The Union Budget 2026, on Sunday, February 1, earmarked ₹66,784.67 crore for core research and development (R&D) across key science and technology departments, underscoring the government’s focus on strategic and mission-driven research.
The allocations span major R&D-heavy departments, including atomic energy, space, science and technology, biotechnology and agricultural research, which together account for the bulk of India’s publicly-funded research ecosystem.
India’s gross expenditure on research and development (GERD) has risen steadily over the last decade, increasing from ₹60,196.75 crore in 2010–11 to ₹1,27,380.96 crore in 2020–21, as per PIB. However, R&D spending as a share of GDP has remained broadly stable in the 0.64–0.66% range, trailing several advanced economies.
Government data shows that public spending continues to dominate India’s R&D landscape, with the central government and public sector enterprises accounting for nearly two-thirds of total R&D expenditure, while the private sector contributes around 36%. Defence, space, atomic energy and science ministries together form the backbone of public R&D outlays.
Where is the money going?
In Budget 2026, the Department of Science and Technology received an allocation of about ₹28,000 crore to support national research missions, institutional grants, and scientific infrastructure. The Department of Space was allocated over ₹13,700 crore, reflecting sustained investment in satellite development, launch systems and space science.
The Department of Atomic Energy continued to see significant funding for core research institutions, with nearly ₹4,900 crore allocated to atomic research centres such as the Bhabha Atomic Research Centre (BARC) and allied laboratories.
Agricultural research also remained a priority, with over ₹9,200 crore routed through the Department of Agricultural Research and Education, covering crop science, livestock research, fisheries and the Indian Council of Agricultural Research (ICAR) system.
Funding of ₹6,765.62 for industrial and applied research was channelled through the Department of Scientific and Industrial Research (DSIR) and the Council of Scientific and Industrial Research (CSIR) network, while the Department of Biotechnology continued to support life sciences research and innovation platforms.
Overall, R&D funding is spread across multiple ministries and departments, covering institutional research, mission-mode programmes and capacity building in higher education and national laboratories, according to budget documents
Innovation push gathers pace
Alongside institutional research, the Budget also reflects the government’s emphasis on innovation and early-stage technology exposure, particularly through school- and student-level programmes.
A key example is the Atal Tinkering Labs (ATL) initiative under the Atal Innovation Mission. In the Union Budget last year, the government announced plans to scale up ATLs to 50,000 labs nationwide to promote hands-on learning and innovation at the school level.
While the rollout announcement was made earlier, Budget 2026 provides a sharp jump in funding. Revised estimates for 2025–26 stood at ₹500 crore, while budget sstimates for 2026–27 have risen to ₹3,200 crore, signalling accelerated implementation.
Over the past year, more than 10,000 ATLs have been set up, engaging more than 1.1 crore students in government and private schools. Each lab receives a one-time establishment grant of ₹20 lakh, along with operational support of up to ₹10 lakh over five years, taking total government support per lab to ₹30 lakh. According to PIB data, ATLs have led to the creation of more than 16 lakh innovation projects, as of October 2025.
The labs focus on emerging technologies such as robotics, electronics, artificial intelligence and the internet of things, and are seen as a pipeline for nurturing future innovators and researchers.
While India’s R&D spending has expanded in absolute terms, analysts note that R&D intensity remains modest compared with global peers. Successive budgets have therefore leaned on targeted allocations, mission-driven programmes and funding reforms rather than a sharp jump in headline R&D-to-GDP ratios.
Budget 2026 continues to reinforce support for strategic sectors such as space, atomic energy and science, while simultaneously pushing innovation deeper into the education system to strengthen India’s long-term research and innovation ecosystem.