Karnataka launched the country’s maiden Engineering Research & Development (ER&D) Policy on Tuesday to raise its contribution to the sector in the country to 45% in the next five years.
The State government anticipates the policy has the potential to create over 50,000 jobs in the ER&D space in five years. According to industry apex body Nasscom, ER&D has the potential to become a $100-billion industry in the country in the next five years.
Unveiling the policy, Deputy Chief Minister C.N. Ashwath Narayan, who holds the IT/Biotechnology and Science and Technology portfolios, said, “The ER&D sector in the country is the fastest growing industry with a CAGR of 12.8%. Meanwhile, the global engineering research and development industry is expected to reach a spend of $2 trillion by 2025. Considering this scenario, this policy aims to prepare the State to make use of the future opportunities emanating from this sector.”
The new policy, drafted jointly by the Department of Electronics, IT, Biotechnology and Science and Technology, Karnataka Innovation and Technology Society, and Nasscom in consultation with industry stakeholders, has identified five key focus sectors such as aerospace and defence; auto, auto components and EV; biotechnology, pharma and medical devices; semiconductors, telecom, ESDM; and software products.
“We are already the leading contributor to the country’s ER&D industry revenue. Our State is home to over 400 R&D centres, global capability centres and engineering service providers. Through this policy, we are aiming to grow our contribution, develop more intellectual properties (IPs), and make Karnataka a skilled knowledge capital,” he added.
According to Dr. Narayan, his government would invest in skilling, improve academia and industry collaboration, and also encourage IP creation locally in a big way.
In his keynote address Ajay Prabhu, president, Technology Services at QuEST Global and chair for Nasscom Engineering R&D (ER&D) Council, said, “The new ER&D policy heralds a new chapter in the State’s position as a hub of innovation and transformation. Significant investments by global engineering and IT services companies in the State have already laid the groundwork that makes the State an attractive destination for ER&D, contributing a sizeable 40% to the country’s overall revenues in this sector.”
Through this endeavour, the State government would provide greater impetus to foster innovation. The ER&D sector in India was expected to generate over 6.5 lakh jobs by 2025. This policy would play a pivotal role in turning this expectation into a reality for both Karnataka and India, Mr. Prabhu added.
