The distribution of research grants is essential in influencing a nation's scientific and technological environment. In India, research financing is predominantly facilitated by government entities including the Department of Science and Technology (DST), University Grants Commission (UGC), and Indian Council of Medical Research (ICMR), in addition to support from commercial and foreign financial organisations. This paper examines the changing trends in research funding distribution across several disciplines, highlighting significant patterns in funding allocation, priority research domains, and novel funding modalities. The research identifies significant hurdles, such as bureaucratic delays, inequitable grant distribution, insufficient transdisciplinary financing, and obstacles encountered by early-career academics in obtaining financial assistance. The document analyses policy initiatives and institutional frameworks that affect funding efficiency and its consequences on research output and innovation. This study seeks to enhance the efficacy of research grant allocation in India by analysing funding trends and resolving current difficulties, hence promoting a more inclusive and innovation-oriented research ecosystem.