Why in News?
- A new form of techno‑capitalism is taking shape in the United States, emphasising deregulation of artificial intelligence and digital finance.
- This shift is reshaping global power relations, prompting India to rethink its place in the emerging digital economy.
- The analysis is timely as the world debates the balance between national interests, innovation and regulation.
What Is Techno‑Capitalism?
- Techno‑capitalism is a system where modern technologies and private capital jointly concentrate power. Governments act as enablers rather than regulators.
- Key features include deregulation of AI and financial technologies, huge public‑private investment flows, and close ties between state authorities and technology giants.
- In such an order, technological dominance is pursued as a geopolitical strategy rather than purely as a developmental goal.
Global Shifts and India’s Position
- United States: The country has moved from state‑led science (exemplified by NASA in the mid‑20th century) toward a private‑sector‑driven model. Recent policies have prioritised artificial intelligence, cryptocurrencies and space technology, often with minimal regulation.
- China: Pursues a mission‑driven, centrally planned approach. The government directs large‑scale investments in AI, space, surveillance and digital infrastructure.
- India: Occupies a hybrid position. It has strengths such as robust IT services, a growing space sector and digital public platforms like UPI and Aadhaar. However, it faces underinvestment in research and development, fragmented regulations and slow scaling of start‑ups.
Challenges for India
- Employment risks: Rapid automation may displace jobs in traditional IT and business‑process outsourcing sectors.
- Migration uncertainties: Restrictive visa policies in the US could limit opportunities for Indian technology workers, affecting remittances and soft power.
- Low R&D spending: India invests less than 1 % of its GDP in research, far below leading economies.
- Regulatory gaps: While the Digital Personal Data Protection Act provides a framework, there is no comprehensive guidance on AI ethics, cryptocurrency oversight or deep‑tech compliance.
- Limited scale for start‑ups: Domestic start‑ups face challenges in accessing capital and global markets.
A Way Forward
- National tech‑industrial strategy: Integrate defence, space, AI, semiconductors and quantum research under a coordinated plan. Provide incentives and “sandboxes” for domestic champions.
- Research and higher‑education reforms: Strengthen linkages between universities, industry and mission‑driven projects. Establish innovation clusters modelled on Silicon Valley and Shenzhen.
- Reset international partnerships: Engage with the US and other partners on a co‑innovation basis, protecting domestic autonomy while accessing global capital and standards.
- Smart regulation: Encourage innovation in crypto and AI while addressing systemic risks. Protect consumers and maintain open standards.
- Skill development: Launch reskilling programmes focusing on artificial intelligence, cybersecurity and robotics. Introduce digital literacy in school and university curricula.
Conclusion
India stands at a crossroads in the emerging techno‑capitalist order. To avoid being a peripheral exporter of outdated technology services, it must craft a coherent innovation strategy, invest heavily in human capital and adopt strategic diplomacy. Balancing growth with regulation will be key to safeguarding sovereignty and competitiveness.
