Zoho’s Sridhar Vembu Gives India 35% Score On Product Innovation, Urges Focus On Talent Retention

Vembu assessed India’s innovation through four key lenses: product innovation, process innovation, technology innovation, and scientific breakthroughs

Discussing scientific research, Vembu acknowledged the country’s lag in producing breakthroughs but praised the quality of young scientific minds

Source : X

Entrepreneur and Zoho co-founder Sridhar Vembu offered a candid assessment of India’s innovation ecosystem on Thursday, rating the country's product innovation capabilities at just 35 per cent. In a detailed post on social media platform X, Vembu said while India has shown flashes of brilliance, such as the development of the Unified Payments Interface (UPI), the overall capacity for innovation remains underwhelming.

“I would give ourselves barely passing marks [on product innovation], about 35 per cent, and that might even be optimistic,” Vembu remarked. He stressed the need for more “product people” in Indian industry, visionaries who can conceptualise new ideas, rather than focusing solely on efficient execution through project management.

Vembu assessed India’s innovation through four key lenses: product innovation, process innovation, technology innovation, and scientific breakthroughs.

On process innovation, Vembu was notably more optimistic. He rated the country at 70 per cent, citing world-class practices in sectors like aviation, healthcare, retail, and financial services. However, he added that similar process improvements must extend to small and mid-sized enterprises to boost competitiveness across the board.

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

In contrast, Vembu expressed concern over technology innovation, pointing out that much of India’s talent is currently being exported. “Today, we export most of our technology innovation talent. We have to first retain that talent, and that talent will only stay if they have challenging opportunities. We can also attract talent back if we create and fund ambitious projects,” he noted. He called for a stronger role from the private sector in nurturing innovation ecosystems.

Discussing scientific research, Vembu acknowledged the country’s lag in producing breakthroughs but praised the quality of young scientific minds. “They have to be funded adequately,” he said, urging the government to step up public investment in research and development.

Internet Reacts

A lot of X users shared their take on his post. One of the users wrote, “To truly transform India through innovation, we must begin by reimagining our education system for sure. Innovation in education should prioritize entrepreneurship and creative opportunities within classrooms, empowering students to become problem-solvers. At the same time, it is essential to infuse Indian Knowledge Systems (IKS) and a deep sense of patriotism into learning- instilling pride in our rich culture, heritage, and national identity. When students grow up connected to their roots and inspired by possibility, they will naturally feel driven to give back and contribute to making India truly great again!”