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• Third largest technical manpower in the world
– 162 universities awarding 4,000 doctorates and 35,000 postgraduate degrees
• Global share in scientific publications rising at a CAGR of ~12 per cent
• 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
• 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
Source: IBEF, Aranca Research
Large consumer base
Huge talent pool
Policy framework
Rising investments
Source: Department of Science & Technology, FICCI, Aranca Research
Growing demand
• Expanding middle class and
increasing affordability are
expected to remain key demand
drivers for technologically
advanced products
• Demand for products that meet
the local needs is set to accelerate
Rising investments
• Cheap labour costs and easy
access to talent have been
attracting investments from foreign
companies in recent years
• Multinational companies are
setting up their R&D centres in
India
Policy support
• Government is providing continued
policy support in the form of
Science, Technology & Innovation
Policy 2013 and the Twelfth Five-
Year Plan (2012–17)
• Scientists and research
professionals are supported
through various grants
Huge talent base
• Third largest technical manpower
in the world
• With government and private
sector funding, academia is
adapting to the changing
requirements of the industry
Advantage
India
1958
Source: Department of Science & Technology, Government of India
• 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 self-
reliance
• 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
1983
2003
2013
Indian STI system
R&D bodies
Government funding &
development agencies
Academic sector
Socio economic ministries
Industrial R&D systems
R&D by multinational companies
R&D in NGO groups
Source: Changing Indian STI Landscape Presentation, Department of Science & Technology
Note: STI refers to Science Technology & Innovation
Source: IBEF, Department of Science & Technology, National Science and Technology Management
Information System, UGC, World Intellectual Property Organisation, Aranca Research
India is among the top-ranking countries in the field of basic research
It has the third largest scientific and technical manpower in the world
634 universities award over 16,000 doctorates degrees annually
the Council of Scientific and Industrial Research runs 39 research laboratories
India ranks 10th in terms of the number of resident patents filed
5,400
8,900
0
5,000
10,000
2000 2010
8,412
16,010
11,659
12,754 12,943
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2006-07 2007-08 2008-09 2009-10 2010-11
PhD research outputs in science M.Phil and doctorate degrees awarded in
science & technology discipline
3.4 4.0 4.3
5.4 6.0 6.7
8.1 8.9
0.4 0.5 0.6 0.7 0.8 0.8 1.0 1.1 1.3
1.9 2.3
3.2 3.1 3.2 4.0 4.6
0.2 0.3 0.3 0.4 0.4 0.5 0.6 0.6
0
2
4
6
8
10
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11* 2011-12*
Central Government State Government Private Sector Higher Education Sector
Source: Department of Science & Technology, NSTIMS, Aranca Research
Note: *Estimated Data
National Expenditure on R&D increased threefold from
USD5.4 billion during 2004–05 to USD15.1 billion during
2011–12
During the 12th Five-Year Plan, India’s R&D/GDP ratio
increased to 0.88 per cent
Per Capita R&D has gone up from USD4.8 during 2004–06
to USD9.5 in 2009
India’s share in World in Gross Expenditure on Research &
Development (GERD) has increased from 1.9 per cent in
2004–05 to 2.4 per cent in 2009–10
USD’ billion
USD’ billion
5.4
6.8 7.6
9.8 10.3 11.2
13.6 15.1
0.75%
0.80%
0.85%
0.90%
0
5
10
15
20
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11*2011-12*
National R&D Expenditure (LHS) R&D Expenditure (%of GDP) (RHS)
National R&D expenditure and its
percentage with GDP
National R&D expenditure by sector
18,911
36,261
0
10,000
20,000
30,000
40,000
50,000
2002 2008
Source: Working Group Report 12th Five Year Plan,
Department of Science and Technology, IBEF
India ranks ninth globally in terms of the number of scientific
publications
During 2008-2010, India registered an annual
growth rate of scientific publications at ~12 per cent
as against the global average of ~ 4 per cent
India’s share in global research publication
increased from 2.2 per cent in 2000 to 3.5 per cent
in 2010
Total scientific publications in India
Source: Working Group Report 12th Five Year Plan,
Department of Science and Technology, IBEF
Subject Number of publications
2001-05
Number of publications
2006-10 Global share (%)
