India’s Information Technology and IT-enabled Services (IT-ITES) sector is being urged to pivot towards developing artificial intelligence-based sector-specific technologies, a move that could catalyze job creation and economic growth in the digital economy. On Monday, IT Secretary S Krishnan emphasized this strategic direction, highlighting the role that focused AI innovation can play in bolstering India’s digital ecosystem.
In an article titled “IT-ITES should explore building sectoral AI-based tech which will create new jobs: IT Secretary,” published by The Economic Times, Krishnan called upon technology companies and service providers to invest in AI applications tailored to verticals such as healthcare, agriculture, education, and manufacturing. By moving beyond generalized AI tools and fostering deep-tech solutions designed for specific industries, Krishnan believes the sector can unlock new employment avenues while addressing critical national priorities.
Speaking at an industry event, Krishnan underscored the opportunity for Indian IT firms to not only integrate AI into existing services but also to become global leaders in domain-specific AI solutions. “We should be able to produce AI-based technologies that are customized for various sectors. This will create jobs and also allow us to leverage our demographic dividend,” he stated.
The push comes amid a broader governmental focus on scaling India’s digital infrastructure and capabilities. With AI increasingly seen as a pivotal driver of economic transformation, there is a growing recognition that its development must be inclusive, innovation-led, and attuned to the unique challenges across different sectors of the economy.
Krishnan’s comments reflect the government’s dual aim: to anchor India’s digital ambition in global competitiveness and to ensure that the disruption brought by AI leads to net employment gains. The call to action for IT companies suggests a shift in policy emphasis—from deploying off-the-shelf AI platforms to building proprietary technologies that not only offer market differentiation but also contribute directly to solving emergent domestic and sectoral problems.
Industry leaders have largely welcomed the suggestion. Several firms are already piloting AI-based tools in areas such as precision agriculture, logistics optimization, and personalized healthcare. However, experts note that scaling these innovations will require significant investment in research and development, cross-sector collaboration, and the development of a skilled workforce capable of designing and managing sophisticated AI systems.
The IT Secretary also highlighted the importance of developing public digital infrastructure that lowers entry barriers for startups and smaller firms seeking to innovate in these areas. By creating an enabling environment through policy and infrastructure support, the government aims to stimulate a broader AI innovation ecosystem that reaches beyond the major urban centers.
With India poised to play a key role in the global digital economy, the direction outlined by Krishnan signals a strategic realignment for one of the country’s most dynamic sectors. As the IT-ITES industry responds to this call, its ability to build scalable, sectoral AI solutions could determine both its future growth trajectory and its contribution to inclusive economic development.
