Agricultural research has played a key role in promoting production and productivity, thus helping with poverty reduction in developing countries for the past several decades. Compared with returns to other investments returns to agricultural research and development (R&D) have been one of the highest. All the centre, the ICAR and its research institutes are funded by the union government. The SAUs (state agricultural Universities) involved in research and education funded by state governments. Some funds are transfer from ICAR to SAUs in form of regular grants and schemes. The overall growth rate of agricultural R&D expenditure from 1960-61 to 2010-11 was only 5.35 percent per annum. The agricultural R&D intensity ratio is 0.39 percent which is very low in compare with developed countries i.e. 2-4 percent and developing countries which is 0.75 percent.

KEY WORDS: Agriculture, R&D, Intensity ,Expenditure.