A unique mix of capitalist and socialist policies has positioned the Indian economy as one of the ten largest economies in terms of gross domestic product (GDP) growth and per capita income. The country’s focus on building infrastructure, political stability, favourable demographic dividend, and a large under-30s population have been attracting foreign direct investment (FDI) for the last five years. This, in turn, is expected to promote a culture of innovation and indigenous R&D.
New analysis from Frost & Sullivan, Innovations in Emerging Economies - India, finds that India is a hotbed of activity in the automation and electronics; information and communications technology; healthcare; chemicals & materials; and the energy and environment domains.
“The Indian Government offers weighted tax reduction of 200 percent of the total expenditure for companies with in-house R&D centres,” noted Technical Insights Research Analyst. “Apart from that, it also provides custom and excise duty exemption and state subsidy to accelerate technological progress.” The Government supports R&D through various established national, state and sectorial innovation councils. These councils encourage frugal inventions that are targeted at the mass market for low-income consumers.
Additionally, the Department of Scientific and Industrial Research (DSIR) has several programmes aimed at developing technology and conducting R&D in diverse industries. One of its notable initiatives includes the Technopreneur Promotion Program, a multi-phase development plan to help innovators commercialize their technology.
India is also establishing itself as a technology leader in the stem cell therapeutics market with its pioneering work in stem cell banking, expansion and differentiation. Collaborations with large pharmaceutical companies or medical devices developers are helping many hospitals deliver more accessible and affordable solutions to patients. As a part of the 12th Five Year Plan (2012-2017), the Government of India proposed the use of Skype, mHealth, audio and visual media, and telemedicine for linking tertiary care centres. It also endorsed a biometric-based healthcare information system.
Importantly, India is looking to fill the gaps in expertise in the fields of smart grids, nanotechnology, and advanced manufacturing by fostering innovation at the institution level. Some significant organizations involved in this exercise include:
The Department of Electronics and Information Technology, which plays an active role in developing technologies such as nanoelectronics, automation and intelligent transportation systems (ITS).
Microsoft, with its I-Spark program aimed at nurturing innovation among students across colleges in India. It has set up more than 25 centres in engineering colleges and incubated multiple start-ups.
The Centre for Materials for Electronics Technology (C-MET), which has laboratories where specialized research is conducted. The core program areas include piezo sensors and actuators, nanomaterials and devices, and integrated electronics packaging.
“Advances in ICT are transforming the business and governance scenario in India with new concepts such as e-governance, e-commerce, and e-banking,” noted the analyst. “Alongside advances in futuristic technologies such as Big Data, cloud computing, scientists are focusing on leveraging the convergence potential of these disruptive technologies to transform communication and computing.”
For more information on this study, please email Ravinder Kaur / Priya George, Corporate Communications, at ravinder.kaur[.]frost.com / priyag[.]frost.com.
Innovations in Emerging Economies - India, a part of the Technical Insights (technicalinsights.frost.com) subscription, aims to identify and analyze the innovations that can shape the Indian economy and influence the global economy across different industries. Further, this research service includes detailed technology analysis and industry trends evaluated following extensive interviews with market participants. Technical Insights is an international technology analysis business that produces a variety of technical news alerts, newsletters, and studies.
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