R&D is one of the important propellants’ of the industry’s growth. There are numbers of benefits of investing in R&D that are beyond innovation. The creation of innovative products not only adds new revenue streams but also increases brand visibility as well as opens up avenues for collaboration and PPP. The Government of India offers various tax incentives to encourage investments in R&D.
Still R&D in the chemical sector in India is not up to the mark. Continued R&D efforts in the part of the industry helps to improve the quality standards, obtain higher yields resulting in reduction in cost of production and to earn competitive edge in the International Market.
As per the latest statistics available, Indian Chemical Industry spends around 2-3% of their total turnover on R&D compared to 9-10% by the MNCs in overseas countries. According to Oxford Economics, the chemical sector invested US$51 billion in R&D in 2017. China was home to the largest chemical R&D spend, with an investment of $14.6 billion, followed by the US and Japan, with a $12.1 and a $6.9 billion investment, respectively. India was ranked 7th with $1.8 billion investment in R&D in 2017. The industry needs to make large investments in R&D to counter competition from the international chemicals industry.
There is a need of creation of unique revolving technology fund for R&D commercialisation to be operated without inter-department barriers, enlarging the scope of chemical MSME cluster concept to provide direct R&D access to their constituent units, turnover as the basis for extending technology/product development support, measures to enhance the Indian inventorship of patents and creating an institution framework for vision and foresight development of potential chemical industry growth sectors.
R&D institutes within industry and R&D labs within college and universities will play a cohesive role by working together with chemical industry and solving their problems. All this will definitely make Indian chemical industry aatmanirbhar.
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