Engineering innovation: Time for India to lead the world

Engineering innovation: Time for India to lead the world?

During the COVID-19 epidemic, everyone learned the value of self-reliance or being Aatmanirbhar. With that in mind and the eco-system available, India is now seeking to position itself as the world’s engine room through Engineering Research & Development (ER&D).

The government’s emphasis on Make in India is not only a visionary statement but also a necessity given the current rate of technological density, transformation and digital adoption. In the areas of artificial intelligence (AI), cloud computing, mobility, green technology and health technology, India has made remarkable progress.

According to UNESCO’s statistics, the global expenditure on research and development (R&D) has crossed $1.7 trillion. Indian businesses are currently pushing the boundaries of innovation by taking R&D initiatives seriously. A considerable boost to the industry has come from the government’s investment of RS. 76,000 crores under the Design-Linked Incentive (DLI) scheme for domestic semiconductor R&D and manufacturing

Now apart from government, companies are also spending money and time on developing R&D in the country. According to industry body NASSCOM, India’s share of the global engineering and research and development market will grow at a compounded annual growth rate (CAGR) of 12-13 percent to reach USD 63 billion by 2025.

What is making India a popular choice for ER&D services?

India is quickly establishing itself as a hub for innovation and technology by leveraging its strong and vibrant start-up ecosystem. According to the Deloitte and NASSCOM 2022 Global Engineering R&D Pulse Survey, 85 percent of organisations use a Global Capability Centre (GCC) for their ER&D activities.

In India, there are more than 1,250 Global Capability Centres (GCCs), where companies can outsource their product development and receive product engineering services. These GCCs are home to some of the largest companies, many of which have their largest or second-largest R&D centres located in the country.

Furthermore, rapid technological advancements, shifting consumer preferences and evolving business models are forcing companies to reconsider their priorities. This requires new collaboration for OEMs (original equipment manufacturer) as well as a fundamental shift in how they approach technology development and innovation.

This is where India’s engineering research and development comes into play as it can offer;

Sustainability: India’s history of creating environmentally friendly goods and services can be helpful as climate change and environmental sustainability become increasingly crucial to OEMs.
Security: Indian firms have demonstrated their ability to provide a secure environment for handling sensitive data and protecting intellectual property, which serves as the foundation for a mutually beneficial relationship.
Speed: Design/engineering automation can significantly reduce the time-to-market for new products by outsourcing designing, prototyping and testing.

There are also some measures that can be taken to seal the deal for India;

Talent development: Currently, the nation employs about 700,000 engineers in ER&D. In the next five years, a market worth $100 billion will require the services of millions more engineers. So, nurturing talent becomes extremely important. Prime Minister Narendra Modi unveiled I-STEM, a national gateway for science, technology, engineering and mathematics in January 2022. This evolving hub will inspire and sustain the work of scientists and researchers while contributing to the growth of the R&D community.
Global awareness: India aspires to become a leader in innovation and climb the engineering value chain globally, necessitating not only a change in engineers’ mind-sets, but also a greater awareness of the outside world- from cultural quirks that affect end-user tastes and purchase behaviour to nation-specific techno-legal regulatory environments that OEMs must operate within. In addition, the Indian engineers must be given a global exposure and first-hand experience with the customers for whom they are designing.
Involvement of government: The success of India’s ER&D sector will be significantly influenced by the government’s capacity to provide incentives and beneficial tax policies, as well as by its ability to negotiate trade tariffs and other international business-affecting factors, such as ease of doing business and the establishment of innovation clusters across various themes like sustainable mobility, accessible healthcare, and advanced manufacturing digital stack.

India has been progressively moving up the innovation and R&D curve. The country is making several efforts to take the lead in R&D globally. For India to become a business and innovation powerhouse, all it requires is consistent growth.

Our dream and reality of becoming Aatmanirbhar is closer than we can imagine!

Shiv Bhambri, Country manager, RS India