'Despite UPI and startups...': Sridhar Vembu warns India’s tech talent is leaving, urges private sector to act boldly

India has steadily emerged as a global hub for innovation, propelled by a vibrant startup culture and a deep reservoir of STEM talent. With breakthroughs in fintech, pharma, and space tech, the country has proven its potential to scale world-class solutions. But as India rises on global innovation charts, industry veterans like Sridhar Vembu say it’s time to get more ambitious — and more honest — about where the country truly stands.

Sridhar Vembu, founder and former CEO of Zoho Corporation, is calling for a sharper, more deliberate focus on innovation in India — especially from the private sector. In a recent post on X (formerly Twitter), Vembu laid out his assessment of India's innovation ecosystem across four distinct categories: process, product, technology, and scientific breakthroughs.

“Here is how I assess our nation's capabilities in terms of innovation,” he wrote, assigning scores and suggestions in a candid self-evaluation.

For process innovation, Vembu rated India at 70%, citing world-class performance in sectors like airlines, hospitals, retail, and financial services. “We have to adopt process innovations in smaller and mid-sized companies,” he noted.

But the score drops sharply when it comes to product innovation, which he pegged at just 35%. “That might even be optimistic,” he admitted. While innovations like UPI show what’s possible, he emphasized the need for more visionary product creators: “Our industry needs product people… in addition to effective project managers.”

On technology innovation, Vembu offered no score — just a challenge. India exports much of its tech talent, he said, and retaining or bringing them back requires creating ambitious opportunities. “This has to be a major focus for our private sector.”

As for scientific breakthroughs, Vembu was blunt: “We haven’t even appeared for the exam here.” He argued that while private enterprise must lead the first three fronts, it’s the government that must fund deep science. “Technological innovations follow scientific breakthroughs, often with very long lags,” he wrote. “We need the equivalent of Bell Labs in the private sector.”