Inside India looks at the growing trend in outsourcing research and development to India, and how India will fabricate its first microchip in two years.
This report is from this week's CNBC's"Inside India" newsletter which brings you timely, insightful news and market commentary on the emerging powerhouse and the big businesses behind its meteoric rise. Like what you see? You can subscribeHowever, several new technology firms in the country aim to gain a share of research and development budgets – money previously protected for spending in Western markets.
The Indian government, meanwhile, has been eager to support the manufacturing sector in creating mass employment, a key economic and political challenge that the services sector alone hasn't been able to address.However, India has also long suffered from the lack of sufficient high-tech companies and jobs leading to one of the largest"brain drains.
"Once you're embedded with a company like Cyient, it's very difficult for you to strip yourself out," Desai, whose fund holds a stake in the stock, told an audience of professional investors atconference in London this week."These are sticky relationships that the company is able to cultivate, which helps reinforce the competitive advantage of the company."
"Not necessarily the R&D, which is at the leading edge of what the businesses are doing, but the legacy R&D which they can benefit from the cost advantage of scaling it offshore," Desai told CNBC on the sides of the conference.
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