Science and Technology September 2016

SCIENCE & TECHNOLOGY
SEPTEMBER 2016
For updated information, please visit www.ibef.org
Executive Summary....3
Advantage India...4
Market Overview and Trends.....6
Porter Five Forces Analysis.....12
Growth Drivers14
Opportunities..25
Success Stories.31
Useful Information.34
SEPTEMBER 2016

EXECUTIVE SUMMARY
With a USD1.59 trillion (calculated at base price) economy in FY16 and per capita income
of over USD1,182.88 in 2015-2016, India presents a unique opportunity for companies to
tap the huge consumer base demanding technologically advanced products.
Demand for cheap and durable products that could meet the local requirements drives the
need for innovation
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
Women Scientific programmes to expose women more and more towards research
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
As per Union Budget 2016-17, Government of India allocated USD597.46 million to the
Department of Science and Technology, covering six main objectives including technology
development programmes, partnerships and alliances, policy formulation, strengthening
human capacities, strengthening institutional capacities and societal interventions of S&T.
Large consumer base
Huge talent pool
Policy framework
Rising investments
Source: RBI, India Budget, TechSci Research
SEPTEMBER 2016
ADVANTAGE INDIA
SEPTEMBER 2016

ADVANTAGE INDIA
Huge talent base
Growing demand
Expanding middle class and increasing

affordability are expected to remain key
demand drivers for technologically
advanced products
Third largest technical manpower in the

world
With government and private sector

funding, academia is adapting to the
changing requirements of the business
sector
Demand for products that meet the local

needs is set to accelerate
Advantage
India
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 has continued policy support

in the form of Science, Technology &
Innovation Policy 2013 and the Twelfth
Five-Year Plan (201217)
The new government assured more and

more of support to researchers with lesser
bureaucratic hurdles
Source: Department of Science & Technology, IBEF, FICCI, TechSci Research
SEPTEMBER 2016
MARKET OVERVIEW & TRENDS

SEPTEMBER 2016

EVOLUTION OF SCIENCE & TECHNOLOGY POLICY FRAMEWORK IN INDIA
2016
2015
2014
2013
New Initiatives such as

SWAYAM (Study Webs of ActiveLearning for Young Aspiring
2003
Minds), etc. have been taken to
Science,
support young talent and attract
Technology &
innovation
Innovation Policy
aims to develop
"Innovation of Science Pursuit for
Science &
synergies
Inspire Research (INSPIRE)
Technology Policy between science,
initiative was launched to
to bring science and technology and
communicate with the youth
technology together innovation. Ethnic
population and attract talent to
and emphasize the
the scientific field
diversity and
need for investment varying
The total plan outlay allocated
into research and
under the Union Budget 2015-16
demographics
development to
for the Department of Science
attracted
address national
and Technology is around
investment from
problems.
USD557.1 million
various players.
Scientific and
Technological
(S&T) Activities
Survey 2015-16
aims to collect data
on resources
devoted to R&D in
science and
technology. The
information is
collected from
about 5000 R&D
organizations
present across the
country.
New Initiatives such

as the Science,
Technology,
Innovation and
Creation of
Knowledge (STICK)
framework has been
taken by the Indian
government to
support innovation.
The total plan outlay
allocated under
union budget 201617 for the
Department of
Science and
Technology is
around USD597.46
million .
Source: Department of Science & Technology, Ministry of HRD, Government of India,

Union Budget 2016-17
SEPTEMBER 2016

INDIAN SCIENCE & TECHNOLOGY SYSTEM
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
SEPTEMBER 2016

INDIA HAS A STRONG NETWORK OF SCIENCE & TECHNOLOGY INSTITUTIONS AND TRAINED MANPOWER
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
162 universities award 4,000 doctorates and 35,000 postgraduate degrees annually
The Council of Scientific and Industrial Research runs 38 research laboratories
India ranks 12th in terms of the number of patents filed
India ranks 7th among highly productive countries in science and technology research.
PhD research outputs in science

6641
Research outputs in Science & Technology

(in terms of publications)
M.Phil and doctorate degrees awarded in

science & technology discipline
39815
5851
35947
6334
2012
5267
2013
2013
2014
11659
12754
12943
2008-09
2009-10
2010-11
2011-12
2012-13
Source: Department of Science & Technology, NSTIMS, TechSci Research
SEPTEMBER 2016

