Science and Technology Sectore Report - February 2017

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

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

33FEBRUARY 2017
• Third largest technical manpower in the world
• 162 universities awarding 4,000 doctorates and 35,000 postgraduate degrees
• 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
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
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.
• 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
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
For updated information, please visit www.ibef.org
EXECUTIVE SUMMARY
Source: RBI, India Budget, TechSci Research
Large consumer base
Huge talent pool
Policy framework
Rising investments

ADVANTAGE INDIA

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

MARKET OVERVIEW & TRENDS

77FEBRUARY 2017
2003
EVOLUTION OF SCIENCE & TECHNOLOGY POLICY FRAMEWORK IN INDIA
Source: Department of Science & Technology, Ministry of HRD, Government of India,
Union Budget 2016-17
• New Initiatives such as
SWAYAM (Study Webs of Active-
Learning for Young Aspiring
Minds), etc. have been taken to
support young talent and attract
innovation
• "Innovation of Science Pursuit for
Inspire Research (INSPIRE)“
initiative was launched to
communicate with the youth
population and attract talent to
the scientific field
• The total plan outlay allocated
under the Union Budget 2015-16
for the Department of Science
and Technology is around
USD557.1 million
2013
2014
2015
2016
• Science &
Technology Policy
to bring science and
technology together
and emphasize the
need for investment
into research and
development to
address national
problems.
• Science,
Technology &
Innovation Policy
aims to develop
synergies
between science,
technology and
innovation. Ethnic
diversity and
varying
demographics
attracted
investment from
various players.
• Scientific and
Technological
(S&T) Activities
Survey 2015-16
aims to collect data
on resources
devoted to R&D in
science and
technology. The
information is
collected from
about 5000 R&D
organizations
present across the
country.
• New Initiatives such
as the Science,
Technology,
Innovation &
Creation of
Knowledge (STICK)
framework has been
taken by the Indian
government to
support innovation.
• The total plan outlay
allocated under
union budget 2016-
17 for the
Department of
Science &
Technology is
around USD597.46
million .

INDIAN SCIENCE & TECHNOLOGY SYSTEM
Source: Changing Indian STI Landscape Presentation, Department of Science & Technology
Note: STI refers to Science Technology & Innovation
Indian STI
system
R&D bodies
Government
funding &
development
agencies
Academic sector
Socio Economic
Ministries
Industrial R&D
Systems
R&D by
multinational
companies
R&D in NGO
groups

INDIA HAS A STRONG NETWORK OF SCIENCE & TECHNOLOGY INSTITUTIONS AND TRAINED MANPOWER
Source: Department of Science & Technology, NSTIMS, TechSci Research
As per the latest available information
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.

1010FEBRUARY 2017
Source: Department of Science & Technology, NSTIMS, Business Standard, TechSci Research
Note: (1) Estimated Data; (2) - Data is as per latest data available
STRENGTHNING INDIA’S POSITION IN RESEARCH THROUGH INVESTMENT(2)
During the 11th Five-Year Plan, India’s R&D/GDP ratio
increased to 0.88 per cent
R&D investments have grown in India to around USD66.5 billion
by 2015 and are estimated to reach USD71.5 billion in 2016
As of December 2016, Government of Arunachal Pradesh
planned to allocate funds worth USD22.92-30.55 million for the
development of science & technology sector in the state.
A series of new investments were recently announced by Cisco
India to enhance cyber security infrastructure in India. It will
enable to build transparent & secure digital infrastructure
environment for accelarating India’s digital transformation. For
strategic cyber security cooperation,
Cisco India has signed an MoU with Indian Computer
Emergency Response Team (CERT-In) to establish a threat
intelligence sharing program.
USD’ billion
National R&D expenditure and its
percentage with GDP
5.4
6.8
7.6
9.8
10.3
11.2
18.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
FY05 FY06 FY07 FY08 FY09 FY10 FY14
0.76%
0.78%
0.80%
0.82%
0.84%
0.86%
0.88%
0.90%
0.92%
National R&D Expenditure (LHS)
R&D Expenditure (%of GDP) (RHS)

