India’s Tech Puzzle: Why No Google, Amazon, or OpenAI?
- Anshul Bagai
- Jan 30
- 3 min read
Updated: Feb 11
India has a thriving IT industry and startup ecosystem, yet it hasn't produced a global technology product that competes at the level of Google, Amazon, or OpenAI. The reason?
India's "entry-to-exit cycle" of engineers is broken, and its funding culture is focused on revenue rather than deep tech innovation. Moreover, India's CTOs tend to move away from technical roles earlier than their U.S. counterparts, impacting long-term product innovation. Let’s dive deeper into the issue.
The Broken Engineering Career Cycle in India
Delayed Entry into Core Tech Roles
India (IT Services Model)
India produces 1.5 million engineers per year, but only about 20-25% are employable in the IT sector.
Many graduates take 2-3 years to become independent developers due to outdated education and a lack of real-world coding exposure.
Most IT service firms train freshers in legacy technologies rather than modern AI, cloud, or deep-tech skills.
USA (Product-First Model)
Engineering graduates enter the workforce job-ready, thanks to hands-on training, internships, and real-world projects.
Developers are productive within the first year of employment.
Early Shift Away from Coding (5-8 Years Experience)
India (Management-Oriented Career Path)
Most engineers stop coding after 5-8 years and move into Project Management, Delivery, or Client-Facing roles.
Why?
IT services companies push engineers into management rather than technical mastery.
Pay scales in tech vs. management are not competitive—senior engineers are underpaid compared to managers.
No strong technical growth path (such as Principal Engineer or Distinguished Engineer roles in the U.S.).
USA (Tech-First Career Path)
Engineers continue coding for 10-15+ years, with roles like Staff Engineer, Principal Engineer, and Distinguished Engineer.
Companies reward deep technical expertise, allowing engineers to stay technical while earning competitive salaries.
Stagnation in Deep Tech & Innovation
India (Execution-Focused Model)
Since engineers leave coding early, deep technology expertise is never developed.
Most Indian tech leaders come from IT services backgrounds, which focus on execution rather than invention.
USA (Innovation-Driven Model)
Senior Engineers in the U.S. stay in AI, cloud, and software architecture for decades, creating global products.
Big Tech (Google, OpenAI, Tesla, AWS) is built on long-term technical innovation, not short-term service execution.
The Funding Culture Problem: Revenue-Focused vs. Tech-First
Investor Expectations
India: ROI & Business Model Focus
Investors prioritize startups with proven revenue models and early monetization.
Deep tech startups struggle because Indian VCs expect fast profitability, not long-term R&D.
USA: Problem-Solving & Deep Tech Focus
Investors fund AI, deep tech, and long-term innovation even if there’s no immediate revenue.
OpenAI, Tesla, and Google were built on R&D funding, not quick ROI.
Capital Availability
India: Limited Venture Capital for Deep Tech
Limited access to large-scale venture funding means startups must be lean and revenue-driven early.
USA: Abundant Venture Capital for Risk-Taking
The U.S. ecosystem supports moonshot projects, where failure is accepted as part of innovation.
The Role of the CTO: India vs. USA
A Chief Technology Officer (CTO) plays a critical role in shaping technology vision and driving product innovation. However, the role differs vastly between India and the U.S.
CTO in India: More Business, Less Technical
India (IT Services & Startup CTOs)
Most CTOs stop coding early and transition to vendor management, delivery, and client relations.
Technical involvement is minimal—most CTOs oversee projects rather than lead deep technical innovation.
Exception: CTOs in deep-tech startups (AI, cloud, blockchain) remain hands-on but transition to business-focused roles as the company scales.
CTO in the USA: Deeply Technical & Innovation-Driven
USA (Product-Based & Big Tech CTOs)
Many CTOs continue coding or stay heavily involved in system architecture.
Tech-first culture values CTOs who drive R&D and innovation (e.g., OpenAI, Tesla, Stripe).
Examples of hands-on CTOs:
Elon Musk (Tesla, SpaceX) – Deeply involved in AI & system design.
Patrick Collison (Stripe CTO) – Still contributes to product architecture.
Guillermo Rauch (Vercel CEO/CTO) – Active in Next.js development.
Comparison Table: India vs. USA
What Needs to Change in India?
Fix the Engineering Pipeline – Universities must focus on real-world coding, AI, and cloud-based projects.
Encourage Engineers to Stay Technical – Companies should create high-paying tech leadership roles (Principal Engineer, Technical Fellow).
Invest in Deep Tech & R&D – More startups should focus on AI, cloud computing, and platform innovation rather than services.
Change the Funding Mindset – Indian investors must support deep-tech startups with long-term investments, not just quick returns.
