NewKerala.com

India Must Pivot to IP-Led Tech to Capture $8.4 Trillion Global Market

A new BCG report states India's $300 billion tech sector must pivot towards intellectual property-led and platform-driven segments to capture more of the vast global technology opportunity. Currently, Indian IT services hold a strong market share, but the fastest-growing global value pools are in areas like cloud platforms and semiconductors. The report outlines imperatives including modernizing core services, making big bets in capital-intensive tech, and building adjacencies in AI and software. It calls for coordinated action on talent, capital, and policy to transition India from a participant to a shaper of the global tech economy.

Key Points: India's Tech Future: BCG Report Urges Shift to IP & Platforms

  • Shift from IT services to IP-led segments
  • Target $8.4 trillion global tech market
  • Invest in semiconductors and deep tech
  • Build AI and platform adjacencies
2 min read

India tech must shift to Intellectual Property-led and platform-driven segments to capture huge global opportunity: BCG report

BCG report says India's tech sector must focus on IP, deep tech, and platforms to capture a larger share of the $8.4 trillion global market.

"India is already a global technology powerhouse. - Rajiv Gupta, BCG"

New Delhi, February 26

India's technology sector, now a USD 300 billion industry contributing 7 per cent to national GDP, must pivot toward intellectual property-led and platform-driven segments to capture a greater share of the USD 8.4 trillion global technology market, according to a new Boston Consulting Group report.

India Tech Inc now generates over USD 200 billion in exports and employs nearly 5.8 million people, with Indian IT services firms commanding 15-17 per cent of the global IT consulting and services market. However, the report notes that IT-enabled services account for just 17 per cent of global tech revenues, while 83 per cent lies in faster-growing areas such as hyperscale cloud platforms, semiconductors, software, deep tech, and AI-first companies.

Titled India Tech's Next Innings: Signals, Shifts, and Considerations for India Tech, the report argues that the next decade's disproportionate value creation will emerge from capital-intensive, R&D-driven, and IP-led segments.

BCG also outlines three imperatives: modernise and move up the value chain in core IT services; make selective "big bets" in areas like semiconductors, data centres, cloud, and deep tech; and build adjacencies in AI-driven analytics, software, end-user devices, and India Stack-enabled platforms.

The report also calls for coordinated action across talent reskilling, commercialisation capabilities, structured global partnerships, patient capital for frontier innovation, and forward-looking policy frameworks.

"India is already a global technology powerhouse," said Rajiv Gupta, Managing Director and Senior Partner, BCG. "However, the fastest-growing value pools globally are in segments like Hyperscale cloud platforms, Semiconductor, Deep Tech innovation, AI-native offerings, many of which are expanding at 10-20% CAGR with strong valuation premiums. India has credible right-to-win positions in several of these arenas, and scaling participation here will be critical to the next phase of growth."

"India has largest base of tech talent, yet our global share of tech product revenues and IP ownership remains disproportionately low," added Shavi Gandhi, Partner at BCG. "If India doubles its R&D intensity and increases capital flows into deep tech by three to four times, we can move from being participants in the global technology economy to shaping its direction."

- ANI

Share this article:

Reader Comments

S
Sarah B
As someone working in a Bengaluru startup, this resonates deeply. The shift from services to products is painful but essential. We need more patient investors who understand deep tech, not just quick commerce apps.
R
Rohit P
Absolutely correct. Look at UPI and India Stack - that's the model. We built a world-class platform here. Now we need to do the same in semiconductors, cloud, and AI. Government and private sector must join hands.
P
Priya S
The focus on reskilling is key. My husband's IT job feels stagnant. We need massive training programs in AI, cloud architecture, and semiconductor design. Otherwise, this "pivot" will leave millions behind.
M
Michael C
A very insightful report. The numbers don't lie - 83% of the market is in high-value segments where India has minimal presence. The "big bets" on semiconductors and data centers are crucial for strategic autonomy too.
K
Karthik V
With all due respect to BCG, reports like this come every few years. The real issue is our education system still produces rote learners, not innovators. Until that changes, we'll keep playing catch-up. We need a foundational shift.
A
Ananya R
Hope our startups are listening! Too many

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50