Focus on sectors including aerospace & defence, auto, auto components and electric vehicles, biotechnology, pharma and medical devices, semiconductors, telecom, ESDM and software products
The engineering R&D (E R&D) sector is one of the fastest growing industries in India said Karnataka’s Deputy Chief Minister Dr C.N. Ashwath Narayana while launching a policy around the same. Notably, this E R&D policy has become first of a kind in the country. The minister noted that the aim of the policy is to contribute approximately 45 per cent to India’s engineering R&D needs during the policy tenure.
“Karnataka is currently the leading contributor to the Indian Engineering R&D industry revenue. The State is home to over 400 leading R&D Centers/ GCCs. This policy aims to retain this position, generation of intellectual properties (IPs), and to make this as skilled knowledge capital,” deputy miniter Narayana explianed while addressing the media.
It is to be noted here that the expenditure of global E R&D is forecast to clock $2 trillion by 2025, and the same industry is growing at an CAGR of around 12.5 per cent in India. Karnataka’s recently introduced E R&D policy has been uncuratained with focus on sectors that include aerospace & defence, auto, auto componentsand electric vehicles, biotechnology, pharma and medical devices, semiconductors, telecom, ESDM and software products.
This policy may also contribute to the development of these sectors as the government of India has alreadt introduced PLI schemes for various of these sectors. It is worth mentioning here that India still does not have a private semiconductor fab. The minister further explained that department of electronics, IT, Bt and S&T, Karnataka Innovation and Technology Society (KITS), and NASSCOM had drafted the policy together.
“The newpolicy intends to make Karnataka a preferred destination for global MNCs, GCC (global capability centers), engineering service providers (ESPs) and to create a suitable ecosystem all across the State,” the minister noted.
Share of India in Engineering global sourcing was estimated to be 34 per cent, $31 billion in 2019 and is expected to grow at a CAGR of 12-13 per cent to reach $63 billion by 2025. India’s share in digital Engineering sourcing, stood at 28 per cent, $5.2 billion in 2019, and is expected to grow at a CAGR of 27 to 28 per cent to reach $22 billion by 2025.
Chief Minister (CM) Research Fellowship Program
The CM Research Fellowship program, also announced with the policy, is designed to provide monthly stipend and an annual research grant to studentsin PhD programs related to Engineering R&D and the priority sectors of this policy. The aim of this program is to increase Engineering R&D research activity in the State, create a robust high-end Engineering R&D talent pool and to foster a knowledge
economy by enabling a strong industry-academia linkage.
GoK will provide monthly stipend of INR 70,000 for the first two years, a monthly stipend of Rs 75,000 for third year and monthly
stipend of Rs 80,000 for fourth year and annual research grant of Rs two lakhs for students enrolled in Karnataka.
“I would like to extend my appreciation to NASSCOM and Industry Leaders, for their knowledge partnership in curating this policy. I hope this policy enables Karnataka to spearhead contribution towards India’s ER&D economy and encourage leading MNCs to choose Karnataka as their ‘preferred ER&D destination’,” noted B.S. Yediyurappa, Chief Minister, Government of Karnataka.
