New PPP models
The global talent war is intensifying, with global corporations actively hiring top talent from India.
R&D
Investments in R&D in India have
historically been low.
 |
From $190-200Bn in 2021 to
~$500 Bn IT services revenue by 2030 |
 |
8-10%
YoY Growth in IT Services (vs. 3-4% globally) |
 |
From 26% in 2021 to
~100% Digitally skilled employees by 2030 |
 |
From $2-3Bn in 2021 to
$50-70Bn SaaS revenues by 2030 (4-6% of global share vs. 1% currently) |
 |
From ~19% in 2021
#1 Global leader in Cloud, AI, IoT and cybersecurity |
|
Top
Ranking destination for incorporating SaaS startups |
Indian Inc. could work to link curriculum to industry-demanded skills (e.g., infra management, testing, and design engineering) and offer apprenticeship through gamified/live projects and internship programs to enhance employability of existing STEM graduates and expand India's tech pool.
Key actors: Large IT services players, digital native and SaaS companies, in collaboration with state universities and boards (e.g., CBSE, JAC) and skill development institutions (e.g., KSDC, OSDA)
Indian tech players could help develop consistent industry-wise digital skill taxonomy and curate specialized trainings and certification programs to scale-up upskilling and reskilling of employees with the aim of reaching 100% digitally skilled talent by 2030. Skilling efforts could focus on Horizon 1 and 2 tech and SaaS.
Key actors: IT/ITES/SaaS players, industry bodies (e.g., NASSCOM, SaaSBoomi), universities, and foreign institutions
Leading industry players could help increase the number of large SaaS companies by 10x by partnering with them to jointly develop offerings, providing access to end customers in target segments, and helping build go-to-market and sales engines in international markets.
Key actors: Large industry players
Software players could accelerate the adoption of emerging delivery models and tools (e.g., software 2.0, low-code/no-code, AI-based code reviews and defect prediction, DevSecOps, and software craftsmanship) and double or triple their investments in building "productized" offerings, assets, and platforms (in line with digital specialists). This could enable innovation for end clients, drive standardization, improve quality, and reduce time-to-market.
Key actors: Software players
Various industry stakeholders could collaborate to raise India’s profile on innovation by hosting conferences, industry meetings, and roadshows at a global scale (like CES, SXSW and London’s Global IoT Technology Expo). They could also seek government's help to develop two or three domestic success stories across cloud, AI, IoT and cybersecurity as World Economic Forum lighthouse projects.
Key actors: Large industry players
The industry could co-lead the establishment of pan-India innovation clusters, which could be supported by enabling infrastructure, testing / prototyping labs, startup incubation funds, and talent skilling programs. These clusters could focus on addressing market demand in India for new technologies, developing indigenous hardware and products, building use cases relevant for the public sector, etc.
Key actors: Industry players and industry bodies in collaboration with central/state bodies (e.g., National Innovation Foundation), academia, and investors
The government could help India become a leading R&D hub by introducing supportive policies (super income tax deduction, subsidized GST on inputs, etc.), establishing grants to scale up availability of skilled talent, streamlining IP protection laws, and creating enabling infrastructure (e.g., prototyping labs).
The government could help expand the domestic market for Indian SaaS startups by introducing focused challenges to further develop the "India stack" and launching awareness, skilling and digital training programs and incentive schemes.
Key actors: MeitY, Ministry of Micro, Small and Medium Enterprises and other central government bodies
Private sector participation can be boosted by creating a regulatory sandbox for testing innovative PPP models (e.g., allowing open access on select railway segments and deploying hybrid-till airport model in other sectors), setting up independent regulators in key sectors (for e.g., road, rail, metro, and urban infrastructure), adopting new financing mechanisms (InvITs, TOT, HAM, corporate bonds, IPO, etc.), and incorporating more balanced risks and rewards PPP frameworks.
The government could help India become a leading R&D hub by introducing supportive policies (super income tax deduction, subsidized GST on inputs, etc.), establishing grants to scale up availability of skilled talent, streamlining IP protection laws, and creating enabling infrastructure (e.g., prototyping labs).
India could establish a central agency to help ULBs with project structuring and to provide payment guarantees on their behalf. The agency could also help state government raise funds, especially via partnerships with multilateral agencies.
It could be partly funded through ringfencing allocations from various central schemes, such as Smart Cities, PMAY, AMRUT, and Jal Jeevan Mission.
