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IBEF Presentation SCIENCE AND TECHNOLOGY March 2021 For updated information, please visit www.ibef.org Table of Contents Executive Summary 3 Advantage India 4 Market Overview 6 Growth Drivers 17 Opportunities 28 New Developments 33 Key Industry Contacts 34 Appendix 36 2 Executive summary 1. Huge talent pool 5. Global Innovation Index • India has the third-largest scientific • At rank 48, India stands among the top 50 and technical manpower in the world. countries in the Global Innovation Index (GII) • As of December 31, 2020, there were 2020 with a score of 35.6. In 2019, it was placed 967 universities in the country. at #52 position with a GII score of 36.58. • In November 2020, 1,494 Indians 5 • India ranks 45th on the innovation output and were listed among the top 2% 57th on the innovation input sub-indices scientists in world. 1 • India ranks 8th in the world in terms of number of students graduating in science and engineering stream. 4. Growing information • India stood at third spot in the number technology sector of science and engineering publications in the world. • The information technology sector is • Between January 2019 and 2 4 expected to increase at a CAGR of September 2020, there were ~2,359 2.3% YoY in FY21. R&D projects, 989 fellowships, 1,371 • In FY21, the sector is likely to add publications, 14,163 ongoing projects ~1.38 lakh new employees, taking and 452 innovations. 3 the total count to 4.47 million. 2. Policy framework • Policies aimed at projecting India as a Science and Technology powerhouse and 3. Rising investment promoting both public and private sector • With more and more multinational companies setting up their R&D centres involvement in the R&D practice. in India, the sector has seen an uptrend in investment in recent years. • In December 2020, the Minister for • Under the Union Budget 2021-22, the government announced allocation of Petroleum & Natural Gas and Steel, Mr. Rs. 14,793.66 crore (US$ 2.02 billion) to the Ministry of Science and Dharmendra Pradhan, appealed to the Technology. scientific community to ‘Innovate for India (I4I)’ and create competitive advantages to make India ‘Aatmanirbhar’. Note: R&D – Research and Development Source: RBI, India Budget 3 Advantage India 4 Advantage India 1. Robust Demand 4. Attractive Opportunities ► Rising income and evolving lifestyles ► India’s medical technology (MedTech) have led to higher demand for sector is forecast to reach US$ 7.8 aspirational products. billion in 2020 and US$ 9.6 billion in ► India’s gross expenditure on R&D 2022. (GERD) has been consistently ► India is the top exporter of IT products increasing over the years. and has the third-largest pharma sector ► eAs per th Economic Survey 2021, and a fast-growing contract research India’s GERD as a percentage of segment. GDP stood at 0.65%. 1 4 ► For designing and testing the product, ► Indian players are set to benefit from Government is setting up high-tech expiration of patents. R&D facility by bringing together scientific research and commercial ► Expanding middle-class and ADVANTAGE activities under one roof. increasing affordability are demand INDIA drivers for technologically advanced 3. Policy Support products. 2 3 ► The Ministry of Science & Technology has started various schemes such as 2. Rising private activity Biomedical Research Career Programme (BRCP) and Ramanujan ► Establishment of CoEs in various Fellowship to provide Indian areas. NMITLI initiative on PPP basis. researchers living in foreign countries ► Increased investment by private with attractive avenues and players setting up of R&D centres. opportunities to work in Indian institutes and universities. ► Indian Institutes of Information Technology Laws (Amendment) Bill, 2020, was introduced to provide knowledge in the IT field. Notes: CoE - Center of Excellence, PPP - Public Private Partnership, TRIPS - Trade Related Aspects of Intellectual Property Rights, NMITLI - New Millennium Indian Technology Leadership Initiative, NIC - National Innovation Council; Figures mentioned are as per latest data available Source: IPI India Annual Report, PwC report 5 Market Overview MARKET OVERVIEW 6 Evolution of science and technology policy framework in India 2013 2014 2015 2016 2017 2020 . Science, . New Initiatives . Scientific and . New Initiatives . Achievement: . Science, Technology and such as SWAYAM Technological such as the Indian Space Technology and Innovation Policy (Study Webs of (S&T) Activities Science, Research Innovation Policy aims to develop Active-Learning for Survey 2015-16 Technology, Organisation 2020*: The new synergies between Young Aspiring aims to collect Innovation and (ISRO) made policy revolves science, Minds), etc. have data on resources Creation of history after around the core technology and been taken to devoted to R&D in Knowledge placing 104 principles of being innovation. Ethnic support young talent science and (STICK) satellite into space decentralised, diversity and and attract technology. The framework has in a single mission evidence varying innovation information