AI, Physical AI to reshape India’s ER&D opportunity: NASSCOM

NASSCOM reports that Artificial Intelligence and Physical AI are set to transform India's engineering research and development sector. The industry body projects that India's ER&D revenue will exceed $100 billion by 2030 as companies shift toward intelligent, system-level product development.
Why it matters
This shift represents a significant economic opportunity for India to move up the global value chain in technology and manufacturing.
Artificial intelligence (AI) is reshaping India’s engineering research and development (ER&D) landscape, while the emergence of Physical AI is opening up new opportunities across robotics, autonomous systems, intelligent products and industrial applications, NASSCOM said in Bengaluru on Tuesday.
Physical AI is an advanced branch of AI that enables machines, robots and autonomous systems to perceive their surroundings, reason and act in the physical world. Unlike conventional AI, which largely operates in digital environments, Physical AI connects intelligence with real-world machines and systems.
According to NASSCOM, AI is increasingly becoming an integral part of core engineering workflows, transforming how products are designed, developed, tested and operated. As engineering becomes more software-defined, data-driven and intelligent, India’s ER&D industry has an opportunity to expand its role in global product development and assume greater system-level and lifecycle ownership.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in