Can India's 30-Year-Old IT Backbone Build a Global AI Powerhouse?
Google's recent report reveals that AI could unlock $400 billion in economic value for India by 2030. In 1954, Prime Minister Nehru tasked P.C. Mahalanobis, founder of the Indian Statistical Institute (ISI), with drafting the second Five-Year Plan. This plan emphasised data collection and computation, leading to the establishment of ISI’s electronic computation laboratory. The journey of India’s IT industry began not in the 1980s but here.
The Early Beginnings
By 1955, Mahalanobis had imported India’s first digital computer, the HEC-2M, from England. This pioneering step laid the foundation for computational progress. Around the same time, in Mumbai, Homi Jehangir Bhabha led efforts at the Tata Institute of Fundamental Research (TIFR). By 1960, TIFR had developed its computer, the TIFRAC, which Prime Minister Nehru inaugurated in 1962. This marked India’s first significant in-house computational achievement.
The Emergence of IT Companies
The 1960s saw the birth of corporate computer services. Lalit Kanodia advised Tata Sons to set up a data processing centre, leading to the birth of Tata Consultancy Services (TCS) in 1968. In the 1970s, the Sondhi Committee recommendations and policy changes encouraged the growth of the IT industry in India.
Rise of Indian IT Giants
Companies like TCS, Infosys, HCL, and Wipro emerged in the 1980s. They leveraged policies and strategic moves to lay the groundwork for future growth. By the late 1980s, TCS had executed groundbreaking projects, and Infosys was founded with a vision to create jobs through entrepreneurship.
The IT Boom
The 1990s marked a turning point for India’s IT industry, with the liberalisation of the economy. Companies like Infosys excelled in talent management, adopting innovative models like the Global Delivery Model (GDM). The Y2K crisis further propelled Indian IT firms onto the global stage, showcasing their capabilities on a larger scale.
The Era of Analytics and AI
The turn of the century witnessed the rise of Web 2.0 and a surge in data generation. Companies like Fractal Analytics and Mu Sigma recognised the potential of analytics and AI, paving the way for data-driven decision-making. These firms positioned themselves as strategic partners, driving growth in sectors like finance, pharmaceuticals, and retail.
Both firms expanded globally and established themselves as leaders in data analytics and science. As India's IT backbone continues to evolve, the question remains - can it transition into a global AI powerhouse?
