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Volume II - The Week in Rewind: 5 Key Developments in the Indian Tech Domain
Volume II - The Week in Rewind: 5 Key Developments in the Indian Tech Domain

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The tech sector was abuzz with activity during the past week. The Prime Minister’s three-day visit to the US, marked renewed commitments by tech giants like Google and Nvidia to invest in the Indian market. Further, India-Saudi Arabia strengthened their collaboration by creating a $2 billion fund to encourage startups. On the state government front, Karnataka announcing India’s first draft global capability centre (GCC) policy, remained the most significant move.

A look at 5 the key developments that occurred during the past week….

Tech companies strengthen commitments to invest in India

During the Prime Minister’s three-day visit to the US, tech giants including Google and Nvidia expressed their willingness to strengthen commitments for enhancing artificial intelligence (AI) investments in India. Nvidia has recently partnered with Yotta Data Services that plans to scale up its graphic processing unit (GPU) stable to 32,768 units by the end of 2025. Further, Google stated it will now consider applications in healthcare, education, agriculture etc and build AI applications that can benefit the Indian population.

India-Saudi Arabia create $2 billion fund to boost startups

In another key move, India and Saudi Arabia created over a $2 billion fund to boost innovation and startups, with a focus on strategic sectors. The fund called the Saudi Arabia-India Cooperation Fund (SAICF) is modelled after the UK-India Development Cooperation Fund. Earlier, in August 2024, India had released a blueprint for the SAICF, starting with a $500 million Fund of Funds (FOF), a pooled investment fund where both governments will invest in an agreed proportion. The FOF would then invest an average of $20-25 million in daughter funds, which, in turn, would invest in 15 to 25 startups and growth companies. The key strategic focus areas would be innovation, climate tech, clean energy, defence and space tech etc.

State governments step up efforts in the GCC domain

The most significant development among Indian states remained the launch of India’s first draft GCC policy by Karnataka. The policy lays out the state government’s ambitious plan to create 500 new GCCs in the state by 2029 and create 3,50,000 new jobs. Some key incentives laid out in the policy include reimbursements on office rents and patent fees, along with exemptions from electricity duties.

Further, the government of West Bengal announced that it has earmarked land for the establishment of a GCC in the semiconductor industry. Discussions in this regard were held during the week with the US Consul General.

Infosys and Tech Mahindra foster collaborations to drive innovation

Notable collaborations during the week remained Infosys collaborating with Swedish electric performance car brand, Polestar, to establish a global technology hub for the latter at its development centre in Bengaluru. The hub aims to deliver electric vehicle (EV) software development and validation across many domains, including infotainment, advanced driver assistance systems (ADAS), and telematics for Polestar.

Further, Tech Mahindra inked a pact with New Zealand's University of Auckland (UoA) to drive research and innovation in AI, machine learning (ML) and quantum computing. The collaboration will enhance the cooperation between industry and academia, with the goal of improving UoA graduates' employability. Through the partnership, the two parties will introduce Gen AI and its benefits to indigenous communities and offer internships at Tech Mahindra, providing potential candidates with the opportunity to learn AI, ML, and other emerging technologies.

HCLTech achieves 25% reduction in Scope 1 and 2 emissions

In line with its goal to attain net-zero emissions by 2040, HCLTech announced that it had achieved a 25% reduction in Scope 1 and 2 emissions from FY20 baseline. In addition, the company achieved a 29% reduction in Scope 3 emissions (from FY20 baseline). In India, HCLTech replenished 32X water it consumed across its India operations. Further, almost 98% of the company-owned buildings earned ‘Platinum’ ratings from Green Building Councils and the company planted 2.1 million saplings and harvested 81 billion litres of water to support communities and the environment.

 

 

 


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Kuhu Singh
Manager, Research

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