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R&D EXPENDITURE/
INDIA
source: www.patentmatics.org/pub2003/
pub3c.htm
www.hollandinindia.org/indiabusiness
guide/TableOfContents.html
www.vibrantgujarat.com/sp/
emerging_technology_bt.html
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By 2020, India is expected to become the world's number-one knowledge production centre… - in 2000-01, India is estimated to have spent US$19 billion (PPP) on R&D, which puts it among the top 10 worldwide;
- despite the growth of the private sector, government funding continues to account for nearly 3/4 of India’s R&D spending. During 1999-2000, the Government’s share of R&D expenditure increased from 76.8 to 79.6%, and the share of industry declined commensurately. In contrast, agriculture got about 13%, science, technology and industry about 15%, health nearly 9%, and information technology a little less than 3%;
- India is among the first few countries in the developing world to have recognised the importance of biotechnology as a tool for advancing growth in the agriculture and health sectors. Over the past two decades, India has developed adequate infrastructure and trained manpower in biotechnology, mainly due to the active support and concerted capacity building efforts of the Department of Biotechnology (DBT). The DBT has established a huge infrastructure of 55 globally networked bio-informatics centres and supports. Presently, 15,000 scientists are estimated to be engaged in India’s biotechnology sector;
- growth in India’s biotechnology sector has been dynamic. The industry grew by 39% to reach a value of US$ 705 million in the fiscal year 2003-04. The biotechnology business in India has the potential to generate annual revenues of US$ 5 billion and a million skilled jobs by 2010;
- Indian pharmaceutical industry is on the threshold of a new era with the introduction of the Intellectual Property Rights (IPR) regime, from 1st Jan 2005. Between 1999 and 2004, the sector has been growing by 15% or more due to the new regime and a low cost manufacturing structure. Worth US$3 billion in 1997, the Indian pharma industry is expected to reach a value of US$9 billion by the end of 2005;
- this growth reflects the growing importance of India on the global pharma map - a position fuelled by a highly innovative process chemistry sector, and a developing biotech sector. The industry is highly scattered, and consists of more than 26,000 enterprises. However, there are less than 250 organised players, including a few multinationals such as Glaxo, Novartis, Hoechst, Abbot Labs, Burroughs Wellcome and Duphar Interfran;
- the TRIPS agreement of the WTO enjoins India to introduce product patent regimes in pharmaceuticals, and accord protection in India to products patented in other member countries after January 1, 1995. However, there is serious concern as to whether Indian product patent provisions would fully address the intellectual property risks of international companies. Several Indian companies are preparing for the product patent regime by increasing R&D and manufacturing outside India in protected markets, notably the US;
- India’s Information-Communications-Technology (ICT) sector has seen the most significant - somewhat revolutionary, even - changes during the past ten years, and has ushered in a phase of services-led economic growth in the economy. The present size of the sector is estimated to be more than US$ 27 billion, composed of US$ 6 billion in information technology systems (computing hardware and software), US$ 10 billion in Information technology services (including software and enabled services such as business process outsourcing, remote location e-processes), US$7 billion in telecommunication services (voice and data services), and US$ 4 billion in telecom equipment;
- according to IDC, a leading international technology research firm, India’s information technology sector is expected to touch US$ 46 bn by 2006, driven by export growth. Domestic IT spending, which was Rs. 248 bn in 2001, is expected to touch Rs.600 bn in 2006, a growth of 21% per annum;
- India is considered to be the source of the highest levels of competence in software development: it exports software to over 102 countries around the globe and one out of every four global giants outsourced their software requirements to India. Leading product companies such as Microsoft, Oracle, Cisco, SAP, Adobe, etc. have set up R&D centres in India and over 185 of the Fortune 500 companies outsource from India;
- software and services registered a turnover of Rs.480 bn (US$10.2 bn) in 2001-02- a growth of 22% over previous year. Of this, exports accounted for Rs 365 bn ($7.68 bn). The total software export from India is growing steadily at a rate of about 30% and is expected to rise further. Revenues for 2002-03 are estimated to be Rs 670 billion ($12.3 bn), including exports of Rs 475bn. The sector is dominated by a few companies, with the top 10 companies accounting for 77% of the export market; (1)
- despite facing a competition from China, Russia and Vietnam, India's software exports are expected to jump seven-fold to US$57 billion by 2008; at that time it is expected to deploy 4 million people and would account for 8% of GDP and 30% of foreign exchange earnings of India;
- large sectors with slow IT penetration rate, such as textile industry and healthcare, are being encouraged by the government and the private sector to adopt IT. In all, information technology industry is going to be one of the forerunners among all, who’d take India into elite league of so called ‘developed’ countries.
Since India gained independence in 1947, the country has consistently lost talented individuals to the developed world…- fortunately for India, the phenomenon of, ‘reverse brain drain’ is enriching its workforce with people having diverse international experience, knowledge of state-of-art technology, management skills and much more. This has made it easier for Multi National Companies (MNCs) to establish their back up offices in India. Companies likely to outsource to India include financial institutions, business conglomerates and technology majors;
- the John F. Welch Technology Centre in Bangalore is General Electric's first and largest R&D centre outside the US. Out of its 2300 employees, 700 of them are young Indians who have chosen to come back to India from the United States after the centre’s inception in 2000. More than 100 other global companies including IBM, Motorola, and Intel have established R&D centres in India during the past 5 years;
- about 70,000 Indian software graduates were estimated to be on jobs in the United States in the year 2000, but their number plummeted to 30,000 in 2002 following the terror attacks;
- according to the UNDP Human Development Report, while the US, Japan and Germany have, on an average, 3,805 research scientists and engineers for every million population, India has only 149; nevertheless, 15% of the scientific population of pharmaceutical and biotechnology companies in the US is of Indian origin;
- 3 million graduates, 700,000 post-graduates and 1,500 PhDs qualify in the scientific stream each year in India.
(1) Software sector comprises two basic sectors: Information Technology (IT) sector and IT Enabled Services – Business Process Outsourcing (ITES-BPO) sector.
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