Desi digital push puts India on tech power map
From defence to data analytics, investors bet big on firms riding India’s quest for technology independence amid global protectionism
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Bengaluru: Focus on Indian digital stack is creating increasing demand for technology-led services offered by companies that are aggressive on the Indian market. This is happening in sectors like defence, financial services, cybersecurity and enterprise software, in which the country is trying to be self-reliant through home-grown technology solutions, experts said.
Companies like Axiscades, Data Patterns, CEInfo Systems (MapMyIndia), Intellect Design Arena,defence PSUs and related stocks have seen an uptrend in the recent past as investors are anticipating growth acceleration in coming years as India revisits its earlier plans on technology collaboration in the wake of Trump administration’s policies. “Those companies, which are working on Indian (technology) stack, that is gaining traction in India. It is happening in defence, satellite technology, enterprise software and hardware space. As there is bullishness about India’s quest to pursue technology sovereignty in coming years, that is reflecting in their stock prices,” Pareekh Jain, an IT outsourcing advisor & founder of Pareekh Consulting, toldBizz Buzz.
He also said that companies,which are operating in the data analytics side, are witnessing the investors’ interest as these companies are likely to be benefitted from the current generative AI wave.
Recent protectionist measures adopted by the US under Trump administration has accelerated the need for India to be independent in critical technology areas. Similarly, trade restrictions on critical minerals imposed by the China have created significant uncertainty in semiconductor and electrical vehicle (EV) segments. Some instances this year has also exposed the vulnerabilities of Indian technology ecosystem. For instance, Microsoft halted its services for Nayara Energy in August this year after European Union imposed sanctions on the entity. Though operations resumed soon after, it sent shockwaves in Indian technology ecosystem owing to possibility of its repetition.
Since then, Indian government has been actively promoting home-grown technology players. Enterprise software provider, Zoho’s products are being adopted in several ministries of Indian government. Similarly, MapMyIndia’s satellite technology offerings are also being supported by the government.
“India is growing as a technology market. From fourth largest, India will soon be the third largest market globally. So, those players with specific India focus are expected to benefit from such shift,” Jain of Pareekh Consulting added.
Currently, several Indian IT services companies except TCS, are very less focussed on domestic market due to low margin environment. Interestingly, global IT firms like Accenture & IBM enjoy sound market shares in the country as compared to their Indian peers.
