Research and Development
India companies occupied the topmost position globally in terms of growth in R&D investments.

Research and Development in India

Latest update: September, 2014

R&D spending in India

India's share of global R&D spending rose to 2.7 per cent in 2013 from 2.6 per cent in 2012 and is forecasted to be at 2.7 per cent in 2014.

R&D spending in India

MNC R&D centers distribution in India

Bengaluru has 39 per cent of MNC R&D centers, followed by Mumbai and Pune at 19 per cent.

MNC R&D centers distribution in India

Trade mark applications in India

Trademark applications expanded at a CAGR of 11.1 per cent over FY07-13 to reach 194,216.

Trade mark applications in India

Break-up of IPR applications in India

Trademark applications accounted for the largest share (79 per cent) of total applications at 147,174 in FY14.

Break-up of IPR applications in India

Updated: September, 2014

INNOVATION AND PATENTS SECTOR REPORT | April, 2014

Introduction

Research and development (R&D) is of utmost necessity to develop a country’s production potential and also its science and technology sector. It helps a nation to progress and bring about innovation in all sectors. The Government of India has always supported this sector and has invested significantly in setting up universities and technological institutions as well as various research centres.

The government has set up various bodies to promote R&D in the country, such as the National Research Development Corporation (NRDC) and the Defence Research and Development Organisation (DRDO). The NDRC promotes, develops and commercialises the technologies and works under the administrative control of the Department of Scientific and Industrial Research, Ministry of Science and Technology; while the DRDO is dedicated towards enhancing self-reliance in the country’s defence systems.

Market size

The spending on R&D in India is mostly done by the companies in the private sector, although the government is now taking large strides to fund such initiatives in the country. Companies such as Ranbaxy Laboratories, Dr Reddy’s Laboratories, Tata Steel, Mahindra & Mahindra and Cadilla are some of the private sector companies which are among the topmost spenders in R&D.

The number of multinational corporation (MNC) R&D centres in India increased at a compound annual growth rate (CAGR) of 14.4 per cent to 1,031 during the first half of 2013. Out of the Indian cities, Bengaluru has the highest share of the MNC R&D companies followed by Pune and Mumbai. In India, the pharmaceutical sector accounts for the largest share of R&D followed by the automobile sector.

According to forecasts, the gross spending in India on R&D should increase to US$ 44 billion and account for 0.9 per cent of the GDP by the end of 2014, as compared to US$ 42 billion and 0.85 per cent, respectively, in the year 2013.

India is presently ranked 76th among a total of 143 economies, as per the Global Innovation Index (GII).

Investments

Some of the major notable investments and developments in the R&D sector are as follows:

  • Mangalore University, in collaboration with Mumbai-based Bhabha Atomic Research Centre (BARC), has developed a Thoron Mitigation System under a Memorandum of Understanding (MoU) for collaborative research programmes. This new system has the potential to offer numerous advantages over conventional systems for the continuous removal of radon and thoron from air in industrial workplaces.
  • The United Kingdom (UK) has outlined key areas to give a boost to bilateral relations with India, by emphasising on infrastructure development, education, research and development and foreign policy for job growth.
  • GeneOmbio Technologies and Resilient Cosmeceuticals have launched India’s first comprehensive nutrigenomics support lab in collaboration with DNA LIFE under the GeneSupport brand. This move would enable an era of personalised wellness, including diet, exercise and lifestyle changes, using genetics as the tool to formulate a customised health solution.
  • The Technopark-Technology Business Incubator plans to set up ‘OpeniSpace’, an open innovation space on its campus, for innovators and young student entrepreneurs. The ‘OpeniSpace’ start-up space will provide plug-and-play facilities with four to 12 seats along with Wi-Fi internet connectivity for young entrepreneurs.
  • Tech Mahindra has inked a pact with US-based Wichita State University and will collaborate with its National Institute for Aviation Research (NIAR), the largest academic aviation R&D institution in the US, on multiple areas of engineering including composites, advanced materials and structural testing.
  • Hyderabad-based GVK Biosciences unveiled a separate brand identity for its clinical development solutions division as Clinogent. It will provide R&D solutions to pharmaceutical, generics, biotechnology companies, and academic institutions across the globe with the focus markets being the US, Europe, Turkey and Asia.

Government Initiatives

Promoting R&D and bringing about the scientific temper will be the priority of the Science and Technology Ministry to make India the world leader in this area, according to Mr Jitendra Singh, Minister of Science and Technology, Government of India.

The Government of India has taken several steps to promote the R&D sector in India. In the recently released Union Budget 2014-15, it established two more Agricultural Research Institutes of excellence in Assam and Jharkhand with an initial sum of Rs 100 crore (US$ 16.33 million). It also plans to set up a national level research and referral institute for higher dental studies and 15 model rural health research centres.

The government is also considering expanding its India Inclusive Innovation Fund corpus and mandate aimed at promoting grassroots level innovations to deliver social and economic returns. The India Inclusive Innovation Fund presently has a corpus of Rs 500 crore (US$ 81.69 million) and invests in sectors such as healthcare, water, energy and agriculture.

Rubber Research Institute of India (RRII) has received a US patent for ready-to-use rubber mixes for the industry. The patent, relating to development of industry standard and application focused rubber, uses techniques that are environment friendly and energy efficient.

Agricultural scientists from three Indian institutes have collaborated with the International Wheat Genome Sequencing Consortium (IWGSC) to decode the genetic blueprint of wheat. This initiative was financially supported by the Department of Biotechnology at a total cost of Rs 35 crore (US$ 5.71 million). The wheat breeders will now be able to produce superior wheat varieties at an accelerated pace to meet the demands of a growing world population in the changing environment.

Road Ahead

With the government’s support, the R&D sector in India is all set to witness some robust growth in the coming years. According to a study by management consulting firm Zinnov, engineering R&D market in India is estimated to be grow at a CAGR of 14 per cent to reach US$ 42 billion by 2020, while it stood around US$ 14.7 billion in 2012.

India is also set to witness high growth in its agriculture and pharmaceutical sectors with the government investing huge sums for setting up research centres specifically dedicated for R&D in these fields. Also, the Indian IT industry will add to the development of the R&D sector as India makes its way to the top of the world IT market.

Exchange Rate used: INR 1 = US$ 0.0163 as on September 25, 2014

References: Media Reports, Press Information Bureau (PIB), Innovation Council of India, Union Budget 2014-15, Department of Industrial Policy and Promotion (DIPP)

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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