Science and Technology February 2017

SCIENCE & TECHNOLOGY
FEBRUARY 2017 For updated information, please visit www.ibef.org 1

❖ Executive Summary……………..…………..3
❖ Advantage India………………………..…….4
❖ Market Overview and Trends………..……...6
❖ Porter Five Forces Analysis..……………...12
❖ Growth Drivers………………………………14
❖ Opportunities……………………….……….25
❖ Success Stories…………………….………31
❖ Useful Information………………….………34

EXECUTIVE SUMMARY
• With a USD1.59 trillion (calculated at base price) economy in FY16 & per capita income of
over USD1,182.88 in 2015-2016, India presents a unique opportunity for companies to tap
Large consumer base 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
Huge talent pool • Global share in scientific publications rising at a CAGR of ~12 per cent
• India ranks 8th in the world in terms of number of students graduating in science &
engineering stream
• Policies aimed at projecting India as a Science & Technology powerhouse & promoting
Policy framework both public & 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 2017-18, Government of India allocated USD597.46 million to the
Rising investments Department of Science & Technology, covering 6 main objectives including technology
development programmes, partnerships & alliances, policy formulation, strengthening
human capacities, strengthening institutional capacities & societal interventions of S&T.
FEBRUARY 2017 Source: RBI, India Budget, TechSci Research For updated information, please visit www.ibef.org 3
ADVANTAGE INDIA
ADVANTAGE INDIA
Growing demand Huge talent base

• Expanding middle class and increasing • Third largest technical manpower in the world
affordability are expected to remain key demand
drivers for technologically advanced products • With government & private sector funding,
academia is adapting to the changing
• Demand for products that meet the local needs requirements of the business sector
is set to accelerate
Advantage
India
Rising investments Policy support
• Cheap labour costs and easy access to talent • Government has continued policy support in the
have been attracting investments from foreign form of Science, Technology & Innovation Policy
companies in recent years 2013 & the 12th Five-Year Plan (2012–17)
• Multinational companies are setting up their • The new government assured more and more of
R&D centres in India support to researchers with lesser bureaucratic
hurdles
Source: Department of Science & Technology, IBEF, FICCI, TechSci Research

MARKET OVERVIEW & TRENDS

EVOLUTION OF SCIENCE & TECHNOLOGY POLICY FRAMEWORK IN INDIA
2016
2015
2014
• Scientific and • New Initiatives such

2013
Technological as the Science,
(S&T) Activities Technology,
•New Initiatives such as
Survey 2015-16 Innovation &
SWAYAM (Study Webs of Active-
aims to collect data Creation of
Learning for Young Aspiring
2003 on resources Knowledge (STICK)
• Science, Minds), etc. have been taken to
devoted to R&D in framework has been
Technology & support young talent and attract
science and taken by the Indian
Innovation Policy innovation
technology. The government to
aims to develop • "Innovation of Science Pursuit for
information is support innovation.
• Science & synergies Inspire Research (INSPIRE)“
Technology Policy between science, collected from • The total plan outlay
initiative was launched to
to bring science and technology and about 5000 R&D allocated under
communicate with the youth
technology together innovation. Ethnic organizations union budget 2016-
population and attract talent to
and emphasize the present across the 17 for the
diversity and the scientific field
need for investment varying country. Department of
• The total plan outlay allocated
into research and Science &
demographics under the Union Budget 2015-16 Technology is
development to attracted for the Department of Science
address national around USD597.46
investment from and Technology is around million .
problems. USD557.1 million
various players.
Source: Department of Science & Technology, Ministry of HRD, Government of India,
Union Budget 2016-17
INDIAN SCIENCE & TECHNOLOGY SYSTEM
R&D bodies
Government
funding &
R&D in NGO development
groups agencies
Indian STI
system
R&D by
multinational Academic sector
companies
Industrial R&D Socio Economic

Systems Ministries
Source: Changing Indian STI Landscape Presentation, Department of Science & Technology
Note: STI refers to Science Technology & Innovation
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.
Source: Department of Science & Technology, NSTIMS, TechSci Research

