Our Honorable Prime Minister Narender Modi’s dream policy is ‘Make in India’. Research and Development is playing a vital role to achieve Make in India goal. India is a destination for Multinational companies for IT and IT enabled services, Engineering, etc.. Companies are moving their main R&D operations to India not only for low cost but also having skilled human resources. Our Indians are leading many global firms like Google, Microsoft, Adobe, etc.. More than 150 international companies are doing R&D in India. Indian companies also need to invest in R&D to compete with global firms. Recently we experience the Barat Biotech spent crores of rupees to develop a vaccine for Covid 19 and succeeded. This is possible only because of Research and Development. This study is focused to analyse the Distribution of Research and Development expenditure by various states during the study period, Examine the Share of world Research and Development Expenditure by Continents during 2000 -01 to 2017 -18 and also examine the Expenditure on Research and Development by Objectives during the study period. Observed from the study is Compound Annual Growth Rate (CAGR) of Institutional Sector R&D Expenditure is i.e 6.66 percent is more than the Industry Sector rate i.e. 5.18 percent. At the same time institutions under Central Government are spending more than 45 percent of total national R&D expenditure.  Gujarat, Tamil Nadu, and Punjab are in the top position among all the states in India in R&D expenditure. Bihar was recorded the highest negative CAGR i.e -26.05 percent. In the continents, Asia has recorded 9.10 percent CAGR. Central Government spent on R&D about 29 percent of total R&D expenditure on Defence as Central Government is giving priority to the security of the nation and public sector is also spending 51.37 percent of total R&D expenditure of public sector on Defence only. The Private sector has spent about 37 percent on health in total R&D expenditure of private sector. The next priority of private sector is Transport & Telecommunication.

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Keywords: Research and Development, Industrial Sector, DST, Ministry of Science & Technology.