STRENGTHNING INDIAS POSITION IN RESEARCH THROUGH INVESTMENT(2)
National Expenditure on R&D increased threefold from
USD5.4 billion during 200405 to USD18 billion during
FY14
National R&D expenditure and its

percentage with GDP
USD billion
During the 11th Five-Year Plan, Indias R&D/GDP ratio

increased to 0.88 per cent
0.92%
Per Capita R&D has gone up from USD4.8 during 200406

to USD9.5 in 2009
0.88%
20.0
18.0
18.0
0.90%
16.0
14.0
0.86%
Indias share in World in Gross Expenditure on Research &

Development (GERD) has increased from 1.9 per cent in
200405 to 2.4 per cent in 200910
9.8
0.84%
6.8
0.82%
10.3
11.2
12.0
10.0
7.6
8.0
5.4
R&D investments have grown in India to around USD66.5

billion by 2015 and are estimated to reach USD71.5 billion
in 2016
6.0
0.80%
4.0
0.78%
2.0
0.76%
0.0
FY05
FY06 FY07 FY08 FY09 FY10

National R&D Expenditure (LHS)
FY14
R&D Expenditure (%of GDP) (RHS)
Source: Department of Science & Technology, NSTIMS, Business Standard, TechSci Research
Note: (1) Estimated Data; (2) - Data is as per latest data available
SEPTEMBER 2016
10

NUMBER OF PATENT APPLICATIONS GOING UP
Top 5 Indian applicants for patents from institutes

Name of Institute/University
Applications
filed (2014-15)
Indian Institute of Technology
337
Janardan Rai Nagar Rajasthan Vidyapeeth

(Deemed) University
53
Indian Institute of Science
46
Amity University
43
Sandip Foundations Sandip Institute of Technology

and Research Center
33
20000
42763
42951
43674
43197
39400
34287
36812
35218
15000
10000
5000
Patents Filed
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
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
50000
40000
30000
20000
10000
0
28940
Out of the total number of 42,763 patent applications, the

number of applications filed by Indian applicants was
12,071 in 2014-2015, indicating around 10.3 per cent Y-o-Y
growth.
Patenting trends in India
2006-07
Patent filings have gone up from 28,940 during 200607 to

42,774 during 201415, representing an increase of 5.01
per cent.
Patents Granted
Top 5 Indian applicants for patents from R&D organisations

Name of R&D organisations
Applications
filed (2014-15)
Council of Scientific & Industrial Research
315
Defence Research & Development Organisation
98
Indian Council of Agricultural Research
68
G.H.R Labs and Research Center
31
Department of Biotechnology, Government of

India
23
Source: Office of Controller General of Patents, Design, Trade Marks and Geographical Indication, Intellectual Property India, TechSci Research
Note: Figures mentioned are as per latest data available
SEPTEMBER 2016
11
PORTER FIVE FORCES ANALYSIS

SEPTEMBER 2016

PORTER FIVE FORCES ANALYSIS
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
The threat of new entrants is

low because of the capital
intensive nature of the business
Bargaining Power of Suppliers
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
SEPTEMBER 2016
Threat of New
Entrants
(Low)
Substitute Products
With easy access to talent base

and low operational costs,
companies may look to set up
in-house scientific research
centres
Bargaining
Power of
Customers
(Low)
Competitive
Rivalry
(Low)
Substitute
Products
(Medium)
Bargaining Power of Customers
There is no direct influence of

consumers on scientific
research; however,
technologies are developed
keeping consumer needs in
mind
Bargaining
Power of
Suppliers
(Medium)
13
GROWTH DRIVERS
SEPTEMBER 2016

STRONG POLICY FRAMEWORK TO PROMOTE INDIA AS A R&D HUB
Policy
support
Strengthening capacity
for basic research
Strengthening
institutional capacity
for research
Resulting in
Investments from
Multinational
Companies (MNCs) to
cater to the needs of
the local market and
their global client base,
R&D expenditure by 25
Indian pharma
companies has
increased by 28.8 per
cent in 2014-15
Strengthening human
capacity for research
In FY15, most of the leading pharma players spent anywhere between
USD58-325 billion on R&D, which represented an increase both in
absolute term as well as in proportion to net revenues (8-11 per cent of
sales)
Source: ICRA, Deloitte, PWC, TechSci Research
Note: R&D - Research and Development
SEPTEMBER 2016
15

