'Sucked all the oxygen': Zoho’s Sridhar Vembu warns India’s IT dominance left key sectors gasping

India's economic rise has been fueled by its booming IT sector, driving exports, employment, and innovation. However, this overreliance on technology services has raised concerns about economic resilience, with shifts in global demand or financial disruptions posing potential risks.

Zoho founder Sridhar Vembu has sounded the alarm on this imbalance, warning that excessive focus on IT has led to the neglect of other critical industries. Comparing financial bubbles to “flash floods,” he explained, “When money pours into an industry too rapidly, it sucks resources and can leave us with fewer capabilities than before in other critical sectors that get neglected during the flood of money.”

Vembu argued that the dominance of IT has “sucked all the oxygen” from the economy, leaving industries like manufacturing and core engineering struggling for attention and investment. “We have to make up for lost time,” he urged.

His comments resonated with many online, sparking discussions about how India's talent and resources have been disproportionately funneled into IT. One user wrote, “There is not a single kid who wants to go for non-IT, hardcore branches of engineering unless they have no other options. The long-term damage to neglected manufacturing is real.”

Another echoed this sentiment, noting, “The current generation blindly jumps into CS courses or IT jobs, regardless of their major. As a result, we don’t even get enough candidates for non-IT roles.”

While India’s IT sector has undoubtedly propelled the country onto the global stage, the lack of diversification could hinder sustainable growth. Vembu’s warning underscores the need for policies that encourage investment and talent development in underfunded areas, ensuring a more balanced and resilient economy for the future.