India is fast emerging as a potential R&D destination for global companies and outpacing China due to low costs, faster and more cost-effective time-to-market opportunities and the availability of a significant number of scientists. As a signatory to the World Trade Organisation (WTO) and based on the agreement on Trade-Related Intellectual Property Rights (TRIPS), India entered the product patent regime in 2005, which has led to a significant increase in innovation.
The industrial sector in India currently spends around 0.54 per cent of the sales turnover on R&D. In industrial R&D expenditure, drugs and pharmaceuticals contributed the largest share, (37.4 per cent), followed by the transportation and defence industries, with 14.7 per cent and 6.9 per cent, respectively, in the same period. Most research activity in India is undertaken in the pharmaceutical, biotechnology, software, IT and auto component segments.
It is estimated that overall global R&D will increase by 4 per cent in 2010 to US$ 1,156.5 billion from US$ 1,112.5 billion in 2009. India and China, which are likely to contribute a 7.5 per cent increase in Asia's R&D, are expected to mainly drive this increase.
India has identified potential areas where the development of a core competency is expected to significantly affect science-based technologies for societal and economic benefits as well as national security. India's successful participation in CERN has paved the way for its participation in the International Thermonuclear Experimental Reactor (ITER) project as an equal partner.Sectoral Presentation (November 2010)
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