STRENGTHENING HUMAN CAPACITIES FOR GROWTH
Number of researchers in India
In recent years, the Indian Government has implemented
several fellowship schemes to nurture human capacity for
advanced research in the country
2,00,000
1,92,819
The period between 2010-20E has been declared as the

Decade of Innovation by the nation and the need for the
establishment of National Innovation Council has been
emphasised. To fuel the growth innovation in science and
technology STI (Science, Technology and Innovation)
Policy 2013 was formed.
In 2008, Government 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 Governments initiatives, the number of
researchers per million people has gone up from 140 during
200406 to 160 in 2010
2009
2015
INSPIRE fellowship growth profile

1190
780
871
FY11
FY12
1000
679
FY13
FY14
FY15
Source: NSTMIS, Department of Science & Technology

Note: Pursuit for Inspired Research (INSPIRE)
SEPTEMBER 2016
16

LOCAL DEMAND ATTRACTING INVESTMENTS FROM MNCs (1/2)
Rising per capita income in India to bring boom in R&D

investments in the country with more and more of foreign
players shifting R&D bases to India
2500.0
10.0%
8.0%
2000.0
6.0%
2207.6
2026.7
1874.9
1747.5
500.0
1617.3
2.0%
1600.9
1000.0
1504.5
4.0%
1514.8
1500.0
1552.5
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)
1430.2
India presents a unique opportunity for companies

manufacturing
technologically
advanced
products,
registering USD1.59 trillion economy and per capita income
of over USD1,182.88 in FY16.
0.0
0.0%
-2.0%
-4.0%
GDP per capita, current prices
Growth Rate
Source: IMF, World Bank, India Budget, Government of India Press

Information Bureau Government of India, Ministry of Statistics and
Programme Implementation
Note: E- Estimates, F - Forecast
SEPTEMBER 2016
17

LOCAL DEMAND ATTRACTING INVESTMENTS FROM MNCs (2/2)
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,
making it one of the largest outsourcing provider in R&D segment
R&D headcount by G500 (000)

595
489
229
More than one-third of the top 1,000 global R&D spenders have
centres in India. Around 50 per cent of the global 500 companies
present have more than 10 per cent of the global headcount in
India
313
366
176
About 28 per cent companies with headquarters in Japan, the EU

and APAC have a R&D centres in India
2013
R&D headcount
There is a potential to create 200,000 R&D jobs by Global 500

companies in the next five years. During 2013-18, R&D headcount
is expected to increase at a CAGR of 15.8 per cent
2018
Remaining addressable population
Total number of MNC R&D centres in India
Number of R&D centers for global 500 companies, 2014
699
780
871
1,031
1,165
517
17
48
4
55
191
72
80
28
20
83
52
46
Top 50
Top 100
100- 200
Present
SEPTEMBER 2016
45
200-300
300-400
Not present
400-500
297
Before 2001-02 2003-04 2005-06 2007-08 2009-11 2011-13 2014-16

'00
Source: FICCI, Department of Science & Technology, Zinnov, TechSci Research
Note: Figures mentioned are as per latest data available
18

FAVOURABLE POLICY MEASURES AIDING GROWTH
Science Technology and
Innovation Policy 2013
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
Encouraging private sector to invest in research and development in Science & Technology.
Setting up of large scale R&D facilities via PPP mode.
Setting up of regulatory framework for sharing IPRs between inventors and investors.
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
Increasing R&D spending to 2.4 per cent of GDP by 2034
Source: News articles, Science & Technology Policy 2013
SEPTEMBER 2016
19

KEY GOVERNMENT INITIATIVES(1/2)
The Government of India has taken various steps to generate interest and promote investments in the Science &
Technology sector
12th Five-Year Plan

(201217)
National knowledge
network
National Innovation
Council
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
Creation of proper institutional framework in science & technology institutions to enhance
R&D activities.
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
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
Improving Academia
Innovation universities would be set up as public private partnerships to develop new

hubs of education, research and innovation
The Educational market in India has the potential of reaching USD110 billion by FY15
with the increasing demand for quality education
Source: News articles, Government websites, swissnex India
SEPTEMBER 2016
20