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%
Plant & animal science 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%
India’s scientific publication record, 2001–10
Name of R&D organisations Applications
filed (2012-13)
Council of Scientific & Industrial Research 202
Defence Research & Development
Organisation 73
Indian Council of Agricultural Research 68
Hetero Research Foundation 62
Department of Biotechnology, Government of
India 28
28,940 35,218
36,812 34,287
39,400 43,197 43,674
0
10,000
20,000
30,000
40,000
50,000
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Patents Filed Patents Granted
Source: Office of Controller General of Patents, Design, Trade Marks and Geographical Indication, Aranca Research
Patent filings have gone up from 28,940 during 2006–07 to
43,674 during 2012–13, representing an increase of ~51 per
cent
Out of the total number of 43,674 patent applications, the
number of applications filed by Indian applicants was 9,911,
indicating around 11 per cent Y-o-Y growth
Total number of patents granted has dropped marginally in
recent years, primarily due to an increase in the disposal of
applications for which the request of examination was
received
Name of institute/university Applications
filed (2012-13)
Indian Institute of Technology 205
Amity University 140
Indian Institute of Science 31
Tamil Nadu Agriculture University 16
National Institute of Pharmaceutical Education &
Research 15
Top 5 Indian applicants for patents from institutes Top 5 Indian applicants for patents from R&D organisations
No of Patents Patenting trends in India
Source: Department of Science & Technology, Aranca Research
Note: Numbers for 2010-11 and 2011-12 are forecasted numbers
Industrial sector spending on R&D has increased over the years
Industrial sector’s share in Gross Expenditure on Research & Development (GERD) improved to 34.2 per cent in
2009–10 from 25.3 per cent in 2002–03
Industrial sector R&D units spent 0.61 per cent of their sales turnover on R&D activities in 2009–10, which is expected to
rise in future
77% 76% 75% 72% 70% 67% 65% 63% 65% 66% 65% 64%
23% 24% 25% 28% 30% 33% 35% 38% 36% 34% 35% 36%
0%
25%
50%
75%
100%
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11* 2011-12*
Government Business Sector
Percentage share of government and industrial sector in GERD
Competitive Rivalry
• Competitive rivalry is low; however, there is indirect competition between
contract scientific research centres due to development needs of their
clients that operate in the same market and are in direct competition with
each other
• Many foreign companies tend to set up their in-house research centres
that may operate in competition with contract R&D centres
Threat of New Entrants Substitute Products
Bargaining Power of Suppliers Bargaining Power of Customers
• The threat of new entrants is low
because of the capital intensive
nature of the business
• Contract or academic research
centres do not have any direct
influence on the market, and
have little bargaining power for
the commercialisation of
technologies developed
• There is no direct influence of
consumers on scientific
research; however, technologies
are developed keeping
consumer needs in mind
• With easy access to talent base
and low operational costs,
companies may look to set up in-
house scientific research centres
Competitive
Rivalry
(Low)
Threat of New
Entrants
(Low)
Substitute
Products
(Medium)
Bargaining
Power of
Customers
(Low)
Bargaining
Power of
Suppliers
(Medium)
Resulting in
Investments from
Multinational
Companies (MNCs) to
cater to the needs of
the local market and
their global client base
strengthening capacity for basic research
strengthening institutional capacity for research
strengthening human capacity for research
Policy support
154,840
192,819
0
50,000
100,000
150,000
200,000
250,000
2006 2009
Source: NSTMIS, Department of Science & Technology
In recent years, the Indian Government has implemented
several fellowship schemes to nurture human capacity for
advanced research in the country
In 2008, launched Innovation in Science Pursuit for
Inspired Research (INSPIRE) scheme, through
which the Government awarded 2,150 research
fellowships for doctoral research and 270 faculty
awards for post doctoral researchers
Following the Government’s initiatives, the number of
researchers per million people has gone up from 140
during 2004–06 to 164 in 2009
663
775
1,127
0
200
400
600
800
1,000
1,200
2010-11 2011-12 2012-13
0.7
1.1
0.0
0.5
1.0
1.5
2006 2010