1111FEBRUARY 2017
NUMBER OF PATENT APPLICATIONS GOING UP
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
Patent filings have gone up from 28,940 during 2006–07 to
42,774 during 2014–15, representing an increase of 5.01
per cent.
Out of the total number of 42,763 patent applications, the
number of applications filed by Indian applicants was
12,071 in 2014-2015, indicating around 10.3 per cent Y-o-Y
growth.
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
received
Top 5 Indian applicants for patents from institutes Top 5 Indian applicants for patents from R&D organisations
Patenting trends in India
Name of R&D organisations
Applications
filed (2014-15)
Council of Scientific & Industrial Research 315
Defence Research & Development Organisation 98
Indian Council of Agricultural Research 68
G.H.R Labs and Research Center 31
Department of Biotechnology, Government of
India
23
Name of Institute/University
Applications
filed (2014-15)
Indian Institute of Technology 337
Janardan Rai Nagar Rajasthan Vidyapeeth
(Deemed) University
53
Indian Institute of Science 46
Amity University 43
Sandip Foundation’s Sandip Institute of Technology
and Research Center
33
28940
35218
36812
34287
39400
43197
43674
42951
42763
0
5000
10000
15000
20000
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
0
10000
20000
30000
40000
50000
Patents Filed Patents Granted

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
each other
• Many foreign companies tend to set up their in-house research centres
that may operate in competition with contract R&D centres
Threat of New Entrants Substitute Products
Bargaining Power of Suppliers Bargaining Power of Customers
• The threat of new entrants is
low because of the capital
intensive nature of the business
• Contract or academic research
centres do not have any direct
influence on the market, and
have little bargaining power for
the commercialisation of
technologies developed
• There is no direct influence of
consumers on scientific
research; however,
technologies are developed
keeping consumer needs in
mind
• With easy access to talent base
and low operational costs,
companies may look to set up
in-house scientific research
centres
Competitive
Rivalry
(Low)
Threat of New
Entrants
(Low)
Substitute
Products
(Medium)
Bargaining
Power of
Customers
(Low)
Bargaining
Power of
Suppliers
(Medium)

GROWTH DRIVERS

1515FEBRUARY 2017
STRONG POLICY FRAMEWORK TO PROMOTE INDIA AS A R&D HUB
Resulting in
Investments from
Multinational
Companies (MNCs) to
cater to the needs of
the local market and
their global client base,
R&D expenditure by 25
Indian pharma
companies has
increased by 28.8 per
cent in 2014-15
Strengthening capacity
for basic research
Strengthening
institutional capacity
for research
Strengthening human
capacity for research
Policy
support
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
Source: NSTMIS, Department of Science & Technology
Note: Pursuit for Inspired Research (INSPIRE)
In recent years, the Indian Government has implemented
several fellowship schemes to nurture human capacity for
advanced research in the country
The period between 2010-20E has been declared as the
“Decade of Innovation” by the nation & the need for the
establishment of National Innovation Council has been
emphasised. To fuel the growth innovation in science &
technology STI (Science, Technology & Innovation) Policy
2013 was formed.
In 2008, Government launched Innovation in
Science Pursuit for Inspired Research (INSPIRE)
scheme, through which the Government awarded
2,150 research fellowships for doctoral research &
270 faculty awards for post doctoral researchers
As of December 2016, India & Israel announced plans to
support R&D programmes in science & technology sector,
with an investment of USD1 million, by both nations
Number of researchers in India
1,92,819
2,00,000
2009 2015
INSPIRE fellowship growth profile
780 871
1190
1000
679
FY11 FY12 FY13 FY14 FY15

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

LOCAL DEMAND ATTRACTING INVESTMENTS FROM MNCs … (2/2)
Source: FICCI, Department of Science & Technology, Zinnov, TechSci Research
Note: Figures mentioned are as per latest data available
Lower development cost, rising technology intensity and growing
local demand for top of the line unique technology products have
attracted R&D investments from foreign companies in India,
making it one of the largest outsourcing provider in R&D segment
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
present have more than 10 per cent of the global headcount in
India
About 28 per cent companies with headquarters in Japan, the EU
& APAC have a R&D centres in India
There is a potential to create 200,000 R&D jobs by Global 500
companies in the next 5 years. During 2013-18, R&D headcount is
expected to increase at a CAGR of 15.8 per cent
Total number of MNC R&D centres in India
46
83
52 45
28 20
4
17
48 55
72 80
Top 50 Top 100 100- 200 200-300 300-400 400-500
Present Not present
Number of R&D centers for global 500 companies, 2014
176
366
313
229
489
595
2013 2018
R&D headcount Remaining addressable population
R&D headcount by G500 (‘000)
191
297
517
699 780
871
1,031
1,165
Before
'00
2001-02 2003-04 2005-06 2007-08 2009-11 2011-13 2014-16

