Indian companies are on the top position globally when it comes to growth in research and development (R&D) investments, according to a study by the European Commission. There are 14 Indian companies that are a part of the list of the top 1,500 entities worldwide in terms of their absolute annual R&D investments.
India is one of the leading offshore destinations in delivering engineering research and development (ER&D) services with a market share of 22 per cent. The ER&D market in India is expected to grow to US$ 42 billion by 2020, according to a Zinnov study titled, 'Engineering R&D: Advantage India'.
The Natural Environment Research Council (NERC), United Kingdom (UK) and the Earth System Science Organsation (ESSO), Ministry of Earth Sciences (MoES), India, have signed a memorandum of understanding (MoU) to facilitate cooperation between UK and the Indian earth system science and environmental research communities. In 2012, the two establishments jointly funded five collaborative research projects for Changing Water Cycle programme.
Indian ER&D outsourcing industry is set to reach US$ 37 billion-US$ 45 billion by 2020, according to a report by Nasscom and Booz & Co. This will be about 35 per cent of the overall ER&D market, which is estimated to touch US$ 118 billion by 2020, while being currently pegged at US$ 10.2 billion.
The services sector which includes R&D, testing and analysis besides other related segments attracted foreign direct investments (FDI) worth US$ 37,062.75 million between April 2000 to January 2013, an increase of 19.51 per cent to the total FDI inflows in terms of US$, according to the latest data published by Department of Industrial Policy and Promotion (DIPP).
The largest overall increase in R&D investments was reported by companies based in India with 35.1 per cent, followed by China at 28.1 per cent, highlighted the study by the European Commission.
Indian Space Research Organisation (ISRO) is planning to accomplish the following missions in the next one year - 3 Polar Satellite Launch Vehicles (PSLV), 1 Geosynchronous Satellite Launch Vehicle, 2 Communication Satellites, 1 Earth Observation (Ocean) Satellite, 1 Meteorological Satellite, 1 Navigation Satellite and Mars Orbiter.
The Indian Institute of Astrophysics (IIA) plans to set up the world's largest solar telescope in Ladakh at an expected cost of Rs 150 crore (US$ 27.57 million). The solar telescope is planned for completion in 2017. The device will help Indian scientists to carry out research aimed at studying the sun's atmosphere.
The Prime Minister's fellowship scheme for doctoral research has been launched in New Delhi by Mr S Jaipal Reddy, Union Minister for Science and Technology. The scheme will award 100 annual fellowships and the duration of fellowships would be four years.
In addition, India has become the hub for semiconductor design with nearly 2,000 chips being designed per year and more than 20,000 engineers are working in various aspects of the sector, as per Department of Electronics and Information Technology (DeitY).
Government Initiatives
Dr Manmohan Singh, the Prime Minister of India, unveiled the country's new Science, Technology and Innovation policy. The policy aims to increase the number of full time equivalent of R&D personnel in India by at least 66 per cent of the present strength in five years.
The Government of India has disbursed Rs 205 crore (US$ 37.68 million) as scholarships for women scientists under the Women Scientists Scholarship Scheme (WSSS), Ministry of Science and Technology.
The National Policy on Electronics (NPE) proposes to set up more than 200 Electronic Manufacturing Clusters. Another important objective of the policy is to significantly upscale high-end human resource creation to 2,500 PhDs annually in the sector by 2020.
The Government of India (GoI) has proposed to create an electronics development fund of US$ 2 billion to promote innovation, intellectual property, R&D, nano electronics and help commercialise made-in-India products. The chip design and embedded software market in India is estimated to reach US$ 55 billion in 2020, as per the goal of NPE.
In addition, the Government is expected to provide a boost to engineering in India through investments in infrastructure development in 2012-17 in telecom, energy and construction sector, as per a report by Nasscom and Booz & Co.
Giving impetus to domestic R&D, Dr Manmohan Singh, the Prime Minister of India, highlighted that R&D is on top-priority list. While inaugurating the India Telecom Summit, he insisted that considering the growth potential for the manufacturing of telecom equipment in India, there is an urgent need to boost R&D and manufacturing in the sector, for which the private sector should also lend its support.
The Union Budget 2012-13 had extended weighted deduction of 200 per cent for R&D expenditure in an in-house facility for a further period of five years beyond March 31, 2012.
A sum of Rs 4,727 crore (US$ 868.93 million) for medical education, training and research has been allocated under the Union Budget 2013-14. In addition, agricultural research Rs 3,415 crore (US$ 627.76 million) has been allocated.
In addition, Rs 200 crore (US$ 36.76 million) will be set apart to fund organisations that will scale up Science and Technology (S&T) innovations and make these products available to the people.
The Government is keen on involving private sector in a significant way in R&D sector, especially in the fields of vaccines, drugs and pharmaceuticals, super computing, solar energy and electronic hardware, stated Mr Ashwani Kumar, Minister of State for Science & Technology. A public-private partnership (PPP) fund of Rs 5,000 crore (US$ 919.12 million) has also been set up for the same, which would also promote commercialisation of products and services.
Road Ahead
Companies have shown huge R&D increases in sectors Information, Communication and Technology (ICT), automobiles and auto components, industrial engineering, electronics and pharmaceuticals. India is also witnessing R&D growth in areas such as genetic modification, bio-energy sources, biochemistry, atomic energy, organ donation and biomedical science.
Indian design houses are playing a crucial role in the development of new automobiles many of which are for markets overseas.
Moreover, India has many assets in its strong pool of scientists and engineers,
vast institutional network, and cost effective manufacturing. India produces
over 200,000 engineers every year.
Exchange Rate used: INR 1 = US$ 0.01839 as on March 19, 2013
References: Media Reports, Press Releases, Innovation Council of India, Union Budget 2013-14, Department of Electronics and Information Technology (DeitY)