India’s technology landscape is poised for a significant transformation as NITI Aayog’s Distinguished Fellow, Debjani Ghosh, emphasizes the critical need for businesses to adapt to the evolving reality of artificial intelligence (AI). Speaking at the launch of the NITI Frontier Tech Hub’s Roadmap on India’s Technology Services, Ghosh described the current moment as a “decisive inflection point,” asserting that AI represents a “structural rewrite” of business frameworks rather than a mere cyclical disruption.
According to Ghosh, industries must shift from traditional effort-based billing to outcome-based value, transitioning from bespoke coding to productized platforms. She urged that businesses need to adopt an “AI-native architect” approach, moving operations from the back office to more integrated, AI-focused methods. Ghosh’s remarks highlight the pressing necessity for the tech industry to reinvent itself in the face of transformative technological advancements.
For over three decades, India’s technology services sector has played a pivotal role in the nation’s ascent on the global stage. Ghosh underscored this resilience, noting that despite periodic forecasts of decline, the industry’s capacity for reinvention has consistently proven its worth. “Each time, the obituary was written early,” she wrote on social media platform X, reflecting on the industry’s remarkable adaptability.
The newly unveiled NITI Frontier Tech Hub initiative aims to sustain and extend India’s leadership in technology through a comprehensive roadmap developed with input from industry leaders and experts. A recent report from NITI Aayog emphasizes the imperative for industry to lead the transition into the AI era by reimagining delivery models, fostering innovation, and investing in the next phase of growth.
As the landscape evolves, firms are urged to pivot from cost-based services to AI-driven, outcome-focused solutions. This transformation includes embedding models that leverage the synergy of “human + agent + platform” across operations. Ghosh pointed out that strategic investment in research and development (R&D) and intellectual property (IP) creation—particularly in rapidly developing sectors such as healthcare, semiconductors, and cybersecurity—can unlock significant new value. Building global partnerships and driving large-scale workforce reskilling are also deemed essential for maintaining India’s competitive edge.
The government’s role is crucial in this tech-led future. NITI Aayog advocates for policies that bolster innovation, talent development, and ease of doing business. Key recommendations include scaling digital R&D and IP creation through a structured national framework and simplifying approval processes via a National Tech-Services Single Window. The report also calls for a supportive policy environment for software as a service (SaaS) and technology firms, incorporating capital-targeted R&D support and regulatory reforms.
Furthermore, a nationally coordinated AI talent mission is proposed to prepare India’s workforce for the impending shifts driven by AI technologies. Collectively, these measures are intended to position India as a preferred destination for global technology operations and investments.
Looking toward the future, the report outlines a vision for achieving USD 750-850 billion in annual revenue from the tech services sector by 2035, which aims to sustain a 7-8 percent share of the country’s gross domestic product (GDP) and expand global market share beyond 25 percent. However, a projected shortfall of USD 250-300 billion highlights the urgency for decisive action.
Ghosh believes that emerging technologies, including generative and agentic AI, cloud infrastructure, and digital engineering, present India with a unique opportunity to close this gap and emerge as a leader in reliable, innovation-driven digital services. The roadmap lays the groundwork for India’s tech sector to evolve in alignment with the broader vision of Viksit Bharat@2047, positioning it to tackle upcoming challenges while seizing growth opportunities in the global market.
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