In millions
Number of researchers in India
Out-turn of scientific & technical
personnel from universities in India INSPIRE fellowship growth profile
Source: World Bank, FICCI, Government of India
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
An expanding middle class and rise in purchasing power of
rural residents have boosted demand for innovation and
development of cheap and durable products that could meet
the local requirements
Per capita income (in USD)
676 767
896 1,026
1,125
1,243
0
500
1,000
1,500
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Source: FICCI, Department of Science & Technology, Zinnov
Note: *Figures Converted to USD’ million at 2013-14 Exchange rate
Lower development cost, rising technology intensity and
growing local demand for top of the line unique technology
products have attracted R&D investments from foreign
companies in India
India is a base for 718 MNCs with over 870 research
centres
More than one-third of the top 1,000 global R&D spenders
have centres in India
About 28 per cent companies with headquarters in Japan,
the EU and APAC have a R&D centres in India
47.4
478.3
0
250
500
750
2002-03 2009-10
191
297
517
699 780
871
0
250
500
750
1,000
Before '00 2001-02 2003-04 2005-06 2007-08 2009-11
USD’ million
Contribution of multinational companies in the
R&D sector*
Total number of MNC R&D centres in India
The key elements of the STI policy are:
• Developing synergies between science, technology and innovation
• Providing a fresh perspective on innovation in an Indian context
• Charting a high-technology path for creating a science, research and innovation system in India
• Promoting proliferation of scientific temper among all sections of the society
• Enhancing skill for applications of science among the young from all social strata
• Making careers in science, research and innovation attractive to the brightest students
• Establishing world class R&D infrastructure for gaining global leadership in some select frontier areas of science
• Positioning India among the top five global scientific powers by 2020
• Migrating R&D outputs into commercial applications by replicating hitherto successful models as well as
establishing new structures
• Facilitating S&T-based high-risk innovations through new mechanisms
• Triggering changes in the mindset and value systems to recognise, respect and reward performances that
create wealth from S&T derived knowledge
Science Technology and
Innovation Policy 2013
Source: News articles, Science & Technology Policy 2013
The Government of India has taken various steps to generate interest and promote investments in the Science &
Technology Sector
12th Five-Year Plan
(2012–17)
Key focal points include:
• Creation of major national facilities under partnerships
• Programmes for centre-state technology partnership
• Building educators for science teaching
• Investments into mega science for creation of R&D infrastructure within India and abroad
under partnerships
Source: News articles, Government websites, swissnex India
National knowledge
network
• A state-of-the-art multi-gigabit (multiples of 10 Gbps) pan-India network is planned to link
some 5,000 nodes in India
• It will be the sole vehicle for international connectivity in future
National innovation
council
• 2010–2020 has been declared the Decade of Innovation to stimulate innovations and
produce solutions for societal needs such as healthcare, energy, infrastructure, water and
transportation
Improving academia • Innovation universities would be set up as public private partnerships to develop new
hubs of education, research and innovation
Source: swissnex India, NSTMIS
Note: *Centre of Excellence are identified using a threshold of minimum of 200 research papers in the top decile of global research (2012)
Total research citations impact factor has increased from 0.68 in 2006–2010 compared to 0.53 for 1996–2000
In 2010, 21.5 per cent of research papers from India had international collaborators
Top Indian Institutions by citation impact*
Indian Institute of Science
Indian Institute of Technology, Kharagpur
Indian Institute of Technology, Kanpur
Tata Institute of Fundamental Research
Bhabha Atomic Research Centre
Indian Institute Chemical Technology
Indian Institute of Technology, Delhi
Indian Institute of Technology, Bombay
National Chemical Laboratory
Indian Institute of Technology, Madras
Government funding Academic research Human capital
East Asia
Korea
China
Thailand
Indonesia
Vietnam
Central & Eastern
Europe
