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Volume III: Capturing key themes that emerged in the Indian tech space during the past two weeks
Volume III: Capturing key themes that emerged in the Indian tech space during the past two weeks

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The past two weeks were marked by state governments strengthening commitments to establish tech hubs in their regions; Google ushering in an industry-first move by allowing data localization, and various collaborations in artificial intelligence (AI), Gen AI, cybersecurity and startup domains.

A look at the key themes that emerged during the period…

State governments take the lead in developing tech hubs

Several state governments announced initiatives to strengthen the tech ecosystem in their respective regions. Notably, the government of Uttar Pradesh issued an order granting “Industry” status to the IT and ITES sector, extending several benefits to the sector to boost growth and investment. The new policy is part of a broader government strategy to provide enhanced facilities, including uninterrupted power supply, high-speed internet connectivity and access to specialised IT parks to the sector. 

Further, the government of Telangana announced the setting up of an ‘AI city’ spread over 200 acres near the international airport on the outskirts of Hyderabad. The city would aim to attract and encourage companies involved in the development of AI and disruptive innovation.

Meanwhile, the government of Bihar signed a memorandum of understanding (MoU) with nasscom to promote the state’s new IT policy. The government will leverage nasscom’s partnership to organize roadshows in Bengaluru, Chennai, Mumbai, Hyderabad and Pune. These roadshows aim to facilitate linking Bihar government officials with potential investors and technology companies, increasing the potential for investment in the state.

The Andhra Pradesh government announced that it is developing an IT policy focused on Tier II cities. As per the government, this is essential to achieve its goal of creating 500,000 jobs in the next five years.  

Google ushering in data localization and other moves in AI and Gen AI domain

In a key move to enable data localization, Google stated that Indian organizations across all sectors, including the public sector, will now have the option to both store their data at rest and conduct machine learning processing entirely within India due to Google’s Gemini 1.5 flash LLM. For enterprises in the public and financial services sector, this would mean enhanced security owing to the sensitive nature of data they handle. Further, local data storage and processing under Gemini 1.5 flash will benefit startups by reducing costs of using the models and improving latency in some sectors.

Two key partnerships were also forged. One, PwC collaborated with Meta to expand and scale its open-source AI solutions for enterprises and citizen services using Meta's Llama models. Through the collaboration PwC India and Meta aim to democratise Generative AI (GenAI) and make it more accessible to businesses by jointly building and deploying enterprise-grade and citizen-service GenAI solutions.

Secondly, Infosys partnered with Microsoft to accelerate industry-wide adoption of GenAI.  The two companies will jointly develop industry leading solutions that leverage Infosys Topaz, Azure OpenAI Service and Azure Cognitive Services.  

Collaborations to strengthen cybersecurity awareness and startup growth

In the cybersecurity domain, InMobi and Data Security Council of India (DSCI) signed a memorandum of understanding (MoU) to enhance cybersecurity awareness, capacity building, skilling and upskilling initiatives across India. Through the MoU, both organizations aim to empower individuals, businesses and institutions with the knowledge and skills necessary to safeguard against cybersecurity threats.  

To help scale startups through e-commerce, Amazon India partnered with Startup India, under the aegis of the Department for Promotion of Industry and Internal Trade (DPIIT). Using a dedicated page on the Startup India portal, the e-commerce firm and Startup India will work together to allow eligible startups to make use of e-commerce opportunities by registering on Amazon India's marketplace. The collaboration will enable startups to gain access to the domestic market, mentorship from Amazon leaders, go-to-market support and logistics guidance.

Private sector initiatives to deepen presence in India

Key private companies also strengthened their presence in India. To this end, global tech giant, Cognizant, announced its plans to establish a ‘techfin’ centre at Gujarat International Finance Tec-City (GIFT City), Gandhinagar. The new facility, set to launch in February 2025, will serve as a strategic hub for delivering advanced technology solutions for clients in the banking, financial services, and insurance (BFSI) vertical. The centre will initially house 500 associates, which will be scaled up to 2,000 employees over the next three years.

Further, TCS finalised plans to set up an IT facility in Vishakhapatnam that will house upto 10,000 employees. Meanwhile, UST announced plans to expand presence in India by adding over 3,000 jobs over the next five years. The jobs will be added at its upcoming Kochi campus, which is expected to become operational by December 2027.  

In sum

Overall, the past two weeks witnessed varied trends that showcase both the public and private sector’s commitment to strengthen the tech ecosystem in India. State governments seem to be actively involved in scaling up the incentives they offer to tech companies in a bid to attract investments and drive employment. Among private sector companies, Google’s move to usher in local data processing, an industry-first, stands out. With the central government’s push for data localization, it comes at the right time and would lead other tech giants to follow suit. Moreover, Cognizant, TCS and UST’s commitments to scale up presence in GIFT City, Vishakhapatnam, and Kochi signal how tech companies are now going beyond the conventional tech destinations and diversifying their presence in India.


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Kuhu Singh
Manager, Research

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