Speaking to CNBC-TV18, Vembu said that while GCCs have brought in jobs and investment, the IP created using Indian talent is often owned and taxed abroad, leaving little long-term value within the country.
“GCCs build IP in India using Indian engineers, but that IP is registered elsewhere. We must ensure that what’s developed here benefits India — that it’s owned, taxed, and accessible here,” he said. “Otherwise, we risk technology being weaponised against us.”
Vembu added that India’s massive talent pool is the primary reason global giants set up these centers, and stricter IP rules would not deter investment. “If we set firm, fair terms, companies will adapt,” he said, urging policymakers to ensure India retains the benefits of the innovation being created on its soil.
Over the past few years, India has become the world’s leading destination for GCCs, hosting more than 1,600 such centres that employ over 1.6 million professionals. These hubs support everything from software development to AI research for firms like Google, Amazon, and JPMorgan.
But Vembu believes India’s openness must be balanced with strategic self-reliance. “We should remain an open market but also build strong domestic technological foundations so we can trade on equal terms,” he said.
The Zoho founder—who has long advocated for Swadeshi or self-reliant technology—said the time has come for India to think beyond service exports and invest in local product innovation and IP creation.
“Moving from a services nation to a product nation is a 10–15-year journey,” he said. “The best time to start was 40 years ago; the next best time is now.”