Czech Republic
Romania
Poland
Slovakia
Russia
Hungary
Turkey
Latin America Brazil
Mexico
Less competitive than India In competition with India
Source: World Bank data, NSTMIS, Department of Science & Technology, Aranca Research
Source: Press Release, Department of Science & Technology, NSTMIS
Note: E denotes Estimated
Private sector involvement has increased over the past few
years, but remains low compared to that in other developed
and emerging markets
R&D investment registered nearly twofold increase during
the 2005-06 to 2009-10 period and is expected to grow
eightfold in the next 5 years
1.9
2.4
2.9
3.6
3.3
3.9
4.8
0.0
2.0
4.0
6.0
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11E 2011-12E
USD’ billion
Private sector investments in research &
development
Source: Press Release, Department of Science & Technology, NSTMIS
Company R&D spend (USD’ million) R&D spend (% revenue)
Tata Motors 397.8 1.5%
Prithvi Information 246.3 60.5%
Polaris Software 228.0 67.6%
BHEL 176.3 2.5%
Mahindra & Mahindra 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%
Top 10 companies spending on R&D in India - 2010
• 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
Source: News Articles
Note: Figures converted to USD using INR-USD exchange rate for 2013-14
958.7
483.1
469.6
186.9
171.3
131.4
111.5
45.7
41.7
34.6
Drugs & Pharmaceuticals
Transportation
Information Technology
Agriculture & Agricultural Machinery
Chemicals (other than fertilizers)
Biotechnology
Electricals & Electronics Equipments
Fuels
Telecommunications
Industrial Machinery
In Industrial R&D investments, Drugs and Pharmaceuticals
occupied the first place with a share of 33 per cent, followed
by Transportation (17 per cent), Information Technology (16
per cent), and Agriculture & Agricultural Machinery (7 per
cent) during 2009–10
Investments in Drugs and Pharmaceuticals increased ~74
per cent since 2005–06 and are expected to grow in future
Source: NSTMIS, Press Releases
Note: Figures converted to USD using INR~USD exchange rate for 2009-10
USD’ million
R&D investments in top 10 sectors (2010)
ICT and wireless
technology
• Cloud computing presents endless opportunities in wireless technologies
• Low power devices and devices with higher duty cycles are needed for the future
Pharmaceuticals • India needs inexpensive diagnostic kits with antigens and markers that are specific to
Indian conditions
Water technologies • R&D efforts should concentrate on developing technologies for treatment, recycling,
recovery, reuse and efficient use of water
Manufacturing
technologies • Automation and environmental sustainability are the key focus areas for manufacturing
companies
Material energy • Multi-disciplinary research to combine emerging concepts in nanotechnology with
fundamental metallurgical chemistry is the way forward
Bio-energy • Bio-energy is emerging as a promising alternative to meet rural energy needs in India
Source: FICCI
Source: News Releases, FICCI
Notes: ICT denotes Information & Communication Technology;
E denotes Estimated
Information & Communication Technology (ICT) spending in
India is expected to increase at a CAGR of 5.3 per cent to
USD95.9 billion in 2016
Telecommunication sector, which accounts for 67 per cent
of the Indian ICT market, is expected to drive growth
Key drivers that would accelerate growth of the
sector include increased access to services due to
launch of newer telecom technologies, better
devices, changing consumer behaviour and
emergence of cloud technologies
With usage of wireless technologies expected to grow in
future, low power devices with higher duty cycles need to be
explored
Network infrastructure also needs to be improved as
elimination of congestion in existing network infrastructure is
the need of the hour
66.4
71.5
78.9
86.2
95.9
40
60
80
100
2012 2013E 2014E 2015E 2016E
USD’ billion
Investment in ICT in India
12.6
55.0
0
10
20
30
40
50
60
2009 2020E
Source: FICCI, McKinsey Report on Indian Pharma
Note: E denotes Estimated
Indian pharmaceutical market is expected to expand at a
CAGR of ~14.5 per cent until 2020
Key drivers that will fuel the sector’s growth include
rising income levels, increase in chronic diseases,
better medical infrastructure, wider health insurance
reach and supportive healthcare policies
R&D in the pharmaceutical industry, a high risk and capital
intensive area, is key to growth and is at a nascent stage in
India
Companies need to develop drugs for diseases local to
India and other tropical countries
Competent facilities and workforce needs to be developed
