Mumbai, May 20 -- India's low research and development (R&D) spending of around 0.6-0.7 per cent of GDP is emerging as a key structural challenge for the country's manufacturing growth, with the sector's share in GDP declining over the past decade despite steady output expansion, according to a report by CareEdge Ratings.

The report noted that India's manufacturing share in GDP declined from around 16 per cent in 2015 to nearly 13 per cent in 2024, even as manufacturing output grew from around USD 328 billion to USD 493 billion during the period.

"India's manufacturing sector is at a critical inflection point. While recent policy initiatives strengthened production capabilities, long-term competitiveness will depend on the ability to tr...