According to an analysis by RBI officials, the Covid pandemic did not result in a reduction in research and development (R&D) expenditure by Indian companies. The analysis looked at data from 1,161 companies and found that the likelihood of companies engaging in R&D activities remained unchanged during the economic slowdown caused by the pandemic. The paper suggests that the resilience of R&D activities bodes well for sustained innovation and productivity growth in India in the post-Covid period.