India today stands at a defining moment in its development journey. The nation has already earned its place as the world’s technology services hub, with an industry worth $280 billion driving economic growth and global recognition. Yet, the coming decades will demand more than efficiency and scale; they will demand boldness, originality and vision. As the country sets its sights on Viksit Bharat 2047—a fully developed India by the centenary of independence—the question is not whether India can rise to the challenge, but how it will.
The answer lies in India’s transition from being primarily a service-led economy to becoming a true product innovation powerhouse. This is not a mere shift in ambition but a profound reorientation of mindset, strategy and positioning on the global stage. Achieving this transformation requires three bold shifts: reimagining the services playbook in the era of artificial intelligence, fostering a culture of creation and intellectual property ownership and ensuring that technology serves as an equaliser rather than a divider.
For decades, India’s IT and outsourcing sector has been the backbone of its economic success. The country has built a reputation as the services capital of the world, providing reliable, cost-effective and large-scale solutions for global enterprises. This legacy has powered economic growth and cemented India’s position in the global value chain.
But the era of artificial intelligence is rewriting the rules of the game. Generative AI is already mainstream, while agentic AI—where autonomous systems interact, collaborate and perform tasks traditionally reserved for humans—is rapidly evolving. AI is no longer a futuristic concept; it is embedded in daily life and transforming industries at an unprecedented pace. In this context, the traditional services model, however successful, risks becoming outdated.
Rather than viewing this disruption with apprehension, India must embrace it as an opportunity to lead. The challenge is not about continuing to provide services, but about reimagining them in light of new technological realities. This requires a radical rethink of the skills imparted to the country’s young workforce. It is no longer enough to master programming or maintain systems. Graduates must be trained in design thinking, problem-solving frameworks and systems-level innovation. They must learn to break down complex challenges, imagine solutions that can scale globally and adapt continuously as technologies evolve.
Equipping talent for this future demands deeper collaboration. Academia must align its curricula with emerging needs, while industry provides practical pathways for applying these skills. Government too has a role in incentivising innovation and ensuring broad-based access to training opportunities. Together, this ecosystem can prepare India’s youth not only to adapt to AI-led disruption but to define it.
The second bold shift involves moving from consumption to creation. For years, India has been recognised as the world’s back office, adept at supporting the largest global corporations with efficiency and scale. While this reputation has brought immense success, the time has come to redefine India’s role—not just as a support system, but as a brain trust where new ideas, products and intellectual property are born.
The significance of intellectual property cannot be overstated. Patents, digital platforms and proprietary technologies are the true currency of global innovation. They determine not only economic power but also technological leadership. For India to be seen as a global product nation, it must significantly increase the volume and quality of IP generated domestically.
The foundations are already strong. Over 2,700 Global Capability Centers (GCCs) operate in India, many of them driving innovation for the world. At companies such as SAP, for instance, nearly 40 percent of global R&D takes place in India, with a quarter of global patents originating from Indian operations. This demonstrates the scale of potential that already exists within the country.
In addition, India boasts the world’s third-largest startup ecosystem, a fertile ground for experimentation and entrepreneurship. Coupled with transformative public digital infrastructures like Aadhaar and India Stack, the nation has everything needed to foster innovation at scale. The challenge is to shift mindsets—from being satisfied with developing for others to creating, owning and scaling products that emerge from India.
This requires deliberate cultivation of a “product-first” culture. Entrepreneurs, researchers and corporations alike must prioritise ownership of innovation, ensuring that ideas are not only developed here but also retained, scaled and monetised globally. The opportunity is vast, but realising it will require ambition, investment and a long-term vision that extends beyond immediate service contracts.
The third essential shift is ensuring that technology acts as an equaliser rather than a divider. Artificial intelligence, like any powerful tool, has the potential to either bridge gaps or deepen divides. Used responsibly, AI can transform healthcare, education and financial services, particularly in underserved areas. Used irresponsibly, it risks excluding those who lack access, skills, or representation in its design.
For India, inclusivity is not optional; it is central to the vision of Viksit Bharat. The country’s diversity—linguistic, cultural and socioeconomic—demands technological solutions that are equitable and accessible. This means creating AI systems that work across India’s many languages, ensuring rural populations have the same access as urban centers and embedding fairness into algorithms so that societal biases are not replicated in digital systems.
Skilling once again becomes critical here. If rural communities, small entrepreneurs and disadvantaged groups are not equipped to use technology, the digital divide will only widen. Programs that expand AI literacy, provide affordable digital infrastructure and promote inclusive design must be scaled nationwide.
Equally important is a focus on responsible and ethical AI. The data that trains AI models must be diverse and representative. The outcomes of AI systems must be scrutinised to avoid perpetuating inequality. Transparency, accountability and fairness must guide every step of AI’s integration into society. Only then can technology serve as a genuine equaliser, advancing development across all sections of the population.
Underlying all these shifts is a single theme: boldness. History shows that the greatest transformations are driven not by incremental change but by courage—the courage to take risks, to question old models and to imagine new futures. For India, becoming a product nation is not a distant dream. It is an urgent responsibility.
The services legacy is a foundation, but it must be combined with bold innovation and inclusive growth. India has the talent, the scale and the ecosystem to succeed. What is needed now is the conviction to own its innovations, the determination to build intellectual property and the foresight to ensure that growth is both equitable and sustainable.
By embracing these shifts, India can do more than strengthen its economy. It can redefine its place in the world, shaping the digital products and platforms that will drive global progress in the decades ahead. The vision of Viksit Bharat 2047 is not merely about reaching developed-nation status; it is about becoming a nation that leads with innovation, inclusion and boldness. The journey ahead is challenging, but the opportunity is immense. With collective resolve and the courage to innovate, India can indeed transform itself into a global product innovation powerhouse—one that not only participates in the future but defines it.
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