India is projected to contribute 22% to the global Engineering Research and Development (ER&D) sourcing market by FY30, says a Nasscom-BCG report.

India is projected to contribute 22% to the global Engineering Research and Development (ER&D) sourcing market by FY30, says a Nasscom-BCG report.

According to a Nasscom-BCG report titled ‘Seizing the ER&D Advantage: Frontiers for 2030’, India’s market share will increase from $44-45 billion in 2023 to $130-170 billion by FY30, making it a preferred destination for global sourcing due to its vast pool of digital talent and a mature ER&D ecosystem.

The report predicts that the software, automotive, and semiconductor sectors will contribute over 60% of India’s ER&D sourcing share by FY30. Notably, the semiconductor sector is expected to see the highest jump, increasing from 9% to 12%.

KS Viswanathan, vice president (Industry Initiative) at Nasscom, said, “India’s position in the global ER&D sourcing arena is truly unique, driven by our innovation expertise and ability to provide scalable talent. As we navigate the transformative megatrends in this space, collaboration among government, industry and academia becomes pivotal.”

Viswanathan emphasized the need to “establish robust infrastructure, chalk out effective policies, enhance ER&D skillsets, and provide industry-tailored training, thereby ensuring employability to boost India’s position as the ER&D hub for the world.”

Amit Kumar, managing director and partner at BCG, stated, “India will play an increasingly important role in the global ER&D arena by helping drive the next-gen ER&D agenda across sectors.” He identified major ER&D accelerators for India, including automotive (xEV, connected vehicle, and infotainment), energy, utilities, oil & gas (climate and sustainability, and digital operations), and medtech.

Kumar added, “These factors are expected to increase India’s ER&D contribution from an estimated $45 billion in 2023 to nearly $150 billion by 2030. Therefore, India is expected to increase its share of the global ER&D Sourcing market to 22% by 2030, compared to 17% in 2023. The prominence of ‘digital’ in engineering will also continue to increase, likely contributing 48% of all ER&D spend by 2030.”

Globally, business ER&D spending has experienced a compound annual growth rate of 7-8% from 2020 to 2023.

https://www.financialexpress.com/market/indias-share-in-global-erampd-sourcing-market-to-reach-130-170-billion-by-fy30-3271096/