AI is not a disruption, but a structural rewrite: Debjani Ghosh, a fellow at NITI Ayog
AI Is a ‘Structural Rewrite’, Says Debjani Ghosh; Calls for Outcome-Based Shift in Tech Services
New Delhi: Debjani Ghosh, Distinguished Fellow at NITI Aayog and former president of NASSCOM, said India’s technology services industry stands at its most decisive inflection point as artificial intelligence (AI) reshapes business fundamentals.
In a post on X after attending the launch of the NITI Frontier Tech Hub’s roadmap on India’s technology services, Ghosh said AI is not a temporary or cyclical disruption but a structural transformation.
“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 productised platforms, and from back office to AI-native architect,” she wrote.
Reinvention as the Industry’s Core Strength
Ghosh noted that India’s technology services sector has repeatedly been written off over the decades, only to reinvent itself stronger each time.
“The industry has a peculiar distinction — 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,” she said.
For more than 30 years, India’s tech services industry has powered the country’s global economic rise, she added.
Roadmap for the AI Era
A report released by NITI Aayog under the Frontier Tech Hub initiative emphasised that the industry must lead the shift into the AI era by reimagining delivery models, deepening innovation and investing in new growth engines.
It called for firms to pivot from cost-based services to outcome-driven, AI-enabled solutions by embedding “human + agent + platform” operating models across enterprises.
The report highlighted the need for strategic investments in research and development (R&D) and intellectual property (IP) creation, especially in high-growth sectors such as healthcare, semiconductors and cybersecurity. It also underscored the importance of global partnerships, AI-focused mergers and acquisitions, and large-scale workforce reskilling to help India expand its global market share beyond 25% by 2035.
Policy Support and Talent Mission
NITI Aayog said government policy must facilitate this transition by strengthening innovation ecosystems, talent pipelines and ease of doing business. Proposed measures include:
A clear national digital R&D framework and shared infrastructure
A National Tech-Services Single Window to simplify and accelerate approvals
Targeted R&D support and regulatory clarity for SaaS and high-growth tech firms
ESOP clarifications and broader regulatory reforms
The report also recommended launching a nationally coordinated AI talent mission to prepare India’s workforce for AI-driven shifts.
Ambitious Growth Target
Aligned with the vision of Viksit Bharat@2047, the tech services sector is expected to aim for $750–850 billion in annual revenue by 2035, sustaining a 7–8% share of GDP and expanding global market share beyond 25%.
However, the report identified a potential $250–300 billion shortfall under current trajectories, stressing the need for urgent and 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,” the report said.
