India’s technology and services sector has seen significant growth in recent years, driven by increasing demand for software development and IT services. India ranks 3rd in the world in the number of PhDs in science and engineering.
There is potential for collaboration between the technology and services sectors in India and Australia, particularly in areas such as software development and IT services. There is also potential for collaboration in e-commerce, particularly as India’s digital economy continues to grow and Australia seeks to expand its international trade and investment.
ADVANTAGES AND OPPORTUNITIES:
RISE IN INVESTMENTS:
India is among the top countries globally in the field of scientific research, positioned as one of the top five nations in the area of space exploration. The nation has regularly undertaken space missions, including missions to the moon and the famed Polar Satellite Launch Vehicle (PSLV). India is expected to take a prime role in launching satellites for the SAARC nations, generating revenue by offering space facilities for use to other countries.
India got a sturdy hold on science and technology, realising that it is an element for economic growth. India ranks third among the most attractive investment destinations for technology transactions globally.
With more multinational companies setting up their R&D centres in India, the sector has seen an uptrend in investment in recent years.
The government has also implemented several fellowship schemes to nurture human capacity for advanced research in the country.
In India, IT spending will grow 7% YoY to reach US$ 101.8 billion in 2022, compared to U$ 81.89 billion in 2021. India’s medical technology sector is forecast to reach US$ 9.6 billion in 2022. R&D expenditure is targeted at about 2% of the country’s GDP.
The engineering R&D and product development market in India is forecast to post a CAGR of 12% to reach US$ 63 billion by 2025, from US$ 31 billion in 2019. As per the Economic Survey 2022, India’s gross domestic expenditure on R&D (GERD) as a percentage of GDP stood at 0.66%, by 2022.
In FY21, there were 5,018 R&D projects, 2,528 fellowships, 3,702 publications, 30,532 ongoing projects and 797 innovations in India, and the science and technology sector added 1,497,501 employees, becoming India’s top employment generator.
INVESTMENTS AND GROWTH
Some of the recent developments in the field of science and technology in India are as follows:
A centre of excellence (CoE) for the Metaverse and Web3 technologies was opened in India by Coforge (a supplier of digital services and solutions). Over 1,000 people will be trained and upskilled by the company in August 2022.
In March 2022, Toyota launched its Mirai hydrogen fuel cell car in India. The Indian Oil Corporation would be supplying hydrogen to power the car.
In August 2022, Samsung announced that it was expanding its industry-academia program PRISM (Preparing and Inspiring Student Minds) across 70 engineering colleges in India. The program will help educate students in the domains of artificial intelligence, machine learning and IoT.
Norwest Venture Partners agreed to invest US$ 32 million in Celebal Technologies, which specialises in AI, big data, and an enterprise cloud among other technologies. In exchange, Norwest Venture Partners will acquire a minority stake in the company in November 2022.
Actis, a global investor in sustainable infrastructure, is planning to invest over US$ 700 million in order to acquire and expand assets for its platform aimed at offering real estate to tenants in the life sciences and allied sectors in India.
Some of the major initiatives taken by the Government of India are as follows;
In November 2022, the Department of Science and Technology (DST) and the Centre for Science and Environment (CSE) decided to work together to build a platform in order to support the development of new electric vehicle (EV) batteries that meet Indian regulations.
The Indian Council of Medical Research (ICMR) has received 31 bids from manufacturers showing interest in developing the vaccine for the monkeypox virus after the medical body put out the Expression of Interest (EOI) for the development of vaccine and diagnostic kits.
The Department of Science & Technology (DST) has revamped the FIST (Fund for Improvement of S & T Infrastructure in Universities and Higher Educational Institutions) programme to align it with the objective of Atmanirbhar Bharat( Make In India) by developing R&D infrastructure for use by start-ups, manufacturing companies, and MSMEs, in addition to R&D operations in academic organisations.
The government announced allocation of Rs. 14,217 crore (US$ 1.86 billion) to the Ministry of Science and Technology under the Union Budget 2022-23. The Department of Atomic Energy was allocated Rs. 22,723.58 crore (US$ 2.97 billion), the Department of Science and Technology (DST) was allocated Rs. 6,000 crore (US$ 785.64 million), and the Ministry of Earth Sciences was allocated Rs. 2,653.51 crore (US$ 347.45 million).
India announced an additional contribution of US$ 5 million to the ASEAN-India science and technology fund to increase cooperation in sectors of public health, renewable energy and smart agriculture in November 2022.
The Women Science programme of DST has started a new initiative to support women PG colleges under the CURIE (Consolidation of University Research for Innovation and Excellence in Women Universities) Program and invited proposals for the same.
The Synergistic Training Program Utilizing the Scientific and Technological Infrastructure (STUTI), a new initiative, was recently unveiled with the goal of enhancing human resource development and capacity building through nationwide open access to science and technology infrastructure.
THE FUTURE AHEAD
India plans to move forward with developing its science and technology sector by collaborating with other countries. India has active bilateral science and technology (S&T) programs of cooperation with more than 45 countries, including dedicated programs for Africa, ASEAN, BRICS, EU and neighbouring countries.
India ranks third among the most innovative lower-middle-income economies in the world. Rising per capita income in India will bring boom in R&D investment in the country with multiple foreign players shifting R&D bases to India. R&D investment and multiple government policies have helped Indian companies overcome tight competition with affordable products internationally. India is aggressively working towards establishing itself as a leader in industrialisation and technological development. Significant developments in the nuclear energy sector are likely as India looks to expand its nuclear capacity. Moreover, nanotechnology is expected to transform India’s pharmaceutical industry. The agriculture sector is also likely to undergo a major revamp with the government investing heavily for a technology-driven green revolution. Through the Science, Technology and Innovation (STI) Policy-2013, the government of India aspires to position India among the world’s top five scientific powers.
There is also potential for collaboration in e-commerce, particularly as India’s digital economy continues to grow and Australia seeks to expand its international trade and investment.
The future of the technology and services sector in Australia is promising, with the ongoing digital transformation of businesses, the increasing adoption of new technologies, and the growth of the digital economy all contributing to a positive outlook for the industry.