India engineering and design to be a $37-45 bn industry by 2020: Nasscom

India is fast emerging as a solution provider to the global challenges in the engineering and design arena, IT industry body Nasscom said

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India is fast emerging as a solution provider to the global challenges in the engineering and design arena. Nasscom, the Indian IT services industry body, said that engineering research and design’s (ER&D) revenue contribution will touch $37-45 billion by 2020.

India today is a home to over 400 global ER&D organisation with most being the second largest centre outside their home location employing over 200,000 engineers.

The scalable talent pool across diverse areas of science, technology and management, along with robust academic and research infrastructure and a progressive policy environment is spurring the industrial R&D activity in the country, said Nasscom at the annual Nasscom Engineering Summit 2014.

“The rapidly increasing market for products and services and the presence of a large pool of engineers and data scientists makes India a destination of choice for the global corporations for off-shoring their ER&D needs.  The new paradigm of globally interdependent economies is fuelling the globalisation of R&D solutions. Major engineering challenges are being addressed by leveraging the capacities available in various geographies and building interdisciplinary collaboration,” said B V R Mohan Reddy, vice-chairman, NASSCOM.

The ER&D services market has played an important role in developing the ER&D capabilities of the country. Escalating cost pressures and demand saturation in developed economies are encouraging firms to increase ER&D spends on efficiency improvements and product localizations.

Vijay Ratnaparkhe, chairman, Nasscom Engineering Council, said, “We at Nasscom have built an ambitious plan and vision to harness the engineering opportunity from India. The Engineering Council has been implementing multiple initiatives that focus on talent development, branding, new technologies like Internet of Things, policy interventions and special interest groups on focused verticals. India is also steadily building the entrepreneurship climate to enable successful growth and innovation."