Can India Become A Tech Product Nation?
The 1990s witnessed a remarkable turning point for India's economy, as the country emerged as a global leader in IT-enabled services (ITES). Bengaluru and Gurgaon, cities that epitomise India's IT prowess today, gained international prominence during this period. However, India's journey towards becoming an IT product nation encountered hurdles, relegating it to a reputation primarily focused on USD-INR arbitrage work and being a market for the infamous phrase – ‘body-shopping’. Yet, the real story lies in the underlying challenges and subsequent transformations that India underwent.
In the 1990s, India grappled with economic weaknesses and a lack of political heft on the global stage. Its civic infrastructure lagged far behind its present state, although there is still vast room for improvement. Today, India boasts a world-class digital ecosystem, a feat we hope to replicate in civic infrastructure. The nation was undergoing economic reforms aimed at liberalising its economy and integrating it with the global market. This era witnessed a shift from a predominantly state-controlled economy to one embracing market-oriented policies.
While these reforms paved the way for a thriving IT-enabled services sector, they failed to adequately address the requirements for IT product development. The struggles faced by early founders of current IT giants, including the daunting task of importing cutting-edge computing devices, have been widely chronicled. India's economic weaknesses during this period played a pivotal role in hindering its progress in the IT product space.
Inadequate infrastructure, limited access to capital, and a shortage of skilled technology talent posed significant challenges for Indian companies. Investing in research and development, innovation, and building a robust product ecosystem proved difficult. Additionally, India's limited geopolitical influence at the time hindered foreign investment and international collaborations for IT product development. The country's reputation even raised sarcastic questions from global clients about elephants roaming its roads.
Between the 1970s and 1990s, India witnessed a substantial brain drain as talented professionals sought better opportunities abroad. The country's restrictive licensing policies restricted the ability of professionals to innovate, and limited capital hampered progress. Professionals across sectors migrated from India, compounding the challenges faced by the IT industry. The loss of talent, combined with a limited pool of skilled workers, made it challenging for Indian companies to compete in IT product development. The perception of limited domestic growth opportunities for professionals, particularly in the technology sector, played a significant role in the talent drain during the 1990s. Many Indian professionals sought work environments that fostered innovation and provided platforms for cutting-edge ideas, drawing them to product companies and startups abroad. These individuals yearned for an ecosystem that encouraged creativity, offered higher salaries, better work-life balance, and access to advanced technologies.
Impact on India's Aspirations:
The brain drain of Indian talent, particularly in technology, significantly hindered India's aspirations to become an IT product nation. The exodus of skilled individuals deprived the country of their expertise and innovative ideas. This drain not only weakened the domestic ecosystem for product development but also limited knowledge transfer and technological advancements. The consequences extended beyond economic terms, impacting India's intellectual capital and potential for technological progress. India's cultural context also played a role in inhibiting the development of IT products. The prevailing mindset emphasising employment as stability and risk aversion discouraged entrepreneurial ventures and experimental approaches. This cultural inclination hindered the creation of a vibrant startup ecosystem necessary for fostering innovation and product development.
Over the past decade, the landscape has transformed significantly with the advent of the Digital India ecosystem and the rise of a new generation of entrepreneurs. The government's Digital India initiative has played a pivotal role in fostering technological innovation, entrepreneurship, and startup growth. The digital revolution brought about by Digital India has fostered connectivity and bridged the digital divide across the country. Affordable smartphones, high-speed internet access, and digital infrastructure have empowered Indian youth with unprecedented opportunities. This paradigm shift has fueled entrepreneurial ambitions, enabling young individuals to harness their potential and create successful ventures.
India's startup ecosystem has witnessed remarkable growth, attracting investments and attention from both domestic and international players. Young entrepreneurs leverage cutting-edge technologies like AI, ML, and blockchain to build innovative products and services tailored to various sectors. Government support and initiatives like Startup India provide mentorship, funding, and access to a vibrant network of investors, incubators, and accelerators. Recognising the importance of retaining talent and addressing citizens' concerns, India has made substantial efforts to improve its domestic ecosystem, foster entrepreneurship, and provide better career opportunities. Changing the perception of India as a hub for technology and innovation has led to a reverse brain drain, with talented individuals returning to contribute to the country's growth. The rise of digital platforms, e-commerce, and digital payments has opened new avenues for businesses, resulting in a thriving digital economy.
Indian startups have recognised the potential of catering to global clients, taking advantage of technological advancements and reducing entry barriers in global markets. The mindset shift among Indian entrepreneurs to actively seek international customers has enabled startups to tap into a vast customer base and expand their reach globally. Skilled talent, cost-effectiveness, and a culture of innovation have become significant advantages for Indian startups, making India a preferred destination for outsourcing and product development partnerships.
India has transformed into a digitally-led tech product nation, featuring a thriving startup ecosystem, innovative solutions, and an influential presence on the global stage. Of course, there is much more to be done, and product supremacy is yet to be achieved, unlike what primarily the American tech majors have. While there is still progress to be made, India's journey from an IT back office hub to a hub of technological innovation and entrepreneurship is a testament to its resilience, determination, and the transformative power of digital advancements. This transformation embodies the collective efforts, sacrifices, and hardships borne by countless families who participated in this remarkable journey. This is the New India – emerging as a global force in technology and embracing a future of endless possibilities.