1919FEBRUARY 2017
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
FAVOURABLE POLICY MEASURES AIDING GROWTH
Science Technology and
Innovation Policy 2013
Source: News articles, Science & Technology Policy 2013

2020FEBRUARY 2017
The Government of India has taken various steps to generate interest and promote investments in the Science &
Technology sector
KEY GOVERNMENT INITIATIVES…(1/2)
12th Five-Year Plan
(2012–17)
Key focal points include:
• Creation of major national facilities under partnerships
• Programmes for centre-state technology partnership
• 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.
Source: Department of Science and Technology, Government of India, & Other Government websites
National knowledge
network
• A state-of-the-art multi-gigabit (multiples of 10 Gbps) pan-India network is planned to link
some 5,000 nodes in India
• It will be the sole vehicle for international connectivity in future
National Innovation
Council
• 2010–2020 has been declared the Decade of Innovation to stimulate innovations &
produce solutions for societal needs such as healthcare, energy, infrastructure, water &
transportation
Improving Academia
• Innovation universities would be set up as public private partnerships to develop new
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

2121FEBRUARY 2017
The Government of India has taken various steps to generate interest and promote investments in science & technology
sector
KEY GOVERNMENT INITIATIVES…(2/2)
National Council for
Science & Technology
Communication
(NCSTC)
Key focal points include:
• Aims at promoting scientific thinking.
• Communicating science & technology to masses using digital media, folk media and
digital media.
• Focus on training in science and technology communication, incentive programmes,
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.
Source: News articles, Government websites, swissnex India
Big Data Initiative
(2016)
• 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
in industries, government and academia.
• 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.

INDIA AS CENTRE OF EXCELLENCE
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
In 2015, Punjab University has been acknowledged as India’s
leading science institution, based on its research papers published
during 2010-14. It had the highest citation impact of 1.4
As of November 2016, Ministry of Earth Sciences, Government of
India and Japan Agency for Marine-Earth Science and Technology
(JAMSTEC) have signed a Memorandum of Understanding (MoU)
for advancement of academic research in the field of Earth Sciences
As on November 2016, India has become an associate member at
European Organization for Nuclear Research (CERN)
Top Indian Institutions by citation
impact(1)
Citation
Impact
Punjab University 1.4
Tata Institute of Fundamental
Research
1.39
Indian Association for the Cultivation of
Science
1.28
CSIR Chemistry and Physics 1.18
Indian Institute of Technology Bombay 1.15
Indian Institute of Science Bangalore 1.11
Indian Institute of Technology
Guwahati
1.07
CSIR Industry and Standards 1.07
Kharagpur
1.06
Indian Institute of Technology Madras 1.03

2323FEBRUARY 2017
ATTRACTING INVESTMENTS FROM PRIVATE SECTOR
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
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
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 &
Technologies Limited(2) 96.2 53.4%
Bharat Electronics 83.86 8.2%
Top 10 companies spending on R&D in India – 2014-154

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

2626FEBRUARY 2017
R&D OPPORTUNITIES IN VARIOUS SUB SECTORS IN INDIA
ICT and wireless
technology
• Establishment of Software Technology Parks of India (STPI’S)
• National Policy of IT aims at bringing the power of ICT within the reach of all its citizens to enable India
to emerge as a global hub for IT by 2020
• Cloud computing presents endless opportunities in wireless technologies
Pharmaceuticals and
Health Care
• 3rd largest pharmaceuticals market by 2020
• USD55 billion in revenues by 2020 and USD 26.1 billion in genetics by 2016
• A new Health Policy 2015-2025 to focus on healthcare for all holistically
Water technologies
• The water demand of industry will account for 8.5 per cent and 10.1 per cent of the total fresh water
abstraction in 2025 and 2050 respectively
• R&D efforts should concentrate on developing technologies for treatment, recycling, recovery, reuse
and efficient use of water
Manufacturing
technologies
• Automation and environmental sustainability are the key focus areas for manufacturing companies
• The National Manufacturing Policy targets at creating 100 million additional jobs in the sector by 2025
• 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
• Bio-energy is emerging as a promising alternative to meet rural energy needs in India
• 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
Source: Make In India, FICCI

