India has a 22% share in the global engineering research and development(ER&D) outsourcing market, with current revenues of $10 billion expected to grow to $40 billion by the end of the decade. Hopefully, this export-oriented R&D will have spillover effects for local industry and help in improved manufacturing innovation for Indian firms, especially in fast growing sectors.
With over 400 service providers employing nearly two lakh people and revenue of $9-10 billion, ER&D currently contributes 15 per cent of the $60 billion strong Indian IT-BPO export industry. During FY 2011, the cost savings by India-based ER&D Centres was over $20 billion.
Elaborating on sectors expected to have a bright future in India, Pandit said, “The Indian market is booming and as a country, we are no.1 when it comes to ER&D outsourcing. Sectors such as consumer electronics, automotive, energy, telecom and medical electronics have a great future.”
Read more in ‘Future bright for consumer electronics, automotive sectors’ – Indian Express and Business Line : Industry & Economy / Info-tech : Nasscom pegs engineering design market at $40 b by 2020.