ER&D exports to touch $45 b by 2020

ER&D exports to touch $45 b by 2020

Indian engineering R&D exports which crossed $10 billion in fiscal 2012, would reach $37-45 billion by 2020 as the Indian economy witnesses increased digitisation, thus driving increased engineering R&D (ER&D) spends, according to a Nasscom report.

The report noted that corporate outsourcing spends led by the chemical, medical and automotive sectors are expected to dominate the outsourced portion of India’s domestic ER&D forecasted to reach $7 billion by 2020, a growth rate of 29 per cent.
Global trend

It said that despite turbulent headwinds, global ER&D spend surpassed $1.3 trillion in 2011 and is expected to touch $1.6 trillion by 2020.

“This growth was largely driven by strong recovery in Corporate ER&D post-2009, reaching $541 billion in 2011. The Asiatic region leads this growth from the front and will contribute approximately 45 per cent of the global ER&D spends by 2020,” the report noted.
It also said that the key verticals that will have the maximum share in this ER&D spend will be automotive, consumer electronics and telecom surpassing semi-conductors, computing systems, and machinery.

Commenting on the Nasscom report, KPIT Cummins Chairman and Group CEO Ravi Pandit said that India is differentiated from rest of the world as it has the right kind of talent and since offshoring has moved away from only a cost arbitrage towards efficiency and innovation, India has limitless opportunity in the field.