India pushes IT-ITeS sector-focused AI to boost jobs, IT exports
NOIDA, INDIA — India is calling on its IT and IT-enabled services (ITeS) industry to focus on sector-specific artificial intelligence (AI) solutions that can create new jobs and drive economic growth.
According to a report from ET HRWorld, electronics and IT Secretary S Krishnan highlighted that while India may lag in developing massive AI models, it has an opportunity to lead in practical AI adoption that benefits the broader economy.
A pathway to job creation
“You don’t need very large elements. What you perhaps need are sector-specific, purpose-built, limited models which apply to that sector and are able to solve issues and provide the critical solutions related to that sector. That is the direction in which we would expect India’s large software industry, IT-ITes industry, to go in the days to come,” Krishnan said, speaking at a conference organized by the National Institute for Smart Government (NISG).
He described this moment as like a Y2K moment for the Indian IT industry, emphasizing that the focus should not be on potential job losses, but rather on the “newer kind of jobs which get created.”
Krishnan underscored the importance of viewing AI as a tool that can deliver positive outcomes, echoing Prime Minister Narendra Modi’s vision of AI as a technology “which yields a lot of possibilities.”
Digital public infrastructure goes global
Krishnan also highlighted the strategic role of India’s digital public infrastructure (DPI), including platforms like Aadhaar, UPI, and CoWIN, which have already been adopted by other countries.
“The Ministry of External Affairs is looking at technology-based diplomacy as the next real tool for India to make its mark, particularly in the global south,” he said.
To support these ambitions, MeitY has sanctioned the establishment of an international center for DPI innovation at NISG, aimed at studying global deployment trends and enabling India to expand its technology influence abroad.
NISG, Krishnan said, should aspire to be the government’s own strategic partner of choice when it comes to leveraging and using technology in different spheres of governance, not just in India, but even overseas.
New plays for outsourcing providers
Krishnan’s remarks signal a clear pivot for the Indian IT outsourcing industry from traditional service delivery toward high-value, AI-driven solutions tailored for specific sectors.
By building specialized AI models, Indian IT companies can unlock new revenue streams and create skilled employment, both domestically and globally.
Moreover, leveraging DPI technology for international projects positions India as a thought leader in digital governance, further cementing its reputation in the global outsourcing landscape.
