India’s global ER&D market to hit $63 bn in 2025: Nasscom
1 min read 02 Mar 2021, 04:04 PM ISTThe sub-sectors driving growth of ER&D in 2019 are software products, semiconductors and automotive
PremiumBengaluru: India’s share in the global engineering and research and development (ER&D) market is expected to grow at a compound annual growth rate (CAGR) of 12-13% to reach $63 billion by 2025 from $31 billion in 2019, said the Karnataka State Policy for ER&D 2021 released on Tuesday by the department of information technology and biotechnology of the Karnataka government in association with Nasscom.
The three leading sub-sectors driving growth of ER&D in 2019 are software products, semiconductors and automotive, the report said.
The policy intends to foster innovation, enhance ER&D penetration in the state, and enable development of skills required to address the critical, and evolving needs of the global technology landscape.
“The new policies are focused on invigorating the research and development (R&D) landscape in the state and enhancing its global competitiveness. We expect the new policies to improve the foreign direct investment (FDI) inflows in R&D and provide a boost to the innovation and research ecosystem," said Ashwathnarayan C.N., deputy chief minister, Karnataka.
ER&D has become one of the fastest growing segments in India as the country emerges as an engineering and design hub for automobiles, aerospace, consumer electronics, machinery and semiconductors, the report said. India’s demographic dividend is a key growth driver as 50% of the population is under the age of 25 years. “Youth also lead in India’s startup ecosystem with the median age of founder entrepreneurs as only 31 years old. This talent base needs to be tapped and nurtured adequately for it to complement the ER&D growth story," it said.
The Karnataka government plans to invest in specific programmes aimed at catalysing research and innovation by bridging the gap between academia and the private sector. The state government’s electronics system design and manufacturing policy offers ₹2 crore as R&D grants per year. Similarly, its IT policy also offers R&D grants of up to ₹1 crore a year.
“Karnataka has been the pioneer in creating a thriving ecosystem for R&D and these policies will further strengthen its position as the prime destination for engineering and research within the country," said Debjani Ghosh, president, Nasscom.