KEY GOVERNMENT INITIATIVES(2/2)
The Government of India has taken various steps to generate interest and promote investments in science & technology
sector
National Council for

Science & Technology
Communication
(NCSTC)
Big Data Initiative

(2016)
Key focal points include:

Aims at promoting scientific thinking.
Communicating science & technology to masses using digital media, folk media and
digital media.
Focus on training in science and technology communication, incentive programmes,
production & dissemination of S & T software, development and research in S&T.
Important initiatives under NCSTC include Mathematics Awareness Resources &
Initiatives (MARI), campaigns over Year of Scientific Awareness, the National Science
Day, the National Childrens Science Congress, Science Express, etc.
An innovative R&D perspective to promote big data science, technology and applications
within the country.
Aims at developing core generic technologies, tools and algorithms for wide applications
in industries, government and academia.
Extraction of useful knowledge hidden in in-size data repositories.
Understanding the current status of industry in terms of policy framework, distinct players
providing services across sectors, market size, SWOT of industry, etc.
Source: News articles, Government websites, swissnex India
SEPTEMBER 2016
21

INDIA AS CENTRE OF EXCELLENCE
In 2015, Punjab University has been acknowledged as Indias leading science institution, based on its research papers
published during 2010-14. It had the highest citation impact of 1.4
Top Indian Institutions by citation
Citation
impact(1)
Impact
Punjab University
1.4
Tata Institute of Fundamental

Research
1.39
Indian Association for the Cultivation of

Science
1.28
CSIR Chemistry and Physics
1.18
Indian Institute of Technology Bombay
1.15
Indian Institute of Science Bangalore
1.11

Guwahati
1.07
CSIR Industry and Standards
1.07

Kharagpur
1.06
Indian Institute of Technology Madras
1.03
Source: swissnex India, NSTMIS

Note: (1)Centre of Excellence are identified using a threshold of minimum of 200
research papers in the top decile of global research (2014);
As per Latest Data available
SEPTEMBER 2016
22

ATTRACTING INVESTMENTS FROM PRIVATE SECTOR
In 2016, India ranked 6th in terms of R&D spending, across the
world and is likely to overtake Germany and South Korea by 2018.
In 2016, R&D investments in India was estimated 0.85 per cent of
GDP, which is expected to further increase to 2.4 per cent of GDP
by 2034.
R&D investment to register nearly twofold increase during 2020
and reach USD 38 billion
Engineering R&D market is expected to increase by a CAGR of 14
per cent to reach USD42 billion by 2020 whereas the outsourced
engineering services market in India would reach USD15 billion by
2020, growing at a CAGR of 13 per cent
Top 10 companies spending on R&D in India 2014-15

Company
Private sector investments in Research & Development

USD billion
4.5
3.6
1.9
FY06
2.4
FY07
R&D Spend (USD million)
R&D Spend (% Revenue)
Tata Motors
Prithvi Information(1)
Polaris Software(3)
BHEL
Mahindra & Mahindra
Lupin
Infosys(3)
Reliance Industries
Core Education &
Technologies Limited(2)
365.63
246.3
0.62
155.67
235.43
183.20
63.40
202.39
0.84%
60.5%
0.22%
3.3%
3.38%
8.87%
0.8%
0.31%
96.2
53.4%
Bharat Electronics
83.86
8.2%
2.9
FY08
FY09
3.3
FY10
FY14
Source: Press Release, Department of Science & Technology, NSTMIS, TechSci Research
Notes: E denotes Estimated, (1) Data till 2010, (2) Data Till 2014, (3) Data Till 2016
SEPTEMBER 2016
23