As per the latest available information

STRENGTHNING INDIA’S POSITION IN RESEARCH THROUGH INVESTMENT(2)
During the 11th Five-Year Plan, India’s R&D/GDP ratio National R&D expenditure and its
increased to 0.88 per cent percentage with GDP
USD’ billion
R&D investments have grown in India to around USD66.5 billion
by 2015 and are estimated to reach USD71.5 billion in 2016 0.92% 20.0
18.0
18.0
As of December 2016, Government of Arunachal Pradesh 0.90%
planned to allocate funds worth USD22.92-30.55 million for the 16.0
development of science & technology sector in the state. 0.88%
14.0
A series of new investments were recently announced by Cisco 0.86% 11.2 12.0
10.3
India to enhance cyber security infrastructure in India. It will 9.8
0.84% 10.0
enable to build transparent & secure digital infrastructure
7.6
environment for accelarating India’s digital transformation. For 0.82% 6.8 8.0
strategic cyber security cooperation, 5.4 6.0
0.80%
Cisco India has signed an MoU with Indian Computer 4.0
Emergency Response Team (CERT-In) to establish a threat 0.78%
2.0
intelligence sharing program.
0.76% 0.0
FY05 FY06 FY07 FY08 FY09 FY10 FY14
National R&D Expenditure (LHS)
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

NUMBER OF PATENT APPLICATIONS GOING UP
Patent filings have gone up from 28,940 during 2006–07 to
Patenting trends in India
42,774 during 2014–15, representing an increase of 5.01
per cent. 50000 20000
40000 15000
Out of the total number of 42,763 patent applications, the 30000
10000
42951
28940
35218
36812
34287
39400
43197
43674
42763
number of applications filed by Indian applicants was 20000
10000 5000
12,071 in 2014-2015, indicating around 10.3 per cent Y-o-Y
0 0
growth.
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
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 Patents Filed Patents Granted
received
Top 5 Indian applicants for patents from institutes Top 5 Indian applicants for patents from R&D organisations
Applications Applications
Name of Institute/University Name of R&D organisations
filed (2014-15) filed (2014-15)
Council of Scientific & Industrial Research 315
Indian Institute of Technology 337
Defence Research & Development Organisation 98
Janardan Rai Nagar Rajasthan Vidyapeeth
53 Indian Council of Agricultural Research 68
(Deemed) University
Indian Institute of Science 46
G.H.R Labs and Research Center 31
Amity University 43
Sandip Foundation’s Sandip Institute of Technology Department of Biotechnology, Government of
33 23
and Research Center India
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

PORTER FIVE FORCES ANALYSIS

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 Threat of New
each other Entrants
• Many foreign companies tend to set up their in-house research centres (Low)
that may operate in competition with contract R&D centres
Threat of New Entrants Substitute Products
• The threat of new entrants is • With easy access to talent base

low because of the capital and low operational costs, Bargaining Competitive Substitute
intensive nature of the business companies may look to set up Power of Rivalry Products
in-house scientific research Customers (Low) (Medium)
centres (Low)
Bargaining Power of Suppliers Bargaining Power of Customers

Bargaining
• Contract or academic research • There is no direct influence of Power of
centres do not have any direct consumers on scientific Suppliers
influence on the market, and research; however, (Medium)
have little bargaining power for technologies are developed
the commercialisation of keeping consumer needs in
technologies developed mind

GROWTH DRIVERS
STRONG POLICY FRAMEWORK TO PROMOTE INDIA AS A R&D HUB
Policy
support
Strengthening capacity
for basic research
Investments from
Multinational
Companies (MNCs) to
cater to the needs of
Strengthening the local market and
institutional capacity Resulting in their global client base,
for research 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

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

“Decade of Innovation” by the nation & the need for the 1,92,819
establishment of National Innovation Council has been
emphasised. To fuel the growth innovation in science &
technology STI (Science, Technology & Innovation) Policy
2013 was formed. 2009 2015
In 2008, Government launched Innovation in

Science Pursuit for Inspired Research (INSPIRE) INSPIRE fellowship growth profile
scheme, through which the Government awarded
2,150 research fellowships for doctoral research &
270 faculty awards for post doctoral researchers 1190
1000
780 871
As of December 2016, India & Israel announced plans to 679
support R&D programmes in science & technology sector,
with an investment of USD1 million, by both nations
FY11 FY12 FY13 FY14 FY15
Source: NSTMIS, Department of Science & Technology

