"Despite UPI Success, Our Talent Is Leaving": Sridhar Vembu's Warning On India's Tech Future

India may be riding high on its startup boom and fintech success stories like UPI, but Zoho founder Sridhar Vembu says the country needs a serious reality check - especially if it hopes to keep its best tech minds from heading abroad.

In a candid post on X, the tech entrepreneur urged India's private sector to "act boldly" and focus on building real innovation at home. "Our talent is leaving," Vembu warned, pointing out that while India shines in process-driven sectors like airlines, banking, and retail, it lags when it comes to creating world-class products and cutting-edge technologies.

Breaking down his assessment, Vembu said India scores well, about 70%, in process innovation. But when it comes to product innovation, he rated it at just 35%, adding, "That might even be optimistic." He cited UPI as an example of what's possible but stressed that India needs more visionary product creators, not just efficient project managers.

Here is how I assess our nation's capabilities in terms of innovation, which I have classified into 4 categories.

1. Process innovation: the best of Indian industry is world-class in process innovation. For example: our airlines, hospitals, retail and financial services are…

— Sridhar Vembu (@svembu) May 1, 2025

On the technology front, Vembu didn't offer a score but raised a red flag: India's top tech talent is often snapped up by global firms. "Retaining and bringing them back requires creating ambitious opportunities here," he wrote, calling on the private sector to step up.

As for scientific breakthroughs, Vembu was blunt: "We haven't even appeared for the exam." He said that while private enterprise must lead in products and tech, government funding is essential for deep science. "We need the equivalent of Bell Labs in the private sector," he added, referring to the famed American research hub that drove many 20th-century innovations.

Vembu's call comes at a time when India is celebrating milestones in space tech, pharma, and digital payments - but as the Zoho founder makes clear, the next frontier will need more than process excellence. It will require bold bets, big science, and a mission to keep India's talent building at home.