Zoho Corporation founder Sridhar Vembu is the talk of the town. This time for raising his voice over what he terms “brain harvesting” by foreign multinational corporations operating in India. In a post on ‘X’ , Vembu called for urgent policy reforms to ensure that intellectual property (IP) generated within the country benefits India, rather than being transferred and monetized abroad.
India’s Talent, Global Profits
Sridhar Vembu’s primary concern revolves around the current model where India’s highly skilled workforce particularly in the AI and deep tech sectors, creates innovations while working for Global Capability Centers (GCCs) of international companies. These innovations are although developed on Indian soil by Indian professionals. Yet they often have their IP registered in foreign jurisdictions, especially the United States.
A Push for IP Law Reforms
To address this imbalance, Sridhar Vembu proposes that the government makes laws that mandate that IP developed within the country must either be registered locally or licensed under Indian law. This would ensure that Intellectual Property generated is taxed and monetized in India, rather than benefitting foreign governments and corporations.
GCCs: Opportunity or Exploitation?
India currently hosts over 1,600 Global Capability Centers, employing more than 1.6 million professionals. These centers are projected to employ over 2.1 million by 2025 and play a major role in global R&D and AI development. However, Sridhar Vembu cautions that if the current migration continues unchecked, India may miss out on the strategic and financial benefits tied to its own innovation output.
Building Swadeshi Tech
This call aligns with his long-standing vision for “Swadeshi Tech”. This is a movement focused on strengthening India’s domestic technological capabilities. By keeping control of IP and investing in local innovation, since he believes India can rise as a true technology leader on the global stage.