ATTRACTING INVESTMENTS IN THE R&D SPACE
In 2015, Honda invested USD98.26 million, to accelerate its manufacturing capacity and R&D capabilities,
at its Greater Noida and Tapukara (Rajasthan) plants.
In 2014, investing ~USD82.9 million across 5 units of R&D and also setting up a new R&D unit.
Hero MotoCorp spends USD118.4 million in their R&D expenditure in, FY15.
Hero MotoCorp opened a new R&D center in Jaipur with an investment of USD129.85 billion, in FY16.
In 2015, Amway opened a high-end manufacturing facility and R&D center in Tamil Nadu with an
investment of USD100 million.
In 2015, the company made plans to double its business in the country and upscaling the headcount by
hiring 200-250 engineers annually for the next three-four years.
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, innovation campus to start by 2017 in Mumbai.
USD2074 million has been spent on R&D in 2014.
BASF estimated to invest 10.5 million in R&D in 2015.
BASF opened a new R&D center in Germany in 2016, for biological crop protection and seed solutions.
In 2014, the company invested USD3 million in Halol Manufacturing Plant
Source: Company Websites, News articles
Note: Figures converted to USD using INR-USD exchange rate for 2013-14
SEPTEMBER 2016
24
OPPORTUNITIES
SEPTEMBER 2016

R&D OPPORTUNITIES IN VARIOUS SUB SECTORS IN INDIA
ICT and wireless
technology
Pharmaceuticals and
Health Care
Establishment of Software Technology Parks of India (STPIS)

National Policy of IT aims at bringing the power of ICT within the reach of all its citizens to
enable India to emerge as a global hub for IT by 2020
Cloud computing presents endless opportunities in wireless technologies
3rd largest pharmaceuticals market by 2020

USD55 billion in revenues by 2020 and USD 26.1 billion in genetics by 2016
A new Health Policy 2015-2025 to focus on healthcare for all holistically
Manufacturing
technologies
Material energy
Bio-energy
Automation and environmental sustainability are the key focus areas for manufacturing
companies
The National Manufacturing Policy targets at creating 100 million additional jobs in the
sector by 2025
Planned expenditure in R&D in manufacturing sector is estimated to increase by 63 per
cent in 2016-17 as compared with that in 2015-2016.
Multi-disciplinary research to combine emerging concepts in nanotechnology with

fundamental metallurgical chemistry is the way forward
Bio-energy is emerging as a promising alternative to meet rural energy needs in India

Targets set by Bioenergy Programme: By 2020, 20 per cent blending of fossil fuels will be
done, cost effective production system for algal biofuel, next generation biofuels produced
from agricultural waste
Water technologies
SEPTEMBER 2016
The water demand of industry will account for 8.5 per cent and 10.1 per cent of the total
fresh water abstraction in 2025 and 2050 respectively
R&D efforts should concentrate on developing technologies for treatment, recycling,
recovery, reuse and efficient use of water
Source: Make In India, FICCI
26

ICT EVOLVING IN INDIA AT AN UNPRECEDENTED RATE
Information & Communication Technology (ICT) spending in
India is expected to increase at a CAGR of 9.63 per cent to
USD95.9 billion during 2012-16F
Investment in ICT in India

USD billion
Telecommunication sector, which accounts for 67 per cent

of the Indian ICT market, is expected to drive growth
95.9
86.2
78.9
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
2012
71.5
2013
2014
2015E
2016F
Source: News Releases, FICCI

Notes: ICT denotes Information & Communication Technology,
E denotes Estimated, F denoted Forecasted
According to NASSCOM, the total ICT spending allocated

for Smart Cities in India during the Union Budget 2014-15
was around USD30-40 billion
SEPTEMBER 2016
27

RISING R&D ACTIVITIES IN THE INDIAN PHARMACEUTICAL SECTOR
Indian pharmaceutical market is expected to expand at a
CAGR of 12.89 per cent during 2015-2020
Indian pharmaceutical market

USD billion
55
Key drivers that will fuel the sectors growth include

rising income levels, increase in chronic diseases,
better medical infrastructure, wider health insurance
reach and supportive healthcare policies
30
Creation of new drug testing laboratories and further

strengthening of 31 existing state laboratories
A weighted tax deduction is given under section 35(2AA) of
the Income Tax Act
Allocation of USD364.96 million to set up 4 more institutions
of the stature of AIIMS in J&K, Punjab, Tamil Nadu,
Himachal Pradesh and Assam. Another AIIMS to be set up
in Bihar.
Setting up of projects in special areas such as the NorthEast, Jammu & Kashmir, Himachal Pradesh and
Uttarakhand
Companies need to develop drugs for diseases local to
India and other tropical countries
Overall R&D expense by Indian companies has been
around 5 per cent of sales, and is expected to increase in
coming years
SEPTEMBER 2016
2015
2020F
R&D spending by top six pharma giant FY16 (upto

