Does India Face Competition from Places Like New Zealand to Become a Global Tech Powerhouse?

New Delhi, India: India's growth story as a global technology and digital services leader is backed by its massive potential workforce and booming IT industry. However, we can't ignore the competition. Here is a look at India's tech boom and who else is vying for its position.
India's Path to Becoming a Global Tech Leader

India has moved from the outsourcing services it was once known for to creating cutting-edge technologies. It is now home to one of the largest information technology and business process outsourcing economies, employing more than five million people.

International companies are also flocking to India to use labour services for advanced work such as  AI, data analysis, and cloud computing. The country now exports around $157 billion worth of services each year.  Government strategies such as Digital India and Bio-E3 are equally important in promoting innovative ideas, enhancing environmental friendliness, and generating jobs.

Considering how technology is changing – artificial intelligence and SaaS services are two growing examples – the country is poised to stand out globally during the next phase of the technological revolution.
New Zealand's Approach to Tech and Productivity

India's approach to IT services is geared more toward exports and services, but New Zealand is emerging as a strong force due to its emphasis on innovation-based productivity at the macro level.

According to the latest report by the Productivity Commission, several areas play a strategic role in New Zealand’s tech vision: its commitment to productivity growth, skilled human capital, and efforts to encourage innovation diffusion across industries.

It’s the diffusion across industries that really stands out. No single industry is isolated from the rest. There are so many intersections; when one tech industry develops a new solution or product, it can be implemented in many others.

Consider the example of iGaming. A casino in New Zealand will use a variety of tech solutions for its operations, including fintech, wireless tech, web design, cyber security, AI for chatbots and personalised recommendations, comprehensive workspaces for in-house tasks, APIs and platforms for workflow… the list goes on. This illustrates how boosting diffusion and innovation benefits multiple seemingly disparate industries.

New Zealand wants to establish itself as a technologically advanced, environmentally friendly economy. It focuses on sustainable solutions, developments in artificial intelligence, and enhancements in agriculture.

One aspect that is unique to New Zealand is its focus on integrating Indigenous Māori values and worldviews in the global technology ecosystem. This vision of Māori tech includes bioscience, agritech, and AI.

This means that although India does face competition from New Zealand, it is taking place in slightly different areas of tech development and both countries should be able to carve out a space for themselves on the global stage.

Global Trends in the Technology Race

Many countries, including the US and the UK, are advancing AI, cloud computing, and other quantum technologies in what can only be described as a scramble for the latest technologies. The main technology trends for 2025, according to IEEE and Gartner, highlight the central position that AI, robotics, and green tech will occupy across many industries.

AI is projected to significantly impact the telecommunications, financial services, and healthcare sectors, with AI deployment practices being responsible for the overall enhancement of cases involving cybersecurity.

While countries like the US, China, and Japan remain top innovators, Israel, Singapore, and several other smaller nations are closing the gap in AI and digital transformation. India and New Zealand should focus on their core capabilities – India's human resources and mass production and New Zealand's eco-friendly innovation – if they want to remain relevant in the global economy. 

2025's Biggest Tech Trend

The AI industry will gain massive momentum in 2025, according to Gartner. It's greatly impacting the future of information systems and how businesses use AI, quantum computing, and robotics in business operations.

There appear to be some predictable consistencies in next year's trends in the tech landscape with the introduction of autonomous AI, energy-efficient computing, and ambient intelligence. For India, which already possesses considerable capabilities in AI and cloud services, these trends can be exciting when capturing leadership positions in areas where significant AI deployments are critical.

This is coming from Gartner's research, and there are signs of it everywhere. If you search for AI careers, you'll see the massive influx of available roles pushing to grow the technology.

New Zealand and India have different challenges and opportunities in tech competition. Although India might not think of New Zealand as a direct competitor, they could learn a lot from them.