Scaling High-Value ER&D, R&D and Digital Engineering

Driven by a robust pool of technical talent, India’s engineering services exports expanded nearly eightfold over the past decade to reach ₹1.32 lakh crore (US$ 13.8 billion). This rapid growth highlights the country's evolution from traditional cost-effective outsourcing to a global hub for high-value engineering, research and development (ER&D), and technology-enabled services. Indian enterprises now provide core technical support to global businesses across major sectors—including automotive, aerospace, industrial manufacturing, electronics, and telecommunications—by delivering specialized capabilities in engineering design, product development, and complex technical solutions. Moving further up the global value chain, Indian service providers are tapping into rising global demand for product engineering, digital engineering, embedded systems, simulation, and testing. Grounded in the nation's strong information technology foundation and digital infrastructure, the ER&D segment effectively complements software and business-process exports. Continued investments in innovation, advanced skill sets, and industry-academia partnerships are positioning Indian companies to lead in emerging frontier technologies such as artificial intelligence, industrial automation, electric mobility, semiconductor design, and advanced manufacturing. $LTTS