India’s economic narrative is poised for a paradigm shift—from a services-dominated model to a product-driven innovation economy—according to real estate magnate and policy commentator Dr. Niranjan Hiranandani. Speaking on October 9, 2025, in response to the latest round of US tariffs targeting Indian exports, Hiranandani described the development not as a setback, but as a strategic inflection point that could accelerate India’s journey toward self-reliance and global product leadership.
“We were hesitant. We weren’t confident to create the Apples or the Microsofts. But today, there is an opportunity where beyond services, India will now create those products,” Hiranandani said, backing Prime Minister Narendra Modi’s Atmanirbhar Bharat and Viksit Bharat visions.
From Services to Products: A Strategic Leap
India has long been recognized as a global hub for IT services, back-office operations, and software outsourcing. However, Hiranandani argued that this model, while successful, has limited India’s ability to build indigenous global brands. The US tariffs, he said, will force India to pivot from serving global markets to creating for them.
India’s Economic Composition: Services vs Products
| Sector | Contribution to GDP (2025) | Export Share | Strategic Shift Needed |
|---|---|---|---|
| IT & Services | 48% | 60% | High |
| Manufacturing | 17% | 25% | Critical |
| Agriculture | 15% | 10% | Moderate |
| Emerging Tech (AI, Chips) | 5% | <5% | High |
US Tariffs: A Wake-Up Call for India’s Export Strategy
The Trump administration’s decision to impose fresh tariffs on Indian goods—citing trade imbalances and strategic recalibration—has disrupted traditional export channels. Hiranandani believes this adversity can be transformed into opportunity. “If you can’t export to America, look at an alternative base. Why not look at the whole world?” he said.
He emphasized that India must now build its own tech giants, manufacturing ecosystems, and innovation clusters rather than relying on foreign supply chains.
India’s Product Innovation Potential by Sector
| Sector | Global Opportunity | India’s Readiness | Key Enablers |
|---|---|---|---|
| Electronics | $2.5 trillion | Moderate | PLI schemes, chip fabs |
| EVs & Batteries | $1.2 trillion | High | R&D, lithium partnerships |
| AI & Semiconductors | $900 billion | Low | Talent, infra, FDI |
| Defence & Aerospace | $700 billion | Growing | HAL, DRDO, private sector |
| Agri-Tech | $300 billion | High | Startups, IoT, drone tech |
Changing Global Trade Dynamics: India Must Adapt
Hiranandani noted that the world has taken the US for granted since World War II, assuming status quo in trade relations. “We treated the bipolar situation as permanent. But both assumptions have changed completely,” he said. The new US stance is transactional: friend or foe doesn’t matter—trade terms do.
This shift, he argued, compels India to reduce dependency on any single market and build resilience through diversified exports and indigenous production.
India’s Path to Viksit Bharat: Timeline and Targets
| Vision Statement | Target Year | Key Milestones |
|---|---|---|
| Atmanirbhar Bharat | 2030 | 100% domestic chip production, EV scale-up |
| Viksit Bharat | 2047 | $30 trillion economy, global tech leadership |
| Digital India 2.0 | 2032 | AI integration, 5G/6G rollout |
| Make in India 2.0 | 2035 | Export-led manufacturing dominance |
Technology, Chips, and AI: India’s Next Frontier
Hiranandani stressed that India must stop relying on foreign nations for critical technologies. “Whether it’s chips, AI, or manufacturing, we must build our own capabilities,” he said. He cited the recent HAL fighter jet engine deal as a sign of India’s growing self-reliance in defence manufacturing.
Disclaimer: This news content is based on verified public statements, summit addresses, and economic data as of October 9, 2025. It is intended for editorial use and public awareness. The information does not constitute investment advice or political endorsement and adheres to ethical journalism standards.
