PM to IT firms: Go beyond services, make AI products

NEW DELHI: PM Narendra Modi on Tuesday called upon the Indian IT sector to lead not just in service delivery but in building AI products, platforms and solutions that work for India and the world.

"India's IT sector has been the backbone of our services exports and a key driver of economic growth. AI presents both a tremendous opportunity and a challenge for this sector... The fundamental shift is that AI isn't replacing the IT sector. It is transforming it," he told ANI.




PM Narendra Modi said, "While general-purpose AI tools have become widespread, enterprise-grade AI adoption is concentrated in specific sectors. Incumbent IT firms continue to play crucial roles in solving complex business problems."

Many saw the PM's remarks as nudging Indian software service players to develop new capabilities and work on products and platforms - something that many Indian IT companies are not known for despite sitting on large cash piles. Global tech giants are also facing challenges from AInative companies such as OpenAI and Anthropic.

Modi said India must not only be a technology consumer but a creator too, a foundational pillar of the 'Atmanirbhar Bharat' principle. "My vision is that India should be among the top three AI superpowers globally, not just in AI consumption but in creation. Our AI models will be deployed worldwide, serving billions in their native languages. Our AI startups will be valued in hundreds of billions, creating millions of high-quality jobs," the PM said.

The PM also sought to address concerns over the impact of AI on jobs, vowing to arm the youth with requisite skills. "I understand the concern of our youth about AI-driven disruptions in the job market. Preparation is the best antidote to fear. That is why we have been investing in skilling and re-skilling our people for an AI-driven future... We're not approaching this as a future problem but we're treating it as a present imperative," he said.

"History has shown that work does not disappear due to technology. Its nature changes and new types of jobs are created. While some jobs may be redefined, digital transformation will also add new tech jobs to India's economy. History teaches us that whenever innovation happens, new opportunities emerge. The same will be true in the age of AI," Modi said.
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