Ajai Chowdhry, one of the founding members of Hindustan Computers Limited, has suggested that the Indian government implement a strategy of “demand aggregation” to develop strong, globally competitive Indian tech and manufacturing companies. Chowdhry cites the example of Chinese company Huawei, which was awarded all of China’s domestic telecom business, giving it a guaranteed foothold and driving its global scale. He proposes that the Indian government aggregate all its demand for a particular sector, such as telecom and networking hardware, and award it to Indian companies, allowing them to scale and become big in India.
Chowdhry emphasizes the importance of becoming a “product nation” from a services-based economy, stating that 60% of the Indian economy comes from services, which is “dangerous” as it leaves the economy vulnerable to global market shifts. He suggests that India should focus on developing technology- and product-driven products, including semiconductors, drones, electric vehicles, and other electronics. Chowdhry also clarifies that the ‘Make in India’ campaign means to both design and manufacture in India, rather than just manufacturing.
According to Chowdhry, the Chinese government’s support for Huawei, including providing credit to African countries to buy Huawei products, helped the company expand globally. He suggests that the Indian government can take a similar approach by providing large-scale orders to capable Indian firms, allowing them to scale and become big in India. Once they become big in India, they can then expand abroad, creating opportunities for India to become a product nation.
Chowdhry’s proposal involves selecting three or four Indian companies and giving them government business, allowing them to scale and become big in India. He believes that this approach can help India develop strong, globally competitive tech and manufacturing companies, and reduce its reliance on services. By focusing on designing and manufacturing products in India, the country can utilize its design capability and create a more stable economy. Overall, Chowdhry’s suggestion emphasizes the need for the Indian government to support Indian companies and help them scale, in order to create a strong and competitive tech and manufacturing industry.