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In this episode of the State of the Economy podcast, businessline’s Haripriya Sureban is joined by KS Viswanathan, Vice President, Industry Initiatives, Nasscom and Vijay Guntur, President, Engineering and R&D Services, HCL Technologies. They discuss about the growth and prospects of India’s engineering research and development (ER&D) industry.
The episode starts with an overview of India’s Engineering and R&D Industry, which constitutes about 38% of the global engineering R&D services outsourced to the country. With a revenue of approximately $41 billion and employing around 7,00,000 people, the ER&D industry in India covers 11 different verticals, including automotive, semiconductor, telecom, aerospace, healthcare, and industrial machinery.
The conversation emphasizes the emergence of several hubs in India, such as Bengaluru, Chennai, Pune, Gurgaon, and Noida, which collectively contribute to the substantial revenue of the industry. The experts discuss how India’s engineering design segment has focused more on innovation rather than cost efficiency, and the country’s talent pool has become a driving force for the growth in this sector.
Read: AMD to invest $400 million in India, build its biggest campus in Bengaluru
The guests also highlight the key drivers of growth, including digital engineering, the presence of Global Capability Centers (GCCs), and service providers offering engineering and R&D services. They anticipate the ER&D industry to grow between 10% to 12% year on year for the next few years, with the potential to deliver around $100 billion worth of engineering services export revenue from India by 2030.
The role of talent and skill development is another critical aspect of the discussion. While India has a robust talent market, there is a need to focus on improving the readiness of graduates for specific industry requirements. The industry is working closely with colleges to ensure relevant curriculum and conducting skilling programs to bridge the gap between academic knowledge and industry needs.
Read: Mercedes-Benz R&D India to hire over 1,000 engineers
The government’s role in nurturing the ER&D industry is also explored, with initiatives such as the Karnataka government’s ER&D policy and co-funding projects, setting up validation facilities, and promoting the “Make in India” campaign, leading to more opportunities for the sector.
Overall, the podcast offers valuable insights into India’s thriving ER&D industry, highlighting its potential for further growth and the collaborative efforts of industry, academia, and the government to drive innovation and achieve global recognition. Listen in.
(Host: Haripriya Sureban, Producer: Nabodita Ganguly)
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About the State of the Economy podcast
India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups.
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