Challenges and Opportunities for R&D Centers in India

India has rapidly become a preferred destination for global innovation hubs. But why is this happening, and what should decision-makers know? R&D Centers in India have emerged as critical growth engines for multinational companies seeking access to skilled talent, cost advantages, and thriving ecosystems. According to a NASSCOM report, over 1,400 Global Capability Centers (GCCs) operate in India, contributing to $35–40 billion in annual exports.

Yet, with opportunity comes complexity. From talent attrition to regulatory roadblocks, establishing a successful R&D presence in India requires careful planning.

This article explores the key opportunities and challenges for setting up Global Inhouse Centers in India and outlines how companies can succeed in this dynamic environment.

Why India is a Top Destination for Global R&D Centers

India has positioned itself as a global innovation hub for several reasons:

Talent availability: Home to 4.5 million STEM graduates annually

Strong startup ecosystem: Over 90,000 registered startups as of 2023

Global IT reputation: Trusted delivery partner to Fortune 500 companies

Cost advantage: Operating costs 30–50% lower than Western markets

Major companies like Google, Microsoft, Bosch, and GE have established Global Inhouse Centers here to accelerate product development, scale engineering, and drive innovation.

How Stepindus Can Help Navigate Your India Entry

Setting up R&D Centers in India requires careful planning, execution, and ongoing optimization. Stepindus is a trusted consulting partner specializing in:

India Entry Advisory Location feasibility and selection Compliance and legal setup Talent acquisition and retention strategy GCC operations and performance optimization

Whether you are building a new Global Inhouse Center or scaling an existing one, Stepindus brings deep industry expertise, a local network, and proven frameworks to help you succeed.