ICT EVOLVING IN INDIA AT AN UNPRECEDENTED RATE
Source: News Releases, FICCI
Notes: ICT denotes Information & Communication Technology,
E denotes Estimated, F denoted Forecasted
According to Nasscom, India’s information technology
design and engineering services market is expected to
touch $35 billion by 2020
As per report of a UN (United Nations) agency,
released on August 15, 2016, India was the top
exporter of information & communication technology,
globally.
As of February 2017, ISRO is planning to initiate
production of Telemetry & Telecommand processor
(TTCP), whose indigenous development is expected to
replace the expensive imported equipment.
USD’ billion
Investment in ICT in India
66.4
71.5
78.9
86.2
95.9
2012 2013 2014 2015E 2016F
Information & Communication Technology (ICT) spending in India
is expected to increase at a CAGR of 9.63 per cent to USD95.9
billion during 2012-16F
Telecommunication sector, which accounts for 67 per cent of the
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
With usage of wireless technologies expected to grow in future,
low power devices with higher duty cycles need to be explored
Network infrastructure also needs to be improved as elimination of
congestion in existing network infrastructure is the need of the
hour
According to NASSCOM, the total ICT spending allocated for
Smart Cities in India during the Union Budget 2014-15 was
around USD30-40 billion. However, as per Union Budget 2015-16,
expenditure worth USD1.07 billion was incurred.
As of October 2016, GSAT-18, India’s latest communication
satellite was launched from spaceport of Kourou in French
Guiana.
On February 15, 2017, ISRO launched 104 satellites, using its
workhorse rocket PSLV-C37, from Satish Dhawan Space Centre
in Sriharikota.

RISING R&D ACTIVITIES IN THE INDIAN PHARMACEUTICAL SECTOR
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
Indian pharmaceutical market is expected to expand at a
CAGR of 12.89 per cent during 2015-2020
Key drivers that will fuel the sector’s growth include rising
income levels, increase in chronic diseases, better medical
infrastructure, wider health insurance reach & supportive
healthcare policies
Creation of new drug testing laboratories and further
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
Bihar
Setting up of projects in special areas such as the North-
East, Jammu & Kashmir, Himachal Pradesh & Uttarakhand
Companies need to develop drugs for diseases local to
India and other tropical countries
Overall R&D expense by Indian companies has been
around 5 per cent of sales & is expected to increase in
coming years
Indian pharmaceutical market
USD’ billion
30
55
2015 2020F
R&D spending by top six pharma giant FY16 (upto
September 2015)
(USD million)
351.67
198.59
244
164
28
85 58
Sun
Pharma⁽³⁾
Dr Reddy⁽²⁾ Lupin⁽³⁾ Cipla Cadila Wockhart⁽¹⁾Aurbindo⁽¹⁾

THE WAY FORWARD … (1/2)
Source: Science, Technology & Innovation Policy
2013; Department of Science and Technology
• The aim is to accelerate innovative Indian technologies into the global market
• This programme is a joint initiative of FICCI, Dept. of Science and Technology, Govt. of India, and others
• 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
leaders in science and engineering
• The policy framework is being devised to enable school science education reforms, by improving teaching
methods and science curricula
• Through Science, Technology & Innovation Policy, the Government is promoting the establishment of large
R&D facilities in PPP mode with provisions for benefits sharing
• 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.
India Innovation
Growth Program
Human capital
development
Investment in basic
research
Attracting investment
from private sector
• 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
initiatives with Australia, Canada, Germany, etc.
• 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.

