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Box 6: R&D Activities in India
Motohashi (2015) suggests that India is a highly attractive R&D destination on account of the
opportunities offered for outsourcing, highly skilled labour force, low cost labour and R&D activities.
This has led to large scale off-shoring from US firms, especially in the IT industry and that “companies
such as IBM, Intel, and GE conduct cutting-edge R&D in India. The economic growth and increasing
income levels in India have made the Indian market attractive, and local R&D activities have been on
the rise, particularly in the automotive market. Thus, India has world-class potential both as a global
R&D center targeting global markets and as a regional R&D hub for its local market and markets
in emerging countries”
Attractiveness of FDI Destination by Host-Country
and Motivation (per cent), 2004
Source: Motohashi (2015)
Highlights of R&D incentives in select countries (2012-17)
Tax Tax Tax Tax
Credit
on the R & D
China
India
Thailand
Source: Saha and Shaw (2018)
Source