Note: Pursuit for Inspired Research (INSPIRE)

LOCAL DEMAND ATTRACTING INVESTMENTS FROM MNCs … (1/2)
Per capita income (in USD)
India presents a unique opportunity for companies
manufacturing technologically advanced products, 2500.0 10.0%
registering USD1.59 trillion economy & per capita income of 8.0%
USD1719 in FY16. 2000.0
6.0%
1500.0 4.0%
An expanding middle class & rise in purchasing power of
rural residents have boosted demand for innovation & 1000.0 2.0%
development of cheap & durable products that could meet 0.0%
1430.2
1552.5
1514.8
1504.5
1600.9
1617.3
1874.9
2026.7
2207.6
500.0
1719
the local requirements -2.0%
0.0 -4.0%
Rising per capita income in India to bring boom in R&D
investments in the country with more & more of foreign
players shifting R&D bases to India
GDP per capita, current prices Growth Rate
As of December 23, 2016, Maruti Suzuki announced plans
to invest USD305.53 million, during 2017-2019, in its R&D
center in Rohtak, Haryana. Source: IMF, World Bank, India Budget, Government of India Press
Information Bureau Government of India, Ministry of Statistics and
Programme Implementation
Qualcomm, plans to invest US$8.5 million on design
Note: E- Estimates, F - Forecast
initiatives in India, which would include funding its
innovation labs at Hyderabad & Bangalore, for R&D.

LOCAL DEMAND ATTRACTING INVESTMENTS FROM MNCs … (2/2)
Lower development cost, rising technology intensity and growing R&D headcount by G500 (‘000)
local demand for top of the line unique technology products have
attracted R&D investments from foreign companies in India,
595
making it one of the largest outsourcing provider in R&D segment
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 313
present have more than 10 per cent of the global headcount in
366
India
176
About 28 per cent companies with headquarters in Japan, the EU 2013 2018
& APAC have a R&D centres in India R&D headcount Remaining addressable population
There is a potential to create 200,000 R&D jobs by Global 500 Total number of MNC R&D centres in India
companies in the next 5 years. During 2013-18, R&D headcount is
expected to increase at a CAGR of 15.8 per cent
1,165
1,031
871
Number of R&D centers for global 500 companies, 2014 699 780
517
17 297
191
48 55
4 72 80
83
52 Before 2001-02 2003-04 2005-06 2007-08 2009-11 2011-13 2014-16
46 45
28 20 '00
Top 50 Top 100 100- 200 200-300 300-400 400-500 Source: FICCI, Department of Science & Technology, Zinnov, TechSci Research
Present Not present Note: Figures mentioned are as per latest data available

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 & 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

KEY GOVERNMENT INITIATIVES…(1/2)
The Government of India has taken various steps to generate interest and promote investments in the Science &
Technology sector
Key focal points include:

• Creation of major national facilities under partnerships
12th Five-Year Plan • Programmes for centre-state technology partnership
(2012–17) • 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

National knowledge some 5,000 nodes in India
network
• It will be the sole vehicle for international connectivity in future
• 2010–2020 has been declared the Decade of Innovation to stimulate innovations &
National Innovation
produce solutions for societal needs such as healthcare, energy, infrastructure, water &
Council
transportation
• Innovation universities would be set up as public private partnerships to develop new

Improving Academia 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: Department of Science and Technology, Government of India, & Other Government websites
KEY GOVERNMENT INITIATIVES…(2/2)
The Government of India has taken various steps to generate interest and promote investments in science & technology
sector
Key focal points include:

• Aims at promoting scientific thinking.
• Communicating science & technology to masses using digital media, folk media and
National Council for
digital media.
Science & Technology
Communication • Focus on training in science and technology communication, incentive programmes,
(NCSTC) 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 Children’s 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
Big Data Initiative in industries, government and academia.
(2016)
• 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

INDIA AS CENTRE OF EXCELLENCE
In 2015, Punjab University has been acknowledged as India’s
leading science institution, based on its research papers published Top Indian Institutions by citation Citation
during 2010-14. It had the highest citation impact of 1.4 impact(1) Impact
Punjab University 1.4
As of November 2016, Ministry of Earth Sciences, Government of
India and Japan Agency for Marine-Earth Science and Technology Tata Institute of Fundamental
1.39
(JAMSTEC) have signed a Memorandum of Understanding (MoU) Research
for advancement of academic research in the field of Earth Sciences
Indian Association for the Cultivation of
1.28
Science
As on November 2016, India has become an associate member at
European Organization for Nuclear Research (CERN) CSIR Chemistry and Physics 1.18
Indian Institute of Technology Bombay 1.15
Indian Institute of Science Bangalore 1.11
Indian Institute of Technology

