Corporate India lags behind in R&D spending
By siliconindia   |   Monday, 27 December 2010, 19:24 IST
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Corporate India lags behind in R&D spending
Bangalore: If you look at the Indian R&D spending in the midst of the entire financial crisis it is noticeable with a tab of 1,171 crore Tata Motors became the largest R&D spender. The whole credit goes to the investments in developing the world's cheapest car. BHEL, a capital goods manufacturer and a public sector undertaking has secured the second place. Based on market reports, it is estimated that the total engineering services outsourcing market in India is about $10 billion, right now, and is expected to grow 4 times over the next decade. If you look at the sector wise growth, pharmaceutical, automobiles and capital goods dominated the country's R&D landscape. This may raise a question where are the biggest Indian firms. It is true that they haven't kept pace with the soaring revenues and global ambitions. If you compare the global biggies with the Indian biggies you may be surprised to see where we stand. For instance, while Microsoft spends its 15 percent of revenue on R&D; TCS spend just 0.3 percent of its revenue. Whereas based on market reports, it is estimated that the total engineering services outsourcing market in India is about $10 billion, right now, and is expected to grow 4 times over the next decade. The Nasscom Booz report and the recent R&D Magazine research, the global R&D spends are estimated at $1.1 trillion in 2010. And this creates a need for corporate India to focus more on R&D.

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