In the coming years, the impact of last decade of exponential improvements in technology will force organizations to radically transform. What is driving this change? How can it help your MSME’s prepare?
Research & Development has a significant role to play when it comes to improving organizational performance, and the Indian MSME sector is no exception to this. With increasing competition, the need of the hour for the Indian MSME sector is to gain exposure and awareness of technological advancements.
As per Ministry of Science & Technology and Earth Sciences, India spends about 0.9% of its GDP on R&D as compared to US which spends 2.79%. India still lags BRIC nations where R&D spend is more than 1% of GDP.
Research & Development not only ensures a better understanding of the market dynamics, but also a firm’s own strengths and weakness to align with the market forces. By adopting R&D, SMEs can embrace two very critical aspects – INNOVATION & INDEGINIZATION. These are critical factors for not only business growth but also for overall economic growth of India.
To develop young budding talent in the country, the Government has opened Jawaharlal Nehru Centre for Advanced Scientific Research and National Centre for Biological Science in the R&D hub Bangalore.
Indian Council for Fertilizers Research is planned to be launched by the Government to encourage development of new fertilizers and nutrients which will boost the growth of agriculture sector in the country.
The government has been providing direct incentives for augmenting in-house R&D activities of a firm irrespective of size. Any industrial unit receiving recognition from the Department of Science & Industrial Research for its in-house R&D center is provided tax-deduction equal to the revenue and capital expenditure spent on R&D. Recently, this deduction has been increased to 150 percent of the research expenses.
Source – http://www.moneycontrol.com/