The Engineering Research & Development market in India is expected to grow to $42 billion by FY2022, the National Association of Software and Services Companies said in a report.

The report said the key growth drivers for the industry are the country’s capabilities in the Automotive and Construction & Heavy Engineering (C&HE) market, helped by local talent and domestic demand.

“The industry is at the optimum position with the right talent, expertise and global market access and huge potential to grow. With a clear-cut focus on these newly identified technologies, we hope to witness a systematic approach in reaching the projected targets in the years ahead,” KS Viswanathan, Vice President - Industry Initiatives at Nasscom, said in a statement.

The sector is also seeing strong investment from international companies which are setting up their Global In-house Centres in India.