Over the last twenty-five years, Indian capabilities in the field of design, engineering and technical consultancy have developed to a level comparable to that of the developed countries, the study stated.

Currently, there are more than 5,000 consultancy organisations in the country which offer comprehensive services in different areas, including natural resources, transport, public utilities and process industries. Besides, they are capable of setting up projects using simple to sophisticated technologies comparable to the world standards, the study stated.

According to the study, many countries in Europe, CIS, south-east Asia and the Middle East are poised for strong economic growth. Large investments in differentsectors are likely in all these countries. They represent the best potential markets for engineering consultancy services from India, especially in the areas of energy and transportation.

India's advantage in consultancy services originates from its capability to take on large-scale design engineering jobs due to the availability of technical manpower. India also has significant wage-based cost advantages in engineering and technical personnel. The cost of an engineering and technical professional in India is approximately one-eighth of that in the UK and Europe and is about a third of that prevalent in the south-east Asian countries of Indonesia, Malaysia and Thailand. Indian engineering also has the reputation of being among the best in Asia, with productivity levels comparable to the best in the world.

The study stresses the need for a large capital base and investment in research and development (R&D) to develop process know-how. Indian companies' expenditure on R&D is inadequate. One of the crucialhurdles for Indian consultancy companies is their lack of experience in executing large projects overseas since many Indian comsultancy firms take up small assignments as sub-contractors to overseas consultancy firms. International perception about Indian companies is that they largely depend on technology.

The study concludes that prospects for Indian exports in engineering consultancy will be enhanced if Indian companies adopt a consortium approach with turnkey contracting firms and explore sourcing of equipment from India as well. Collaborations with reputed overseas technical consultancy firms for transfer and absorption of technology are crucial.