Science & Technology Industry Analysis

India has a strong network of science and technology institutions and trained manpower. It has the third largest scientific and technical manpower in the world with 162 universities awarding over 4,000 doctorates degrees and 35,000 post graduate degrees annually. India’s R&D investments is forecasted to increase to US$ 94.06 billion* in 2019 from an estimated US$ 86.24 billion in 2018. India’s medical technology (MedTech) sector is forecasted to reach US$ 9.6 billion in 2022 and Rs 54,514 crore (US$ 7.8 billion) in 2020 from Rs 39,837 crore (US$ 5.7 billion) in 2017.

India is among the top-ranking countries in the field of basic research. India stood at third spot in number of science and engineering publications in the world. IBM’s India inventors contributed over 800 patents in year 2017, making India the second highest contributor after the US region.

Under the Union Budget 2019-20, the Government of India announced the largest ever allocation of Rs 5,880 crore (US$ 841 million) to the Ministry of Science and Technology, Rs 2,580 crore (US$ 369.15 million) to Department of Biotechnology and Rs 4,895 crore (US$ 700.38 million) to the Council for Scientific and Industrial Research. The Department of Atomic Energy has been allocated Rs 16,925.51 crore (US$ 2.32 billion). The Ministry of Earth Sciences was allocated Rs 1,901.76 crore (US$ 263.58 million), which is an increase of 5.65 per cent as against the previous budget.

The engineering R&D and product development market in India is forecasted to grow at a CAGR of 10.67 per cent to reach Rs 2.93 lakh crore (US$ 42 billion) by 2020 from Rs 1.95 lakh crore (US$ 28 billion) in FY18. By 2022, R&D expenditure is targeted to reach at least 2 per cent of the GDP by 2022. As per Union Budget 2019-20, government to set up National Research Foundation for R&D.

The Government of India is extensively promoting research parks technology business incubators (TBIs) and (RPs) which would promote the innovative ideas till they become commercial ventures. In July 2018, Atal Innovation Mission along with MyGov launched Innovate India Platform with an aim to provide a common point for all the innovation happening across India. India Space Research Organisation (ISRO) launched space technology incubation centre was launched in Tripura, Agartala. It is one of the six centres, planned to build national capacity in new locations, as of September 2018.

F- forecasted, * in Purchasing Power Parity terms