India's ER&D pivots to physical AI enabled by generative AI
India's engineering R&D scene is getting a major upgrade: companies are now focusing on "physical AI," basically, bringing smart tech into real-world stuff like factories, cars, health care devices, and infrastructure.
Thanks to generative AI speeding up software development and changing pricing models, the industry sees fresh opportunities.
Mritunjay Kumar Singh of L&T Technology Services calls this shift a big thing, saying AI will be embedded in day-to-day functions and that it could open up a revenue stream which we have not experienced.
Nasscom forecasts $2.5T ER&D by 2030
Nasscom predicts global ER&D spending will reach $2.5 trillion by 2030, with India's exports set to nearly quadruple from around $21 billion to $47 billion, growing 12% annually.
Big players like HCLTech are jumping in with semiconductor engineering and Physical AI deals involving ASIC development work on advanced nodes.
Leaders say the complexity of physical AI, mixing hardware, sensors, and cloud tech, helps established firms stay ahead while sparking innovation and keeping things resilient against market changes.