India Tech Inc: Paving the Path to Global Leadership Through Innovation

A new BCG report emphasizes India's need to transition into intellectual property-led and platform-driven segments to capture more of the global technology market. It suggests key strategies such as modernizing core services, making strategic big bets in tech, and fostering AI-driven innovations for future growth.

India's burgeoning technology sector, a USD 300 billion powerhouse contributing 7% to the national GDP, is urged to steer towards intellectual property-led and platform-driven sectors. This strategic pivot, detailed in a recent Boston Consulting Group report, aims to tap into the expansive USD 8.4 trillion global technology market.

Currently, India's tech industry generates over USD 200 billion in exports and provides employment to nearly 5.8 million people. While commanding a 15-17% share of the global IT consulting and services market, the report highlights that merely 17% of global tech revenues stem from IT-enabled services, with the remainder concentrated in faster-growing domains like hyperscale cloud platforms, semiconductors, software, deep tech, and AI-first enterprises.

The BCG report, titled 'India Tech's Next Innings: Signals, Shifts, and Considerations for India Tech,' advocates for a strategic transformation more aligned with capital-intensive, R&D-focused, and IP-led segments. Recommendations include upgrading the value chain in core IT services, judiciously investing in areas such as semiconductors and deep tech, and developing AI-driven platforms and software. It further calls for cohesive efforts in talent reskilling, fostering global partnerships, and implementing visionary policies to sustain growth.

(With inputs from agencies.)