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Why India Isn’t Leading the Global IT Industry Yet

By Sanjay Kumar

India’s IT sector has been a global success story, evolving from back-office outsourcing in the 1990s to AI, cloud, and digital transformation services today. Contributing 7.5% to India’s GDP and employing over 5 million people, Indian IT firms like TCS, Infosys, Wipro, and HCL serve Fortune 500 clients across the globe. India commands 55% of the global outsourcing market, and its digital public platforms like Aadhaar, UPI, and CoWIN have shown the world how to scale inclusive technology.

Yet, India remains more of the “world’s back office” than a creator of globally dominant technology products.

India’s Limitations in Tech Leadership

  • Service-Centric Industry: Strong in delivery, weak in global product innovation.

  • Low Deep-Tech Investment: R&D remains underfunded; focus skews toward short-term contracts.

  • Brain Drain & Skills Gap: Top talent migrates abroad; domestic curricula lag behind global needs in AI, robotics, semiconductors, and quantum computing.

  • Export Dependence: Heavy reliance on North America & Europe restricts risk-taking and strategic independence.

  • Hardware Deficit: Without a semiconductor and electronics backbone, India cannot become a full-spectrum tech leader.

  • No Global Consumer Tech Brand: Unlike the U.S. (Apple, Google, Microsoft) or China (Huawei, Alibaba, Tencent), India has yet to create a household global brand.

Bridging the Gap: A Roadmap for India

  1. Deep-Tech Investment

    • Expand incubators, provide R&D tax incentives, and push public-private partnerships in AI, quantum, cybersecurity, and advanced computing.

  2. Education Reform

    • Move from rote-learning to hands-on, design-driven curricula.

    • Emphasize AI, blockchain, robotics, IoT, and quantum.

    • Foster industry-academia collaboration: joint research, industrial internships, hackathons, sponsored labs.

  3. Strengthening Semiconductor & Manufacturing

    • Accelerate India Semiconductor Mission.

    • Build manufacturing clusters and attract global chipmakers with infrastructure and policy support.

  4. Global Brand Creation

    • Encourage Indian companies to build IP-led global products, not just service contracts.

    • Support with IP protection, venture funding, and international marketing.

  5. Digital India for the World

    • Export India’s proven platforms like Aadhaar and UPI to other developing nations, positioning India as a product exporter rather than just a service hub.

Conclusion

India has the talent pool, scale, and entrepreneurial energy to shift from being a digital delivery hub to a global digital leader. To achieve this, the country must embrace bold reforms, deep-tech investments, and self-reliance in hardware and innovation.

The question is no longer can India lead the global IT industry—but will it choose to, by taking calculated risks and pursuing long-term vision?

About the Author

Sanjay Kumar is a veteran journalist with experience across leading organizations such as Times Group, NDTV, Hindustan Times, India Today Group, and Microsoft News. He has also served as Editor-in-Chief of International Finance Magazine (UK) and as Senior Vice President & Managing Editor at Geospatial World.