The Economic Times analysis of 20 large Indian companies across FMCG, automobiles and electronics puts their average research and development (R&D) spending at 0.9% of sales in FY2025-26, up from 0.5% five years earlier. The rise came substantially from automobile and electronics makers; it does not mean every consumer company is investing more, or that the sample represents the whole market.
What the 0.9% figure measures
The Economic Times’ October 3, 2026 analysis selected 20 companies, including leading firms in fast-moving consumer goods, automobiles and electronics. Its sample covered the top two or three players by market share in each category and included companies such as Hindustan Unilever, ITC, Maruti Suzuki, Hyundai Motor India, Mahindra & Mahindra, Samsung Electronics India, LG Electronics India, Britannia, Hero MotoCorp, TVS Motor, Asian Paints and Nestlé. The figures were compiled from annual reports and filings with India’s Registrar of Companies.
As an Amazon Associate I earn from qualifying purchases.
For its calculation, the analysis counted research expenses and capital expenditure incurred for research activities as R&D spending, then compared that spending with sales. The reported average rose from 0.5% of sales five years earlier to 0.9% in FY2025-26. Much of the increase came from automakers and electronics makers, according to The Economic Times analysis.
This is a selected-company, cross-sector average—not a census of Indian consumer businesses. It also measures spending relative to sales, not research quality, successful products, patents or how much product design is locally owned.
#1 Best Overall
Company figures show uneven investment
Several consumer-facing companies recorded flat or lower R&D intensity in the Economic Times comparison, even as industry discussion increasingly emphasizes innovation and localisation.
| Company | Reported R&D spending or intensity | Basis |
|---|---|---|
| ITC | 0.2% of sales, down from 0.3% | FY2025-26 versus FY2020-21; FY2025-26 R&D budget was Rs 213 crore |
| Britannia | Around 0.26–0.27% of sales | Broadly unchanged across the comparison period |
| Tata Consumer Products | About 0.25% of sales | Broadly stagnant |
| Asian Paints | Around 0.4% of sales | Broadly stagnant |
| Samsung Electronics India | Rs 37 crore | Against FY2025-26 sales of Rs 1.12 lakh crore |
| LG Electronics India | Rs 125 crore | Against FY2025-26 revenue of Rs 24,605 crore |
| Hyundai Motor India | Rs 68 crore | Against FY2025-26 sales of Rs 68,990 crore |
| Hindustan Unilever | Rs 164 crore | Against FY2025-26 revenue above Rs 61,975 crore |
The company-level figures and comparisons above are reported by The Economic Times. Spending totals and R&D-to-sales ratios answer different questions: a large company can spend more in rupees while allocating a small share of its sales to research.
Why a sales ratio needs context
R&D as a share of sales is a useful way to compare spending scale, but it can mislead when business models and accounting boundaries differ. Sunil Vachani, executive chairman of Dixon Technologies, told The Economic Times that “a lot of turnover is ultimately a pass-through,” making comparisons based on turnover less straightforward. His point is a denominator caveat, not a reason to discard the ratio.
- Business mix: Companies with different products, margins and supply chains may have very different sales denominators.
- What counts as R&D: Expense and capital spending may be reported differently; comparisons are meaningful only when the definition is consistent.
- Where research happens: A local subsidiary’s filings may not capture product development conducted by an overseas parent. The Economic Times also notes that software costs can sit in separate subsidiaries.
- What spending produces: The ratio alone says nothing about research effectiveness, technology ownership or commercial results.
For a fair comparison, use the same fiscal year and R&D definition, show both absolute spending and the sales ratio, and establish whether the figures cover a local subsidiary or a global parent. Avoid ranking unlike businesses by the percentage alone.
Local R&D and the innovation question
Some Indian subsidiaries report modest local R&D expenses relative to revenue, while core product development may remain overseas, according to the Economic Times article. An unnamed senior executive at a global electronics company told the publication that a parent company may seek higher profits from India rather than spend heavily on new product development. That is one executive’s observation, not evidence about every multinational subsidiary.
The broader question is whether India can move beyond manufacturing scale toward greater design and product-technology capability. Vachani said spending needs to rise as India and its industry evolve into “a products nation” while exports increase. A low reported local ratio may be one signal to examine, but it cannot by itself establish whether a company is innovating or where its innovation is taking place.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Industry and policy ambitions
A BCG-CII report, as reported by The Economic Times, says India’s top 10 listed consumer-durables companies invest less than 1% of revenue in R&D, compared with 1–4% among global peers. The comparison is attributed to that report through the Economic Times, rather than to CII’s public announcement itself.
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
In its September 24, 2026 announcement of the jointly authored report, CII said India’s consumer-durables market is projected to grow 8–10% annually through 2030, reaching Rs 3–3.25 lakh crore. The report also projects an incremental Rs 40,000–50,000 crore domestic value-add opportunity across materials and conversion over five years; these are forecasts, not achieved results. It identifies technology partnerships, capability building, scaled component manufacturing, stronger R&D and product innovation, AI-led productivity improvements and predictable regulation as factors that can support long-term investment. The report also points to technology access and scale economics as localisation barriers. See CII’s announcement.
Best Value
The Economic Times also places corporate R&D spending alongside India’s overall R&D expenditure of around 0.65% of GDP and a government objective to raise it above 1%. It describes a Rs 1 lakh crore Research, Development and Innovation Fund intended to catalyse private-sector R&D and deep-tech development. Those are policy details reported by the publication; they do not establish the fund’s implementation status, eligibility rules, application process or disbursements. The figures and policy context are reported in the Economic Times article.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