to lead new drug development and pharmaceutical R&D
Overall R&D expense by Indian companies has been
around 5 per cent of sales, and is expected to increase in
coming years
5.0% 5.4% 5.0% 4.8% 4.9%
4.5%
0%
2%
4%
6%
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Indian pharmaceutical market
R&D expenditure as % of sales for
domestic companies
USD’ billion
Source: Science, Technology & Innovation Policy 2013
• The Government’s focus is on prioritising critical R&D areas such as agriculture,
telecommunications, energy, water management, health & drug discovery, materials,
environment and climate variability and change
• The Government is establishing funds for innovation and promoting technologies in
strategic sectors with civilian application potential
• Special incentive mechanisms are being developed to stimulate research in universities
and develop young leaders in science and engineering
• The policy framework is being devised to enable school science education reforms, by
improving teaching methods and science curricula
• Government is promoting investments in basic research to improve research quality to
meet global standards and to address national challenges
• 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
• Promoting multi-stakeholder participation in the Indian R&D system
Focus on critical
technology
development
Human capital
development
Investment in basic
research
Attracting investment
from private sector
Source: Science, Technology & Innovation Policy 2013
• The Government is focussed on setting up inter university research centres to enable
researchers from different disciplines and universities to come together and address the
challenges of Science & Technology and its applications
• Through Science, Technology and Innovation policy, the Government promotes
mechanisms for nurturing technology business incubators and science led
entrepreneurship
• Also promoting incentives for commercialisation of innovations with focus on green
manufacturing
R&D laboratories
collaboration
Promoting innovation
1966 1998 2005 2008 2014
Source: Tata Motor’s Website
A Combination of
Technology and
Imagination,
Tata Motors has been
driving the innovation
tend in the
Indian Automobile
Industry
Production
of first
indigenously
designed
LCV
Establishment
of
Engineering
Research
Centre
Launched
India’s first
indigenously
designed car
The Way
Forward:
Conducting R&D
for low carbon
vehicle
technologies,
including pure
electric vehicles,
hybrid drive trains
and advanced
fuels
Launched
world’s
cheapest
car, Tata
Nano
Department of Science & Technology
Technology Bhavan, New Mehrauli Road
New Delhi – 110016, India
Phone: 91 11 26567373, 26962819
Fax: 91 11 26864570, 26862418
E-mail: [email protected]
Indian National Science Academy
Bahadur Shah Zafar Marg,
New Delhi – 110002, India
Phone: 91 11 23221931, 23221950
Fax: 91 11 23235648, 23231095
E-mail: [email protected]
Indian National Academy of Engineering
117 Nalanda House, IIT Campus,
Hauz Khas, New Delhi 110 016, India
Phone: 91 11 26582475, 26582635
Fax: 91 11 26856635
E-mail: [email protected]
National Academy of Sciences
5, Lajpatrai Road,New Katra
Allahabad - 211 002, India
Phone: 91 532 2640224
Fax: 91 532 2641183
Indian Science Congress Association
14, Dr Biresh Guha Street
Kolkata – 700017, India
Phone: 91 33 22474530
Fax: 91 33 2402551
E-mail: [email protected]
Indian Academy of Sciences
C. V. Raman Avenue, Post Box No 8005
Sadashivanagar, Bangalore 560 080, India
Phone: 91 80 23612546, 23614592, 23612943
Fax: 91 80 23616094
E-mail: [email protected]
CAGR: Compound Annual Growth Rate
FDI: Foreign Direct Investment
FY: Indian Financial Year (April to March)
So FY12 implies April 2011 to March 2012
GOI: Government of India
MNC: Multinational Company
GERD: Gross Expenditure on Research & Development
STI: Science Technology & Innovation
Y-o-Y: Year on Year
INR: Indian Rupee
USD: US Dollar
LCV: Light Commercial Vehicle
PPP: Public Private Partnership
Wherever applicable, numbers have been rounded off to the nearest whole number
Year INR equivalent of one USD
2004-05 44.95
2005-06 44.28
2006-07 45.28
2007-08 40.24
2008-09 45.91
2009-10 47.41
2010-11 45.57
2011-12 47.94
2012-13 54.31
2013-14 60.28
Exchange rates (Fiscal Year)
Year INR equivalent of one USD
2005 45.55
2006 44.34
2007 39.45
2008 49.21
2009 46.76
2010 45.32
2011 45.64
2012 54.69
2013 58.44
Q12014 61.58
Exchange rates (Calendar Year)
Average for the year
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