GENERAL22 Sept 2026
India Inc failed to ramp up R&D spends despite '90s economic reform push
Indian listed companies have raised research and development spending from about ₹957.8 crore in FY99 to roughly ₹63,529.2 crore in FY26, yet the total remains small. Cumulative R&D spend was just $7.2 billion in FY26, while Alphabet alone spent $61 billion in 2025. In practice, India's reform push hasn't turned into big private research budgets, so founders should treat innovation spending as a planned expense, not an afterthought.
Key Statutory Highlights
- R&D spending by listed companies in the Business Standard sample rose from about ₹957.8 crore in FY99 to about ₹63,529.2 crore in FY26.
- Cumulative spending on research and development by these companies was just $7.2 billion in FY26.
- Alphabet alone spent $61 billion on R&D in 2025, far more than the Indian sample's total.
Actionable Advice for Taxpayers / Founders:If you run a business, review what you actually spend on research and development this year, keep clean records of those costs, and check with your CA on how they should be treated before you claim anything.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
Share: