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With a USD1.7 trillion economy and per capita income of over USD1,200, India presents a
unique opportunity for companies to tap the huge consumer base
Demand for cheap and durable products that could meet the local requirements drives the
need for innovation
Policy framework
Rising investments
Policies aimed at projecting India as a Science & Technology powerhouse, and promoting
both public and private sector involvement in the Research & Development practice
With more and more multinational companies setting up their R&D centres in India, the
sector has seen an uptrend in investments in recent years
Growing demand
Advantage
India
Rising investments
Policy support
2013
2003
1983
1958
Scientific
Policy
Resolution to
promote
science, and
scientific
research in all
its aspects in
India
Technology
Policy
Resolution to
address the
need to attain
technological
competence
and selfreliance
Science &
Technology
Policy to bring
science and
technology
together and
emphasise the
need for
investment into
research and
development to
address national
problems
Science,
Technology &
Innovation
Policy aims to
develop
synergies
between
science,
technology and
innovation
R&D bodies
Government
funding &
development
agencies
R&D in NGO
groups
Indian STI
system
R&D by
multinational
companies
Industrial R&D
systems
Academic sector
Socio economic
ministries
Source: Changing Indian STI Landscape Presentation, Department of Science & Technology
Note: STI refers to Science Technology & Innovation
8,900
16,000
14,000
5,400
10,000
12,943
2009-10
2010-11
11,659
12,000
5,000
12,754
8,412
8,000
6,000
4,000
2,000
0
2000
2010
0
2006-07
2007-08
2008-09
Source: IBEF, Department of Science & Technology, National Science and Technology Management
Information System, UGC, World Intellectual Property Organisation, Aranca Research
10
6.8
7.6
0.80%
5.4
0.90%
0.85%
11.2
10.3
9.8
15.1
13.6
0.75%
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11* 2011-12*
8.1
4
2
4.3
4.0
3.4
3.2
1.3
0.2
0.5
0.3
0.6
0.3
0.7
0.4
0.8
0.4
0.8
4.6
4.0
3.2
3.1
2.3
1.9
0.4
6.7
6.0
5.4
8.9
0.5
1.0
0.6
1.1
0.6
2004-05
2005-06
2006-07
Central Government
2007-08
State Government
2008-09
Private Sector
2009-10
2010-11*
2011-12*
36,261
40,000
30,000
20,000
18,911
10,000
0
2002
2008
Number of publications
2006-10
Chemistry
25,719
38,920
6.5%
Physics
13,490
20,525
4.6%
Clinical medicine
10,046
19,273
1.9%
Engineering
9,605
18,596
4.2%
Materials science
7,987
14,190
6.4%
8,748
11,591
3.9%
Biology
5,403
9,722
3.8%
Agricultural science
4,514
7,270
6.2%
Pharmacology
2,518
5,755
6.1%
Geoscience
3,566
5,508
3.2%
Subject
Name of institute/university
39,400
36,812
28,940
35,218
43,197 43,674
34,287
20,000
10,000
0
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Patents Filed
Patents Granted
Applications
filed (2012-13)
205
202
Amity University
140
73
31
68
16
62
15
28
Source: Office of Controller General of Patents, Design, Trade Marks and Geographical Indication, Aranca Research
24%
25%
28%
30%
33%
35%
38%
36%
34%
35%
36%
75%
72%
70%
67%
65%
63%
65%
66%
65%
64%
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11*
2011-12*
75%
50%
77%
76%
25%
0%
2000-01
2001-02
Government
Business Sector
Source: Department of Science & Technology, Aranca Research
Note: Numbers for 2010-11 and 2011-12 are forecasted numbers
Competitive Rivalry
Threat of New
Entrants
(Low)
Substitute Products
With easy access to talent base
and low operational costs,
companies may look to set up inhouse scientific research centres
Bargaining
Power of
Customers
(Low)
Competitive
Rivalry
(Low)
Bargaining
Power of
Suppliers
(Medium)
Substitute
Products
(Medium)
Policy
support
strengthening capacity
for basic research
Investments from
Multinational
Resulting in
strengthening
institutional capacity
for research
Companies (MNCs) to
cater to the needs of
the local market and
their global client base
strengthening human
capacity for research
200,000
100,000
50,000
2006
2009
In millions
1,127
1.5
1.1
1,000
800
154,840
150,000
192,819
1.0
775
0.7
663
600
0.5
400
200
0.0
2006
2010-11
2011-12
2010
2012-13
Source: NSTMIS, Department of Science & Technology
1,125
896
1,000
1,026
767
676
500
0
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
USD million
750
478.3
500
250
47.4
0
2002-03
2009-10
750
780
871
517
500
297
250
191
0
Before '00 2001-02
2003-04
2005-06
2007-08
2009-11
The Government of India has taken various steps to generate interest and promote investments in the Science &
Technology Sector
National knowledge
network
National innovation
council
Improving academia
20102020 has been declared the Decade of Innovation to stimulate innovations and
produce solutions for societal needs such as healthcare, energy, infrastructure, water and
transportation
Total research citations impact factor has increased from 0.68 in 20062010 compared to 0.53 for 19962000
In 2010, 21.5 per cent of research papers from India had international collaborators
Government funding
Academic research
Human capital
Korea
China
East Asia
Thailand
Indonesia
Vietnam
Czech Republic
Romania
Poland
Slovakia
Russia
Hungary
Turkey
Brazil
Latin America
Less competitive than India
Mexico
In competition with India
Source: World Bank data, NSTMIS, Department of Science & Technology, Aranca Research
USD billion
6.0
4.8
3.6
4.0
3.9
3.3
2.9
2.4
2.0
1.9
0.0
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11E 2011-12E
Tata Motors
397.8
1.5%
Prithvi Information
246.3
60.5%
Polaris Software
228.0
67.6%
BHEL
176.3
2.5%
157.2
2.5%
Lupin
112.7
9.3%
Infosys
112.0
1.9%
Reliance Industries
110.0
0.2%
Core Projects
96.2
53.4%
Bharat Electronics
67.2
5.9%
Company
Plans to invest ~USD83 million in an R&D unit to extend support for Honda's localisation strategy for its
running models as well as provide designing support for some upcoming India-specific models in the near
term
Investing ~USD75 million in an R&D unit in Rajasthan to develop models for both domestic and
international markets
Plans to set up a manufacturing facility for its high-end artistry range of cosmetics and set up an R&D
centre (its second outside the US)
Plans to double headcount at its Bengaluru R&D facility to make the centre a hub for global engineering
development and cater to the technology needs of the Asia-Pacific region
Plans to start R&D in rolling stocks for its railway systems to support the growing urban transport needs in
the region
Opened an R&D centre in India with focus on organic synthesis, advanced process and formulation,
molecular modeling and agro chemicals
Plans to establish a global R&D centre in India to develop products and solutions for India as well as the
international market
958.7
Transportation
483.1
Information Technology
469.6
186.9
171.3
Biotechnology
131.4
111.5
Fuels
45.7
Telecommunications
41.7
Industrial Machinery
34.6
Pharmaceuticals
Manufacturing
technologies
Material energy
Bio-energy
Water technologies
India needs inexpensive diagnostic kits with antigens and markers that are specific to
Indian conditions
Automation and environmental sustainability are the key focus areas for manufacturing
companies
95.9
100
86.2
78.9
80
71.5
66.4
60
40
2012
2013E
2014E
2015E
2016E
USD billion
55.0
50
40
30
20
0
2009
2020E
12.6
10
6%
5.0%
5.4%
5.0%
4.8%
4.9%
2007-08
2008-09
4.5%
4%
2%
0%
2004-05
2005-06
2006-07
2009-10
Focus on critical
technology
development
Human capital
development
Investment in basic
research
Attracting investment
from private sector
The policy framework is being devised to enable school science education reforms, by
improving teaching methods and science curricula
Focus is on investing in research & development of technologies that address the needs
of rural India
Through Science, Technology & Innovation Policy, the Government is promoting the
establishment of large R&D facilities in PPP mode with provisions for benefits sharing
R&D laboratories
collaboration
Promoting innovation
Production
of first
indigenously
designed
LCV
A Combination of
Launched
worlds
cheapest
car, Tata
Nano
Launched
Indias first
indigenously
designed car
Technology and
Imagination,
Tata Motors has been
The Way
Forward:
Conducting R&D
for low carbon
vehicle
technologies,
including pure
electric vehicles,
hybrid drive trains
and advanced
fuels
Establishment
of
Engineering
Research
Centre
1966
1998
2005
2008
2014
Year
Year
2004-05
44.95
2005
45.55
2005-06
44.28
2006
44.34
2006-07
45.28
2007
39.45
2007-08
40.24
2008
49.21
2008-09
45.91
2009
46.76
2009-10
47.41
2010
45.32
2010-11
45.57
2011
45.64
2011-12
47.94
2012
54.69
2012-13
54.31
2013
58.44
2013-14
60.28
Q12014
61.58
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