Nasscom Chief: Double Tech Spend for AI

Nasscom's new Chairperson, Srikanth Velamakanni, is advocating for a significant increase in technology investment across India to prepare for the AI era. He stressed that Indian corporations should aim to nearly double their technology expenditure relative to their revenue, a move necessary to bridge the gap with the global average tech spend of 4.5% of GDP, compared to India's current 2.5%.

Velamakanni also called for a shift in perspective regarding AI's impact on employment, arguing that while human tasks might decrease, the demand for software will dramatically increase. He believes the world will require significantly more software than currently available. His priorities include fostering AI innovation and encouraging collaboration between industry players and the government on sovereign AI initiatives.

Looking ahead, Velamakanni anticipates a muted growth rate for the Indian tech industry in the upcoming fiscal year, with AI-led expansion expected to gain momentum in approximately 18 months. He advised aspiring professionals to build and release AI systems to develop a hireable skillset. He also noted that India lags in AI models and chip infrastructure, suggesting private companies raise capital and develop a risk appetite to compete globally.