Nasscom noted that 26% of the global ER&D spend comes from India and it could grow to 34% by the end of this decade, led by government initiatives such as the production-linked incentive (PLI) scheme, launch of 5G and the country’s growing pool of engineers.
“The ER&D sector in India has been around for over two decades. And it’s amazing to see how the sector has evolved and grown over this period at $36 billion in revenue in FY22. This sector is already over 16% of the total industry,” Krishnan Ramanujam, the chairperson of Nasscom, said at the launch of the 14th Nasscom Design and Engineering Summit in Bengaluru.
Ramanujam said India’s BPO sector has emerged as a key player for engineering and product innovation in the country. “Over 70% of the 50 most innovative global companies have a centre in India, and 12 of the top 50 engineering service providers are headquartered in India, and a growing pool of startups that are building the emerging technology segments,” he said.
Kartikeyan Natarajan, the COO of tech company Cyient and co-chair of engineering services forum at Nasscom, said,” The total ER&D spend is likely to grow to $2.9 trillion by the end of this decade, and about $120 billion will be delivered out of India, which is roughly 34% of the market share.”
A recent Nasscom survey found that 70% of the ER&D industry respondents are exploring cooperation opportunities with startups and engineering service providers, along with their own centres in India. This opportunity can be boosted through better IP rights, government policies, collaborating with academia and creating innovation superclusters, Kartikeyan said.
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