India's Innovation Paradox

While today’s frenzy is all about the new tax regime for 2025 and its benefits, I’ve chosen to focus on something different. After reading through the Economic Survey Report 2025, I find it crucial to put another topic at the forefront—something that speaks to the future of India's growth, innovation, and our role in shaping it.

Sometimes, I think we, as Indians, haven’t fully shaken off the old mindset of being just a service provider. Sure, outsourcing put us on the global map, but it also became our identity—the box we were placed in and often settled for, out of convenience or a misplaced desire to please. Too often, we find ourselves settling for flattery in the hopes of pleasing others, falling into a ‘servant mode,’ driven by self-serving motivations. It’s a limiting belief we’ve allowed to linger for too long, forgetting that we are the ones shaping the global narrative.

Let's take a step back. India—the land that invented zero, shaped the foundation of mathematics, and produced some of the oldest universities like Nalanda and Takshashila, which were once the global centers of learning and innovation. Historically, we’ve been innovators, thinkers, and leaders in intellectual pursuits. Fast forward to today, we’ve got Indians at the helm of Microsoft, Google, Micron, and a host of other global organizations shaping the future of technology and business.

Yet, despite this rich legacy, there's still a tendency to see India as just a low-cost destination for services—a perception we need to break. While cost arbitrage remains a driving factor for setting up Global Capability Centres (GCCs) in India, the narrative has shifted. We are no longer just providing back-end support. We’re capable of leading, innovating, and driving change.

This is where the Economic Survey 2024-25 adds depth to the conversation.

? India’s GCCs now employ nearly 1.9 million professionals as of FY24. And the number of GCCs has risen from 1,430 in FY19 to over 1,700 in FY24, signaling the growing confidence global companies have in India’s potential.

? The global roles within these GCCs are expected to grow four-fold, from 6,500 today to 30,000 by 2030, as India steps into roles that demand high-end engineering and leadership, including product managers and architects.

? India is home to 28% of the global STEM talent and 23% of the global software engineering talent, cementing its position as a true leader in innovation and tech.

The Role of MDs and Site Leaders in GCCs:

This means the responsibility for shaping India’s future in global business does not lie solely with the government or policymakers. It rests on the shoulders of those who occupy corner offices in GCCs and global organizations. MDs, India site leaders—you are in the driver’s seat. You are the ones who must redefine India’s role on the global stage, to pitch for what India can truly do—not just as a support hub, but as a center for groundbreaking research, innovation, and product development.

Instead of simply managing offshore operations, be the ones who bring R&D and innovation to India. Every time you sit at a global strategy table, ask yourself—are you justifying the "India = cost arbitrage" mindset, or are you selling India as a powerhouse of innovation?

Who Is Truly Risk-Averse?

A common misconception I keep hearing is that women don’t reach top leadership roles because they are risk-averse. I don’t believe that. Look at Dr. Lisa Su, the CEO of AMD. She took over a loss-making company and turned it into a semiconductor giant, making it one of the most successful turnarounds in tech history. That is not risk aversion—that is bold, strategic leadership.

But if we are talking about real risk aversion, let’s look at venture capitalists in India. I was speaking with a friend yesterday who is building a product company, and he mentioned that Jeff Bezos once pointed out how the seed funding ecosystem in the U.S. is fundamentally different. Investors there understand that even if one in ten startups succeeds, it’s a game-changer. They bet on big, disruptive ideas and are willing to take calculated risks.

Here, in India, the mindset is often different. Investors hesitate unless there’s an immediate, guaranteed return. Instead of betting on long-term innovation, they often look at short-term gains—again, a self-serving approach rather than a visionary one. And let’s not forget the IIT bias—if a startup founder doesn’t have an IIT tag, their credibility is questioned. But great ideas can come from anywhere, not just from IITs.

If we want India to truly become a global innovation hub, this must change. It’s time for investors to take bold bets, encourage product innovation, and back founders beyond just credentials.

India’s Moment Is Now

We are at a pivotal moment. The world is watching us. The growth of GCCs, the rise of Indian leaders on the global stage, and our dominance in STEM fields—all of these signal that India’s time has come. But it is up to us to shape the next chapter.

• MDs and site leaders: Push for R&D and innovation, not just execution.
• VCs and private equity: Bet on long-term innovation, not just immediate returns.
• Investors: Stop looking for safe bets and start building the next global giants.
• Every professional: The way you represent India matters—don’t just manage; lead, innovate, and transform.

Let’s not settle for flattery, let’s not operate with self-serving interests, and let’s stop seeing ourselves as service providers. It is our responsibility to narrate a different pitch for India—one of leadership, innovation, and global influence.

Maybe, just maybe, the alternative to making India a global powerhouse isn’t in working 70 to 90 hours a week, but in embracing a courageous and innovative mindset. And this isn’t just the responsibility of policymakers, MDs, or site leaders—it’s on each one of us, as professionals and as a community, to reshape the narrative and drive meaningful change. After all, ‘When the winds of change blow, some build walls, others build windmills.’ Which one will we choose?