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Microsoft, Motorola and Intel have all increased their research and development facilities in India. In January of 2003, Microsoft launched its third international research centre in India. Intel's R&D centre in India designs everything from hardware to software that is used to make its semi-conductors work with other programs.

Intel's development team in India works on communications products that are used worldwide. Motorola is using its R&D centre in India as the R&D hub of the company. Motorola's India R&D centre created a sub-US 40 phone which is aimed at the emerging market consumers.

Many other American based companies are already designing auto parts, consumer electronic items in India by either outsourcing or setting up their own design centre in India. Patents granted to India are rising. According to the data from the U.S. patents office, in the year 2003 patents granted to India-based innovators increased by over 36%.

According to the latest figures, the revenues from product development and R&D services in India stood at around 3 billion US dollars.

The huge pool of highly educated scientific talents, lower wages, lower research cost, the relatively easy access to participants in clinical trials (for pharmaceutical companies), reforms in India's patent regime providing more protection to intellectual properties will encourage more foreign companies to either set up their own R&D centres in India or outsource their R&D activities to an India-based company. We will see a continued increase in revenues generated from product development and R&D services in India in the coming years.

What's Next?

We are seeing the sign of the success of R&D in India spilling over to the creative industry in the country as more and more foreign clients are either outsourcing their creative and design works to the Indian companies or setting up their centres in the country. Recently, India-based media and advertising companies have created advertising materials for consumer goods like Arial (consumer product), Cobra Beer, Peugeot and others. This trend is likely to continue.

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* Contributed by -
Sanjeev Kumar is CEO of Delamore & Owl Group of Companies and the Managing Director of Delamore Consulting Ltd.
He holds dual master's degrees: one in Business Administration and another in International Finance. He has been the 2002 recipient of the "Southeast Asia Young Achiever's Award".