September 2015)
(USD million)
351.67
198.59
244
164
28
Sun
Dr Reddy Lupin
Pharma
Cipla
Cadila
85
58
Wockhart Aurbindo
Source: Make in India, FICCI, Ministry of Chemicals & Fertilizers- Department

of Pharmaceuticals, TechSci Research
Note: F denotes Forecasted, (1): For FY15
(2): up to Dec 2015, (3): up to March 2016
R&D - Research and Development
28

THE WAY FORWARD (1/2)
India Innovation Growth
Program
Human capital
development
Investment in basic
research
Attracting investment
from private sector
The aim is to accelerate innovative Indian technologies into the global market
This programme is a joint initiative of FICCI, Dept. of Science and Technology, Govt. of
India, and others
The Governments focus is on using the world class commercialization strategies and
business development assistance to expand in the global market
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
Leveraging international S&T co-operation, the government has planned co-investment of

resources for joint initiatives with Australia, Canada, Germany, etc.
The government has its focus on investing in research & development of technologies that
address the needs of rural India
In FY16, Indias investment in science and research sector, is estimated to be 0.9 per cent
of its GDP.
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

Source: Science, Technology & Innovation Policy 2013,
Department of Science and Technology
SEPTEMBER 2016
29

THE WAY FORWARD (CONTD.) (2/2)
R&D laboratories
collaboration
The Government is focused 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
In FY16, India and UK collaborated as R&D partners in Solar Alliance and Nano Material
Research.
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
Promoting innovation
Source: Science, Technology & Innovation Policy 2013
SEPTEMBER 2016
30
SUCCESS STORIES
SEPTEMBER 2016

SUCCESS STORIES: TATA MOTORS LEADING THROUGH INNOVATION
2016: Products
anticipated to be
launched in 2016: Tata
Nexon, Tata Hexa, Tata
Kite Sedan, Tata
Megapixel, Tata Indica
Vista Electric
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
Launched
Indias first
indigenously
designed car
Launched
worlds
cheapest
car, Tata
Nano
Launched Prima
LX Trucks 6 new
models in the cargo
segment and 4 new
models in tippers,
along with various
others
Introduced
new SIGNA
range of
commercial
vehicles
Feb 2016
Establishment
of engineering
research
centre
FY16(1)
USD20.08
Billion
turnover
FY15
USD43.75
Billion
turnover
1966
1998
2005
2008
2014
2015
2016
Source: Tata Motors website

Notes: (1) Excluding Jaguar and Land Rover, LCV - Light Commercial Vehicle;
(1) - Data is for Half Year Ended September 2015
SEPTEMBER 2016
32

INFOSYS: NURTURING INNOVATION IN IT
Indian IT patent applications ( FY14)
Infosys has 3rd highest number of patents applications in

India.
Tata Consultancy
Research activity for different areas is allocated amongst

dedicated labs such as Software Engineering lab,
Convergence lab, Security and Privacy lab, Distributed
Computing lab and E-Com lab.
During FY12-16, the companys revenues increased at a
CAGR of 7.30 per cent to USD9.54 billion from USD7.20
billion in FY12.
Samsung R&D Institute India

Infosys
Samsung India Software Operations
Private Limited
Wipro Limited

(Collective)
During the same period, net profit grew at a CAGR of 3.82

per cent to USD2.06 billion from USD1.77 billion in FY12.
Infosys spent USD63.40 million in R&D expenses during
FY16(1)
Income and net profit (USD Billion)

10
2.5
8
6
1.7
1.5
2.01
1.8
1.7
1.5
6.9
7.4
8.2
8.7
9.54
Source: Office of the Controller General of Patents,

Designs and Trademarks Annual Report, Company
Annual Reports, TechSci Research
Note: (1) - Data is for FY15;
2.05 1
FY11
FY12
FY13
FY14
FY15
FY16*
2
0
0
Sales
SEPTEMBER 2016
0.5
Net Profit
33
USEFUL INFORMATION
SEPTEMBER 2016

AUTONOMOUS & PROFESSIONAL BODIES (1/2)
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: dstinfo@nic.in
Indian National Science Academy

Bahadur Shah Zafar Marg,
New Delhi 110002, India
Phone: 91 11 23221931, 23221950
Fax: 91 11 23235648, 23231095
E-mail: esoffice@insa.nic.in
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: inae@nda.vsnl.net.in
SEPTEMBER 2016
35

