India’s tech future lies in building, not just using global quality products: MeitY Secretary S. Krishnan

It’s been a significant week for IndiaAI, with companies like Anthropic setting up their India office in Bengaluru and Graphcore committing a billion pounds over the next decade. Google is also expected to announce a major investment soon. How do you assess all this activity?

What has been very significant and gratifying in the digital and technology space is the way everything is coming together. The India Mobile Congress looks at telecom and technology together. The Global Fintech Festival in Mumbai saw the finance world interact with technology.

We’re looking at two foundational horizontal technologies that overlay all this -- semiconductors (in both design and manufacturing) and artificial intelligence, which rides on data to make it more productive and efficient. This is a significant inflection point where convergence is taking place, and India is being recognised as a crucial player -- both as a powerhouse of talent that fuels innovation and as a market that can use technology for economic and social good.

Some say this is still a playbook adopted by Big Tech—that India remains a user base for global giants like Google, Meta, and X. What would you say to that?

We are an open economy, and global technology companies have always operated here. They’ve made a significant economic contribution through R&D, jobs, and opportunities. Their platforms have also helped others build businesses.

At the same time, we must be conscious that India should also be able to produce such products and services. MeitY has long championed India’s goal of becoming a product nation -- not just a software service provider. Whether in electronics or IT, our objective is to ensure that we develop world-class products. That includes social media platforms and productivity tools.

A good example is the NIC’s (National Informatics Centre) email system, which shifted to Zoho after a transparent tendering process. It’s been functioning effectively, and we’re happy with its performance. This shows that Indian companies can compete on quality and reliability.

We’re also seeing Indian startups offer alternatives -- messaging, conferencing, and productivity tools. Having choice is vital in the technology space, and MeitY will continue to support Indian options.

We’ve seen ministers use Zoho products publicly. Will there be a wider push across ministries?

Our push will be for Indian products broadly, not any one company. Zoho was selected through a transparent process and is offering NIC’s backend email services. We’re also in discussions with other Indian companies to see how their products can be scaled and enhanced to match global standards.

What other services can we expect the government to promote?

There are features offered by Big Tech that Indian equivalents are still developing. The key for these companies to succeed is broader market support. That’s growing naturally, and it’s a healthy trend.

Will this push for Indian products continue irrespective of geopolitics? Earlier pushes, such as post-TikTok, fizzled out when global relations improved.

Our goal is not about geopolitics -- it’s about competitiveness. We want globally competitive Indian products. We should never expect anyone to settle for subpar quality just because it’s Indian. In technology, being world-class is essential. MeitY will support all Indian companies that can match that standard.

Can you share an update on the Digital Personal Data Protection (DPDP) rules?

We met the deadline set by the minister—September 28—to send the rules out of MeitY after incorporating feedback. They’re now undergoing legal vetting, which must be done carefully to eliminate errors. We’re literally in the final lap.

And on ISM 2.0?

The Prime Minister has mentioned ISM 2.0. We’re already working on it seriously.

The Electronic Component Manufacturing Scheme (ECMS) received proposals worth Rs 1.2 lakh crore—double expectations. How will selection work?

We’ve made it clear -- those who implement fast will get the funds. Earlier, some got approvals and didn’t act. Now, implementation speed matters. We’ve begun vetting applications and will announce approvals progressively as proposals are finalised.

You mentioned selecting 12 companies to build foundation models under IndiaAI. One is expected by year-end—likely Sarvam. Are you satisfied with the progress?

Yes. Building models is challenging, but I must compliment our technologists, IITs, and institutions for coming together and, in some cases, turning down lucrative global offers to work for India. They’re doing a remarkable job, and we’re confident the targets will be met.

Is India late to the AI race, given our focus on the application layer?

Not necessarily. India’s strength lies in the application layer, and that’s where real opportunities exist. In some ways, being a little late helps us avoid mistakes others made and lets us focus on efficient use cases.

India’s talent often goes abroad -- like Aravind Srinivas of Perplexity or the Anthropic CTO from Bengaluru. Why aren’t we able to retain such talent?

This trend isn’t new or limited to AI. For decades, Indian talent has succeeded overseas. But that’s changing -- more people now believe in India’s potential. We’re already seeing talent return or stay back, helped by global collaborations and domestic opportunities.

Will the government make a conscious push to retain or attract talent?

Yes, absolutely. Through programs under the Anusandhan National Research Foundation (ANRF)
and other initiatives, we’re creating incentives to retain and bring back top talent.