1.07
Guwahati
CSIR Industry and Standards 1.07

1.06
Kharagpur
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

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 – 2014-154

Company R&D Spend (USD million) R&D Spend (% Revenue)
Tata Motors 365.63 0.84%
Prithvi Information(1) 246.3 60.5%
Polaris Software(3) 0.62 0.22%
BHEL 155.67 3.3%
Mahindra & Mahindra 235.43 3.38%
Lupin 183.20 8.87%
Infosys(3) 63.40 0.8%
Reliance Industries 202.39 0.31%
Core Education &
96.2 53.4%
Technologies Limited(2)
Bharat Electronics 83.86 8.2%
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
4: As per latest available information

ATTRACTING INVESTMENTS IN THE R&D SPACE
• In 2016, Tata Group has joined hands long with Indian Institute of Technology, Harvard & Yale
Universities, to start developing breakthrough technologies, with an investment of US$ 25 million.
• In 2016, the company invested USD15 million in building a development, quality & global research Thane,
Maharashtra.
• 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 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, 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.
Source: Company Websites, News articles

Note: Figures converted to USD using INR-USD exchange rate for 2013-14
OPPORTUNITIES
R&D OPPORTUNITIES IN VARIOUS SUB SECTORS IN INDIA
• Establishment of Software Technology Parks of India (STPI’S)
ICT and wireless • National Policy of IT aims at bringing the power of ICT within the reach of all its citizens to enable India
technology to emerge as a global hub for IT by 2020
• Cloud computing presents endless opportunities in wireless technologies
• 3rd largest pharmaceuticals market by 2020

Pharmaceuticals and • USD55 billion in revenues by 2020 and USD 26.1 billion in genetics by 2016
Health Care • A new Health Policy 2015-2025 to focus on healthcare for all holistically
• Automation and environmental sustainability are the key focus areas for manufacturing companies
Manufacturing • The National Manufacturing Policy targets at creating 100 million additional jobs in the sector by 2025
technologies • 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.
Material energy • 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

Bio-energy • 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
• The water demand of industry will account for 8.5 per cent and 10.1 per cent of the total fresh water
Water technologies 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

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 Investment in ICT in India
billion during 2012-16F 95.9
USD’ billion 86.2
78.9
71.5
Telecommunication sector, which accounts for 67 per cent of the 66.4
Indian ICT market, is expected to drive growth
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 &
emergence of cloud technologies
2012 2013 2014 2015E 2016F
With usage of wireless technologies expected to grow in future,
low power devices with higher duty cycles need to be explored
According to Nasscom, India’s information technology
Network infrastructure also needs to be improved as elimination of design and engineering services market is expected to
congestion in existing network infrastructure is the need of the
touch $35 billion by 2020
hour
According to NASSCOM, the total ICT spending allocated for As per report of a UN (United Nations) agency,
Smart Cities in India during the Union Budget 2014-15 was released on August 15, 2016, India was the top
around USD30-40 billion. However, as per Union Budget 2015-16, exporter of information & communication technology,
expenditure worth USD1.07 billion was incurred. globally.
As of October 2016, GSAT-18, India’s latest communication As of February 2017, ISRO is planning to initiate
satellite was launched from spaceport of Kourou in French production of Telemetry & Telecommand processor
Guiana. (TTCP), whose indigenous development is expected to
replace the expensive imported equipment.
On February 15, 2017, ISRO launched 104 satellites, using its Source: News Releases, FICCI
workhorse rocket PSLV-C37, from Satish Dhawan Space Centre Notes: ICT denotes Information & Communication Technology,
in Sriharikota. E denotes Estimated, F denoted Forecasted

