A recent report reveals a surprising trend in the research and development landscape: Indian firms are outpacing their global rivals in R&D growth. This is according to a comprehensive study by the Foundation for Advancing Science and Technology (FAST India) and IIFL Securities, which compared the R&D activities of Indian and global companies across six major sectors.
The report found that Indian firms experienced 1.2 times more growth in R&D from 2016 to 2023 than their global counterparts. This impressive growth has been maintained despite challenges like the COVID-19 pandemic and changes in R&D tax policies.
While global firms still lead in R&D intensity and PhD employee numbers, Indian companies excel in R&D transparency, scoring higher in annual report disclosures. The Indian pharmaceutical sector stands out with high R&D intensity, a strong proportion of PhD employees, and a high number of patents per revenue.
The report also found that Indian software firms outperform in terms of publications and patents per revenue compared to their R&D investment and PhD workforce.
However, challenges remain. India's overall R&D spending is only 0.7% of GDP, with a significant imbalance between government and private sector contributions. To enhance global competitiveness, the report recommends increasing R&D investments, especially from the private sector, and implementing supportive policies like tax incentives and state-level initiatives to foster a conducive R&D environment.
This report comes at a time when India is witnessing a burgeoning startup ecosystem and a growing pool of skilled talent, factors contributing to the rise in R&D activities. Government initiatives like "Make in India" have further spurred domestic innovation.
Overall, the report paints an optimistic picture of India's R&D landscape. By increasing investment and leveraging supportive policies, Indian firms have the potential to become global leaders in research and development, driving technological advancements and contributing significantly to global innovation.
