As per a report from Business Standard, pharmaceutical companies are the leading private-sector firms in terms of R&D (Research & Development) expenditure in India.

R&D is a key metric used to gauge a company’s innovation capability and future competitive resilience. It refers to the spending undertaken by a company to innovate existing products or develop new ones.

The report, citing the European Commission as its source, states that Sun Pharmaceutical Industries spent €343 million on R&D, placing it 3rd on the list. Dr. Reddy’s Laboratories came in 4th with a spending of €241 million, followed by Aurobindo Pharma in 6th place with €189 million. Lupin and Cipla secured the 7th and 8th positions, each spending €169 million.

R&D expenditure is extremely critical for the sustenance and growth of pharmaceutical companies, more so than in many other sectors. Despite being smaller in size compared to other private-sector firms, these pharma companies outspent larger Indian private-sector companies on R&D.

The report also highlighted the lack of R&D investment appetite among Indian private companies in general, which could hinder their competitiveness both in the domestic and export markets against foreign players.