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
Key drivers that will fuel the sector’s growth include rising USD’ billion
55
income levels, increase in chronic diseases, better medical
infrastructure, wider health insurance reach & supportive
healthcare policies
Creation of new drug testing laboratories and further 30
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 & Assam. Another AIIMS to be set up in 2015 2020F
Bihar
Setting up of projects in special areas such as the North- R&D spending by top six pharma giant FY16 (upto
East, Jammu & Kashmir, Himachal Pradesh & Uttarakhand September 2015)
Companies need to develop drugs for diseases local to (USD million)
India and other tropical countries 351.67
Overall R&D expense by Indian companies has been 244
198.59
around 5 per cent of sales & is expected to increase in 164
coming years 85 58
28
Sun Dr Reddy⁽²⁾ Lupin⁽³⁾ Cipla Cadila Wockhart⁽¹⁾ Aurbindo⁽¹⁾

Pharma⁽³⁾
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

THE WAY FORWARD … (1/2)
• The aim is to accelerate innovative Indian technologies into the global market
India Innovation • This programme is a joint initiative of FICCI, Dept. of Science and Technology, Govt. of India, and others
Growth Program
• The Government’s 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
Human capital leaders in science and engineering
development • 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
Investment in basic
initiatives with Australia, Canada, Germany, etc.
research
• The government has its focus on investing in research & development of technologies that address the needs
of rural India
• In FY16, India’s 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
Attracting investment
from private sector • Promoting multi-stakeholder participation in the Indian R&D system
• As per recent RBI (Reserve Bank of India) norms, start-ups can now access foreign currency loans of up to
US$3 million in a year, under the external commercial borrowing (ECB) route.
Source: Science, Technology & Innovation Policy
FEBRUARY 2017 2013; Department of Science and Technology
For updated information, please visit www.ibef.org 29
THE WAY FORWARD (CONTD.) … (2/2)
• 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
R&D laboratories
challenges of Science & Technology and its applications
collaboration
• 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
Promoting innovation
entrepreneurship
• Also promoting incentives for commercialisation of innovations with focus on green
manufacturing
Gravitational Laser • The Indian Institute of Science Education & Research (IISER), which served as a part of a
Interferometer global team of scientists, proposed to set up a LIGO (Laser Interferometer Gravitational
Gravitational-Wave Wave Observatory) detector in India. LIGO will help in detection and observation of
Observatory gravitational waves.
Source: Science, Technology & Innovation Policy 2013

SUCCESS STORIES
SUCCESS STORIES: TATA MOTORS LEADING THROUGH INNOVATION
Launched Prima
LX Trucks’ 6 new
2016: Products models in the cargo
anticipated to be segment and 4 new
launched in 2016: Tata models in tippers,
Nexon, Tata Hexa, Tata Launched
world’s along with various
Kite Sedan, Tata others
Megapixel, Tata Indica cheapest
Production car, Tata
Vista Electric of first Introduced
Nano
indigenously new SIGNA
designed range of
Launched LCV commercial
India’s first vehicles
indigenously Feb 2016
designed car
A Combination of Establishment FY16(1)
technology and of engineering USD20.08
imagination, research Billion
Tata Motors has been centre turnover
driving the innovation
tend in the FY15
Indian automobile USD43.75
industry Billion
turnover
1966 1998 2005 2008 2014 2015 2016

Source: Tata Motor’s website
Notes: (1) Excluding Jaguar and Land Rover, LCV - Light Commercial Vehicle;
(1) - Data is for Half Year Ended September 2015

INFOSYS: NURTURING INNOVATION IN IT
Infosys has 3rd highest number of patents applications in Indian IT patent applications ( FY14)
India.
Tata Consultancy ⁽¹⁾
Research activity for different areas is allocated amongst
dedicated labs such as Software Engineering lab, Samsung R&D Institute India ⁽¹⁾
Convergence lab, Security and Privacy lab, Distributed
Computing lab and E-Com lab. Infosys
Samsung India Software Operations

During FY12-16, the company’s revenues increased at a Private Limited
CAGR of 7.30 per cent to USD9.54 billion from USD7.20
billion in FY12. Wipro Limited

During the same period, net profit grew at a CAGR of 3.82 (Collective)
per cent to USD2.06 billion from USD1.77 billion in FY12.
Income and net profit (USD Billion)
Infosys spent USD63.40 million in R&D expenses during
10 2.5
FY16(1)
8 2.01 2
1.7 1.7 1.8
6 1.5 1.5
4 2.05 1
9.54
Source: Office of the Controller General of Patents, 2 0.5
6.9
7.4
8.2
8.7
Designs and Trademarks Annual Report, Company
6
Annual Reports, TechSci Research 0 0

