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.

- Srinath Sridharan

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 transformation that India underwent.

In the 1990s, India grappled with economic weaknesses and 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.