THE WAY FORWARD (CONTD.) … (2/2)
Source: Science, Technology & Innovation Policy 2013
R&D laboratories
collaboration
Promoting innovation
• Through Science, Technology and Innovation policy, the Government promotes
mechanisms for nurturing technology business incubators and science led
entrepreneurship
• Also promoting incentives for commercialisation of innovations with focus on green
manufacturing
• 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
challenges of Science & Technology and its applications
• In FY16, India and UK collaborated as R&D partners in Solar Alliance and Nano Material
Research.
Gravitational Laser
Interferometer
Gravitational-Wave
Observatory
• The Indian Institute of Science Education & Research (IISER), which served as a part of a
global team of scientists, proposed to set up a LIGO (Laser Interferometer Gravitational
Wave Observatory) detector in India. LIGO will help in detection and observation of
gravitational waves.

SUCCESS STORIES

3232FEBRUARY 2017
1966 1998 2005 2008 2014 2015 2016
SUCCESS STORIES: TATA MOTORS LEADING THROUGH INNOVATION
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
A Combination of
technology and
imagination,
Tata Motors has been
driving the innovation
tend in the
Indian automobile
industry
Production
of first
indigenously
designed
LCV
Establishment
of engineering
research
centre
Launched
India’s first
indigenously
designed car
Launched
world’s
cheapest
car, Tata
Nano
Launched Prima
LX Trucks’ 6 new
models in the cargo
segment and 4 new
models in tippers,
along with various
others
FY15
USD43.75
Billion
turnover
Introduced
new SIGNA
range of
commercial
vehicles
Feb 2016
FY16(1)
USD20.08
Billion
turnover
2016: Products
anticipated to be
launched in 2016: Tata
Nexon, Tata Hexa, Tata
Kite Sedan, Tata
Megapixel, Tata Indica
Vista Electric

INFOSYS: NURTURING INNOVATION IN IT
Source: Office of the Controller General of Patents,
Designs and Trademarks Annual Report, Company
Annual Reports, TechSci Research
Note: (1) - Data is for FY15;
Indian IT patent applications ( FY14)Infosys has 3rd highest number of patents applications in
India.
Research activity for different areas is allocated amongst
dedicated labs such as Software Engineering lab,
Convergence lab, Security and Privacy lab, Distributed
Computing lab and E-Com lab.
During FY12-16, the company’s revenues increased at a
CAGR of 7.30 per cent to USD9.54 billion from USD7.20
billion in FY12.
During the same period, net profit grew at a CAGR of 3.82
per cent to USD2.06 billion from USD1.77 billion in FY12.
Infosys spent USD63.40 million in R&D expenses during
FY16(1)
Income and net profit (USD Billion)
6
6.9
7.4
8.2
8.7
9.54
1.5
1.7 1.7 1.8
2.01
2.05
0
0.5
1
1.5
2
2.5
0
2
4
6
8
10
FY11 FY12 FY13 FY14 FY15 FY16*
Sales Net Profit
(Collective)
Wipro Limited
Samsung India Software Operations
Private Limited
Infosys
Samsung R&D Institute India ⁽¹⁾
Tata Consultancy ⁽¹⁾

USEFUL INFORMATION

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
AUTONOMOUS & PROFESSIONAL BODIES … (1/2)
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

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
AUTONOMOUS & PROFESSIONAL BODIES … (2/2)

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
GLOSSARY

3838FEBRUARY 2017
Exchange rates (Fiscal Year)
EXCHANGE RATES
Exchange rates (Calendar Year)
Year INR equivalent of one USD
2004–05 44.81
2005–06 44.14
2006–07 45.14
2007–08 40.27
2008–09 46.14
2009–10 47.42
2010–11 45.62
2011–12 46.88
2012–13 54.31
2013–14 60.28
2014-15 61.06
2015-16 65.46
2016-2017E 66.95
Source: Reserve bank of India,
Average for the year
Year INR equivalent of one USD
2005 43.98
2006 45.18
2007 41.34
2008 43.62
2009 48.42
2010 45.72
2011 46.85
2012 53.46
2013 58.44
2014 61.03
2015 64.15
2016 (Expected) 67.22

3939FEBRUARY 2017
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
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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.
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DISCLAIMER

Science and Technology Sectore Report - February 2017

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