Note: (1) - Data is for FY15; FY11 FY12 FY13 FY14 FY15 FY16*
Sales Net Profit

USEFUL INFORMATION
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

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

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

EXCHANGE RATES
Exchange rates (Fiscal Year) Exchange rates (Calendar Year)
Year INR equivalent of one USD Year INR equivalent of one USD
2004–05 44.81
2005 43.98
2005–06 44.14
2006 45.18
2006–07 45.14
2007–08 40.27 2007 41.34
2008–09 46.14 2008 43.62
2009–10 47.42 2009 48.42

2010–11 45.62
2010 45.72
2011–12 46.88
2011 46.85
2012–13 54.31
2012 53.46
2013–14 60.28
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

Source: Reserve bank of India,
Average for the year
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 IBEF’s 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.

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SCIENCE & TECHNOLOGY

FEBRUARY 2017 For updated information, please visit www.ibef.org 1

FEBRUARY 2017 For updated information, please visit www.ibef.org 2

• Third largest technical manpower in the world

Growing demand Huge talent base

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

FEBRUARY 2017 For updated information, please visit www.ibef.org 5

MARKET OVERVIEW & TRENDS

• Scientific and • New Initiatives such

Industrial R&D Socio Economic

India is among the top-ranking countries in the field of basic research

The Council of Scientific and Industrial Research runs 38 research laboratories

India ranks 12th in terms of the number of patents filed

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

FEBRUARY 2017 For updated information, please visit www.ibef.org 9

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

FEBRUARY 2017 For updated information, please visit www.ibef.org 10

FEBRUARY 2017 For updated information, please visit www.ibef.org 11

PORTER FIVE FORCES ANALYSIS

• Competitive rivalry is low; however, there is indirect competition between

Threat of New Entrants Substitute Products

• The threat of new entrants is • With easy access to talent base

Bargaining Power of Suppliers Bargaining Power of Customers

FEBRUARY 2017 For updated information, please visit www.ibef.org 13

In FY15, most of the leading pharma players spent anywhere between

FEBRUARY 2017 For updated information, please visit www.ibef.org 15

The period between 2010-20E has been declared as the

In 2008, Government launched Innovation in

FY11 FY12 FY13 FY14 FY15

Source: NSTMIS, Department of Science & Technology

FEBRUARY 2017 For updated information, please visit www.ibef.org 16

FEBRUARY 2017 For updated information, please visit www.ibef.org 17

FEBRUARY 2017 For updated information, please visit www.ibef.org 18

Science Technology and

The key elements of the STI policy are:

Source: News articles, Science & Technology Policy 2013

FEBRUARY 2017 For updated information, please visit www.ibef.org 19

Key focal points include:

• A state-of-the-art multi-gigabit (multiples of 10 Gbps) pan-India network is planned to link

• Innovation universities would be set up as public private partnerships to develop new

Key focal points include:

Source: News articles, Government websites, swissnex India

Indian Institute of Technology Bombay 1.15

Indian Institute of Science Bangalore 1.11

Indian Institute of Technology

CSIR Industry and Standards 1.07

Indian Institute of Technology

Indian Institute of Technology Madras 1.03

Source: swissnex India, NSTMIS

FEBRUARY 2017 For updated information, please visit www.ibef.org 22

Top 10 companies spending on R&D in India – 2014-154

FEBRUARY 2017 For updated information, please visit www.ibef.org 23

Source: Company Websites, News articles

• 3rd largest pharmaceuticals market by 2020

• Bio-energy is emerging as a promising alternative to meet rural energy needs in India

Source: Make In India, FICCI

Key drivers that would accelerate growth of the sector include

FEBRUARY 2017 For updated information, please visit www.ibef.org 27

Sun Dr Reddy⁽²⁾ Lupin⁽³⁾ Cipla Cadila Wockhart⁽¹⁾ Aurbindo⁽¹⁾

Source: Make in India, FICCI, Ministry of Chemicals & Fertilizers- Department

R&D - Research and Development

• Through Science, Technology and Innovation policy, the Government promotes