India at 'decisive inflection point' due to AI, says Debjani Ghosh

Debjani Ghosh, a Distinguished Fellow at NITI Aayog and Former President of Nasscom, said India today stands at its most decisive inflection point, as technologies such as AI will require businesses to rewrite their models and platforms. AI, she said, is not a cyclical disruption but is a structural rewrite."Today, it stands at its most decisive inflection point as AI is not a cyclical disruption. It is a structural rewrite.... requiring business model shifts from effort-based billing to outcome-based value, from bespoke coding to productized platforms...and from back office to AI-native architect," she posted on X, after attending the launch of NITI Frontier Tech Hub's Roadmap on India's Technology Services.The technology-services industry has a peculiar distinction, she said, arguing that every few years, one thinks it is finished. "And, each time, the obituary was written early, the industry's capacity for reinvention proved to be its ultimate product," her X post read.For three decades, she said India's technology services industry has powered its global rise.NITI Aayog's Roadmap for Tech LeadershipOn the NITI Frontier Tech Hub initiative, she said it was developed through extensive consultation with industry leaders and experts and it lays out a forward-looking pathway for India to sustain and extend its global leadership.A Niti Aayog report noted that industry must lead the shift into the AI era by reimagining its delivery model, deepening innovation, and investing in the next wave of growth.Pivoting Business ModelsFirms need to pivot from cost-based services to outcome-driven, AI-enabled solutions, embedding 'human + agent + platform' models across operations.Focus on R&D and Strategic Partnerships"Strategic investment in R&D and IP creation, particularly in fast-growing areas such as healthcare, semiconductors, and cybersecurity, can unlock new value pools. Building global partnerships, scaling AI-focused mergers and acquisitions, and driving large-scale workforce reskilling will be critical to maintaining India's global edge and expanding its market share beyond 25 percent by 2035," Niti Aayog said.The Government's Role in a Tech-Led FutureIt added that government policy must enable this transition by strengthening innovation, talent, and ease of doing business. This includes scaling digital R&D and IP creation through a clear national digital R&D framework and shared infrastructure, simplifying and accelerating approvals through a National Tech-Services Single Window, and creating a supportive policy environment for SaaS and high-growth technology firms through capital-targeted R&D support, ESOP clarifications, and regulatory reforms."In parallel, a nationally coordinated AI talent mission will prepare India's talent base for AI-driven shifts. Together, these measures will position India as a preferred destination for global technology operations and investment," Niti Aayog said.Vision 2035: The Path to a $850B Tech IndustryTo align with the vision of Viksit Bharat@2047, the tech services sector needs to aim to achieve USD 750-850 billion in annual revenue by 2035 to sustain a 7-8 percent share of GDP and expand its global market share beyond 25 percent. However, the report indicates a USD 250-300 billion shortfall, underscoring the need for decisive action."Emerging technologies such as generative and agentic AI, cloud infrastructure, and digital engineering present India with a historic opportunity to bridge this gap and reposition itself as a leader in trusted, innovation-driven digital services," it suggested. (ANI)(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

India at 'decisive inflection point' due to AI, says Debjani Ghosh

Synopsis

NITI Aayog's Debjani Ghosh warns India is at a 'decisive inflection point,' calling AI a 'structural rewrite' that demands new business models. The tech industry must reinvent itself, shifting to outcome-based value and AI-native platforms.

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