India is attracting global companies across industries as the prime location for leading-edge Research and Development (R&D) projects. In 1985, Texas Instruments set up the first R&D center in Bangalore. Since then, many of the world’s largest corporations have set up similar centers in India. These R&D centers go by many names. Some of them include -
- Contract research organizations (CROs)
- Global Capability Centers (GCCs)
- Profit Centers
- Captive Technology Centers
Companies from various global industries employ more millions of technically qualified Indians at these centers. The industries range from - information technology (IT), telecommunications, Internet of Things (IoT), automobile, pharmaceutical, artificial intelligence, and data analytics.
Some companies that have set up successful R&D projects in India include – Motorola, Intel, Adobe, and many more. These R&D centers are proving that cutting-edge products for the international market can be developed out of India. Many of these R&D centers also serve as learning grounds for budding Indian entrepreneurs.
However, setting up R&D centers in India is not easy. There are some pressing R&D challenges that companies must address before entering this promising sector. Here are some of the top challenges that R&D companies may face while setting up new centers in India –
- Difficulties in assessing the value of new ideas coming from the new researchers at the novel R&D centers.
- Managing the complexity of hiring local talent.
- Addressing local legal and compliance-related formalities
- Setting up HR departments to encourage collaboration across different centers and functions
- Obtaining appropriate tax credits, government grants, and other benefits provided by the government
These are also the reasons why turnkey projects are so popular in India’s budding R&D sector. Turnkey projects are pre-designed “packages.” Everything R&D companies need to set up new centers in India is put together by local providers. Then, these services are sold as a package.
The Rise of Turnkey R&D Projects in India
India’s R&D centers are no longer mere low-cost service providers. Over the past 35 years, Indian R&D projects have asserted themselves as first-rate sources of Information. Behind the success of many of these projects are turnkey project developers. Turnkey project developers are providers who complete the whole project on behalf of their buyers.
Once the project is complete, the developers “hand over the keys” to the buyers. In the R&D sector, turnkey project management is critical. It provides tremendous advantages to R&D companies that want to set up new centers in India. Time and resource-intensive projects can impair an organization’s ability to conduct regular business.
That’s why in the Indian R&D sector, turnkey project developers are set to be key players. They help R&D projects –
- Identify new projects
- Plan the development of the R&D center
- Develop the R&D center
- Implement the R&D company’s agenda in the new center
- Sell the center once project objectives are completed
Turnkey R&D projects undergo life cycles. Some common responsibilities of turnkey project developers in India’s R&D sector include –
- Delivering locations that are ready for occupation; services include - site selection, space planning, negotiations with local authorities, and construction.
- Complete installation of R&D equipment, machines, etc., until the new center, is ready for immediate use
- Provide training for the staff at the new center
- Monitor overall responsibilities and objectives of the clients
- Overseeing administrative responsibilities including – meeting local legal formalities, tax requirements, etc.
- Setting up HR departments for staff management
R&D companies and startups keen on setting up innovation centers in India can benefit a lot from these services. The leading turnkey project developers in India’s R&D sector provide end-to-end services. From obtaining tax benefits to setting up dedicated teams of engineers to meet company objectives – they do it all.
The potential for R&D in India is second to none. Turnkey project developers help R&D companies and startups overcome ground-level challenges. The importance of these services cannot be underplayed in the current economic situation. Long-term partnerships with turnkey project developers in India’s R&D sector can be hugely beneficial.
Benefits of Partnering with Turnkey Project Developers in India’s R&D Sector
Innovation is highly valued in India. But investing in and setting up R&D facilities in India offer many more benefits beyond just innovation. For many startups setting up R&D teams in India has led to business growth, higher market participation, and added revenue. Some firms even gain higher brand visibility after setting up R&D centers in India.
