Consumer companies score low on R&D spending amid innovation chorus
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Indian consumer companies show low research and development spending despite claims of innovation.
- ✓An analysis of 20 large firms showed average R&D spending rose to 0.9% of sales in 2025-26 from 0.5% five years ago.
- ✓Sunil Vachani said, “There is no doubt that spending on R&D has to increase.”
Story at a Glance
- Category
- BUSINESS
- Reported By
- The Economic Times
- Reading Speed
- 5 Minute(s)
- Market Focus
- India Economy
Synopsis
Indian consumer firms are asserting their commitment to technology and innovation, yet their investment in research and development (R&D) remains unremarkably low. Analysis reveals that R&D spending barely rose to an average of 0.9% of sales, with prominent companies like ITC, Britannia, and Hindustan Unilever experiencing stagnant or even decreasing funding.
Kolkata: India’s consumer companies are increasingly emphasising their commitment to technological advancement, localisation and innovation, but their actual research and development (R&D) spending remains low.
An ET analysis of 20 large companies across the fast-moving consumer goods, automobiles and electronics sectors showed that average R&D spending rose to 0.9% of sales in 2025-26 from 0.5% five years ago, with much of the increase coming from automobile and electronics makers. Experts termed the increase modest given the country’s push to rapidly move beyond manufacturing and build worldclass products, technologies and intellectual property.
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The Economic Times
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