug discovery and targeted therapies, bolstered by Biopharma SHAKTI. In agriculture, a tech-driven Green Revolution 2.0 promotes smart farming, biotechnology, climate-resilient practices, and digital infrastructure.
India's Science, Technology and Innovation (STI) ecosystem builds on prior frameworks (e.g., 2013 STIP) through inclusive, decentralized, mission-oriented approaches rather than a single new overarching policy. It incorporates dynamic evaluations, stakeholder engagement, and focus on evidence-based planning to foster innovation, attract talent, and position India among leading scientific powers.