India's engineering research and development (ER&D) industry is expected to almost reach US$ 100 billion by the decade's conclusion, up from US$ 56 billion in FY25, as stated by Mr. Kishor Patil, Chairman of Nasscom’s ER&D Council and CEO of KPIT Technologies. Outpacing the overall information technology (IT) sector, which grew only 4% due to global economic challenges, ER&D achieved a 7% year-over-year growth in FY25. The industry covers areas like automotive, semiconductors, energy, telecommunications, healthcare, life sciences, industrials, and consumer electronics, and is projected to experience double-digit yearly spending increases in the future. He emphasized that broader embrace of artificial intelligence (AI), enhanced incorporation of productization and platform-driven models, and a more robust ecosystem of companies, start-ups, and deep-tech enterprises are essential for realizing this growth. Europe is becoming a significant market for Indian ER&D companies, especially as car manufacturers react to competition from Chinese firms. Tata Technologies' purchase of the German company ES-Tec for EUR 75 million (US$ 88.6 million) illustrates this growth strategy. Aerospace and defense are also experiencing growth, as Airbus and European defense firms look for more engineering resources. Furthermore, generative AI (GenAI) is revolutionizing the industry, as applications powered by GenAI are projected to rise from 10% now to 25% by 2025. Predictions indicate that IT budget allocations for GenAI will increase from 4% in 2024 to more than 6% in 2025, boosting innovation and transforming global competitiveness