AUTONOMOUS & PROFESSIONAL BODIES (2/2)
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: iscacal@vsnl.net
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: office@ias.ernet.in
SEPTEMBER 2016
36

GLOSSARY
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
SEPTEMBER 2016
37

EXCHANGE RATES
Exchange rates (Fiscal Year)
Year
INR equivalent of one USD
200405
44.81
200506
44.14
200607
45.14
200708
Exchange rates (Calendar Year)

Year
INR equivalent of one USD
2005
43.98
2006
45.18
40.27
2007
41.34
200809
46.14
2008
43.62
200910
47.42
2009
48.42
201011
45.62
2010
45.72
201112
46.88
201213
54.31
2011
46.85
201314
2012
60.28
53.46
2013
58.44
2014-15
61.06
2014
61.03
2015-16
65.46
2015
64.15
2016-2017E
66.95
2016 (Expected)
67.22
SEPTEMBER 2016
Source: Reserve bank of India,

Average for the year
38

DISCLAIMER
India Brand Equity Foundation (IBEF) engaged TechSci to prepare this presentation and the same has been
prepared by TechSci in consultation with IBEF.
All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The
same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any
medium by electronic means and whether or not transiently or incidentally to some other use of this presentation),
modified or in any manner communicated to any third party except with the written approval of IBEF.
This presentation is for information purposes only. While due care has been taken during the compilation of this
presentation to ensure that the information is accurate to the best of TechSci and IBEFs knowledge and belief, the
content is not to be construed in any manner whatsoever as a substitute for professional advice.
TechSci and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in
this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of
any reliance placed on this presentation.
Neither TechSci nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission
on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.
SEPTEMBER 2016
39

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SCIENCE & TECHNOLOGY

For updated information, please visit www.ibef.org

SCIENCE & TECHNOLOGY

Market Overview and Trends.....6

Porter Five Forces Analysis.....12

For updated information, please visit www.ibef.org

SCIENCE & TECHNOLOGY

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

Large consumer base

Huge talent pool

Source: RBI, India Budget, TechSci Research

For updated information, please visit www.ibef.org

SCIENCE & TECHNOLOGY

SCIENCE & TECHNOLOGY

Expanding middle class and increasing

Third largest technical manpower in the

With government and private sector

Demand for products that meet the local

Cheap labour costs and easy access to

Multinational companies are setting up

Government has continued policy support

The new government assured more and

Source: Department of Science & Technology, IBEF, FICCI, TechSci Research

For updated information, please visit www.ibef.org

SCIENCE & TECHNOLOGY

MARKET OVERVIEW & TRENDS

SCIENCE & TECHNOLOGY

New Initiatives such as

New Initiatives such

Source: Department of Science & Technology, Ministry of HRD, Government of India,

For updated information, please visit www.ibef.org

SCIENCE & TECHNOLOGY

For updated information, please visit www.ibef.org

SCIENCE & TECHNOLOGY

PhD research outputs in science

Research outputs in Science & Technology

M.Phil and doctorate degrees awarded in

Source: Department of Science & Technology, NSTIMS, TechSci Research

For updated information, please visit www.ibef.org

SCIENCE & TECHNOLOGY

National R&D expenditure and its

During the 11th Five-Year Plan, Indias R&D/GDP ratio

Per Capita R&D has gone up from USD4.8 during 200406

Indias share in World in Gross Expenditure on Research &

R&D investments have grown in India to around USD66.5

FY06 FY07 FY08 FY09 FY10

R&D Expenditure (%of GDP) (RHS)

For updated information, please visit www.ibef.org

SCIENCE & TECHNOLOGY

Top 5 Indian applicants for patents from institutes

Indian Institute of Technology

Janardan Rai Nagar Rajasthan Vidyapeeth

Indian Institute of Science

Sandip Foundations Sandip Institute of Technology

Total number of patents granted has dropped marginally in

Out of the total number of 42,763 patent applications, the

Patenting trends in India

Patent filings have gone up from 28,940 during 200607 to

Top 5 Indian applicants for patents from R&D organisations

Council of Scientific & Industrial Research

Defence Research & Development Organisation

Indian Council of Agricultural Research