Long-term partnerships with turnkey project developers in India make these benefits easier to acquire. These local experts help R&D companies and startups make the most of the intrinsic benefits of investing in India –
A Growing Middle-Class :
India has a burgeoning middle-class section. R&D companies can meet the aspirations of these people. There’s a massive market for a host of innovations, technologies, services, and products. The growing Indian middle-class section is the perfect starting point for innovation for R&D companies.
Easy Execution :
India boasts of a huge pool of English-speaking professionals. This type of manpower is impossible to find in most developing countries. That makes the implementation of R&D plans relatively easier compared to other countries.
Catalytic R&D Policies in India :
The Indian government showed its dedication to innovation by upgrading its telecom infrastructure in the past decade. Now, the aim is to make India at par with most nations when it comes to R&D in different sectors.
India’s Union government is currently in the process of establishing up to 20 R&D infrastructure centers. Academicians and professionals from different startups and industries will be given access to these centers. They’re set to be called “Sophisticated Analytical and Technical Help Institutes” or SATHI.
These efforts are testaments to India’s dedication to building strong science and technology infrastructures. Collaboration with top engineering and tech schools (e.g., the Indian Institutes of Technology) will only foster more innovation.
Indian Engineering Talent :
Samsung India recently made the headlines after announcing its plan to create robust R&D pools in India. The company has hired 1000+ Indian engineers who will work in cutting-edge technologies like AI, IoT, ML, and Deep Learning. The company already has three R&D centers in India that employ over 9,000 engineers.
It’s high time other R&D companies and startups capitalize on India’s extensive pool of engineers. Every year, the country produces over 1.5 million engineering graduates. Local turnkey project developers can give R&D companies and startups access to this talent. These developers oversee HR, recruitment, employee retention, etc.
With their assistance, R&D companies and startups can have high-quality, long-term employees under their payroll.
Royalty Income :
R&D projects in India come with promising financial benefits. Any breakthroughs that R&D experts make in these centers in India can be patented. R&D companies and startups can provide these patents to other companies on a usage basis to yield continuous income. Local turnkey project developers ensure that the local centers achieve company objectives in time.
They do their best to cut down the time to market innovations, products, technologies, etc. More importantly, local turnkey project developers have a proven model of success. Many of these developers have generated phenomenal results for R&D companies and startups in the past.
Hence, new R&D companies and startups can enter the Indian market with confidence. Local turnkey project developers also have in-house technology/innovation, management teams. Aside from administrative assistance (HR, compliance, etc.) they also help companies achieve their project-related goals.
Adequate Regulatory and Tax Incentives
Companies that hire employees into their R&D wings receive several tax credits and benefits from the Indian government. These companies also receive support while setting up their R&D facilities. Local turnkey project developers know how to make the most of these tax credits, benefits, and government assistance programs.
They tap into the local workforce. They hire skilled workers for approximately 50% less remuneration compared to global standards. These efforts maximize the R&D facilities’ productivity. Local turnkey project developers also cut costs by optimizing workspaces and managing the employees.
The biggest cost-benefit of partnering with local turnkey project developers comes in the form of adequate regulatory and tax incentives. Local turnkey project developers can help R&D companies obtain up to 200% tax deductions. No other country offers so many regulatory and tax incentives for R&D companies.
In terms of direct taxes, any money companies spend on R&D companies' efforts receives tax breaks and incentives. Local turnkey project developers make sure that their clients’ R&D contributions are recognized and rewarded by the local government. They also help R&D companies and startups obtain state government incentives.
Local turnkey project developers also help R&D companies and startups obtain indirect tax benefits. These benefits include –
- Applying for Export Promotion Capital Goods (EPCG) schemes.
- Obtaining customs exemptions for the import of goods that aid R&D in the country.
- Obtain accelerated depreciation to cut costs in the early years of the R&D centers.
Turnkey project developers offer fully-managed business operations. Their transparent and hassle-free services ensure that help R&D companies and startups have all their needs met in one place. From HR to recruitment to compliance management to setting up R&D facilities – their end-to-end support is hugely beneficial.
Any company that wants to embrace innovation in India can benefit from partnering with local turnkey project developers.