India’s first ER&D policy

Key Highlights:

• Focus Sectors: Aerospace & defence, auto & EVs, biotech & medical devices, semiconductors & telecom, software products.

• Skilling & Innovation:

  • Investment in skilling and academia-industry collaboration.

  • Support for IP creation.

  • Funding for college projects and industry-relevant courses.

• Incentives:

  • Up to 50% rental reimbursement (max ₹2 Cr) for MNCs outside Bengaluru Urban.

  • 20% investment subsidy (max ₹2 Cr) and recruitment assistance.

  • Case-by-case assessment based on investment and job creation.

• Aims:

  • Strengthen Karnataka as a global ER&D hub.

  • Increase IP generation and job creation (target: 50,000 jobs in 5 years).

  • Attract and expand MNC ER&D centres.

  • Bridge talent-industry gap.

• Need:

  • India’s ER&D sector growing at 12.8% CAGR.

  • Global ER&D spend projected at $2 trillion by 2025.

  • Karnataka hosts many of India’s 900+ ER&D global capability centres.

  • Potential for India to reach $100 billion ER&D market in 5 years (NASSCOM).

• Industry 4.0 Linkages:

  • Digital manufacturing, automation, Product-as-a-Service, and additive manufacturing.