is been taken by the through its Polar informed, bottom- demographics . "Innovation of collected from Indian Satellite Launch up, experts-driven attracted Science Pursuit for about 5000 R&D Government to Vehicle (PSLV) and inclusive investment from Inspire Research organisations support innovation approach. various players (INSPIRE)“ initiative present across the was launched to country communicate with the youth population and attract talent to the scientific field Source: Department of Science and Technology, Ministry of HRD, Government of India, Union Budget 2015-16, *Draft Stage 7 Indian science and technology system 1. Government funding and 7. R&D bodies development agencies 1 7 6 6. R&D in 2. Academic NGO groups sector 2 5 3 5. R&D by 3. Socio-economic 4 Multinational Ministries companies 4. Industrial R&D systems Note: STI refers to Science Technology and Innovation Source: Changing Indian STI Landscape Presentation, Department of Science and Technology 8 India among the world’s leading R&D investors . India’s gross expenditure in R&D was forecast to reach US$ 96.50 Expected expenditure of the world’s leading R&D investors billion by the end of 2020. (US$ billion) . India moved up to fifth rank in Global R&D Funding Forecast 2020. 700 . India ranks third among the most innovative lower-middle-income 621.51 598.74 economies in the world. 600 . India ranks 45th on the innovation output and and 57th on the innovation input sub-indices. 500 580.18 574.41 . R&D investment has helped Indian companies to overcome tight competition with affordable products internationally. 400 . Indian Robot Mitra, designed in Bengaluru and made in China, which 300 can recognise people by their nationalities and guide customers in a bank, has attracted the attention of Chinese manufacturers at an 182.36 information technology (IT) event held at Dalian, China. 200 127.25 . At a webinar organized to celebrate 50 years of the Department of 93.48 91.47 100 Science and Technology (DST), on December 7, 2020, the Vice 181.10 Chairman of NITI Aayog, Dr. Rajiv Kumar stated that the Indian 85.92 87.11 121.65 economy will be among the top economies worldwide in the next few 0 years, using science, technology and innovation in all sectors and US India China bouncing back from the aftermath of COVID-19. Japan Germany 2020E 2021F South Korea Notes: R&D - Research and Development, F - Forecast, E - Estimated * in Purchasing Power Parity terms Source: Nature Magazine, Battelle, R&D Magazine 9 Manpower and investments India has a strong network of science and technology Strengthening India’s position in research through investment institutions and trained manpower . India is among the top-ranking countries in the field of basic . India ranks third in global research publication output. research. &DIndia’s R expenditure is expected to double with government . It has the third-largest scientific and technical manpower in the and private sector funding. world. The Council of Scientific and Industrial Research runs 44 research . A series of new investments were recently announced by Cisco laboratories. India to enhance cyber security infrastructure in India. It will enable . India ranks 7th among highly productive countries in science and to build transparent and secure digital infrastructure environment technology research. for accelerating India’s digital transformation. Britain and India’s research partnership will reach GBP 400 millon . Cisco India has signed a memorandum of understanding (MoU) (US$ 544 billion) by 2021, which include 175 different UK and with Indian Computer Emergency Response Team (CERT-In) to Indian research institutions and more than 100 industry partners. establish a threat intelligence sharing programme. TechnoPro, a Japanese tech firm, plans to hire 10,000 engineers and researchers in India by 2022-23. Under the National Initiative for Developing and Harnessing . HCL Technologies plans to hire 10,000 freshers in FY20. Innovations (NIDHI) programme, Indian Government plans to invest US$ 29.75 million for setting up 100 incubators across the . Similarly, in February 2020, Capgemini announced plans to hire 30,000 employees in the country by 2021. country in the next 4 years to support start-ups. India’s largest IT giants including Tata Consultancy Services . In the last three years (2017-20), ~Rs. 310 crore (US$ 42.23 (TCS), Infosys, Wipro and HCL Technologies added >17,000 million) have been invested to support the use of biotechnology in people including freshers and lateral hires in the second quarter of agricultural applications, including in organic farming through FY21 amid the COVID-19 pandemic. Biotech-KISAN programme. Notes: R&D - Research and Development Source: R&D Magazine, JLL 10 Strong growth in R&D investments in India over the years . By 2022, R&D expenditure is targeted to reach at least 2% of the R&D spending in India (US$ billion) GDP by 2022. To facilitate protection and commercialising of IPRs, these schemes 98 will be providing access to high-quality intellectual property services and resources.
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