Interview | D. Sridhar Babu: Telangana Wants To Move Beyond The Back-Office IT Model

The basic purpose of this event is to take forward Rahul Gandhi's vision in the changing geopolitical situation across the world. A new political order is emerging, particularly on the technology front, and technology is undergoing a major transformation. We need to understand what the new world order will look like and how progressive-thinking individuals and political parties can come together to deliberate and work towards creating an inclusive and democratic global order. That is the broad framework of Rahul Gandhi's vision.

Within this framework, we in Telangana, particularly our government, are looking at the future of our youth. There are several specific subjects being discussed in the sessions. Eminent jurists, policymakers and industry leaders have come together on this platform to deliberate on issues that are important for Telangana.

For instance, we are facing a drought-like situation in terms of the El Niño effect. We have a dedicated session on climate change, where policymakers who have been involved in developing policies in their respective countries and states will share their experiences. We hope to learn from them and develop a better understanding of how to address such challenges.

The other important area is industry and investment. Several industry leaders have come from different parts of the world, including South Africa and London. Yesterday, I had a series of discussions with representatives of several industrial houses who are interested in coming to India.

As an Industries Minister, I would otherwise have to undertake several roadshows in different countries to meet these investors. This summit has provided a common platform where I can meet them and showcase Telangana's policies and industrial ecosystem, including our strengths in IT, life sciences, pharmaceuticals, defence and aerospace.

So, while the summit is rooted in Rahul Gandhi's broader vision, hosting such an event will also benefit Telangana and its people. It will help us attract industries and create employment opportunities.

We are also organising another event on December 7, 8 and 9. This summit will serve as a precursor to that event, allowing interested investors and industry representatives to engage with us.

Not every interaction will necessarily translate into investment, but it is the fundamental responsibility of any government to project its state to the international community. The world has become smaller, and everyone is looking at India because it is poised to become a major economic powerhouse.

Publicity has been minimal. Have you seen any major publicity campaign? We have simply invited delegates and welcomed them. The arrangements are straightforward.

When hosting a global conference, certain responsibilities come with it. If a Prime Minister hosts an international event, wouldn't it be held at a seven-star hotel? If someone hosts a global conference in Uttar Pradesh, would they accommodate delegates in two-star or three-star hotels? Such arrangements reflect how we present ourselves to the international community.

We have not undertaken excessive publicity for this event either. We are doing it organically. You can see the difference. When Prime Minister Narendra Modi or a BJP leader undertakes an activity, the actual work may account for 10%, while publicity accounts for 100%.

Absolutely. My vision, and that of our government, is to move beyond the model in which IT companies and global capability centres based here function primarily as back offices for major corporations.

It is time to use next-generation technologies, including AI, to create value here. Let me give you an example. Before Independence, we used to export dough and import finished bread at a higher cost. We should not continue with that model.

For years, our highly skilled engineers, who possess tremendous intellectual capabilities, have been doing the coding and technical work for large companies abroad. Much of the intellectual property and the final products have been developed elsewhere and then brought back to us at a much higher value. My focus is to create an environment in which we generate that value here.

I agree to a certain extent. We have not had large corporations in India that have invested sufficiently in developing LLMs. The United States took the lead, and China is also at the forefront.

We have to address this. Hopefully, corporations will grow here because creating value requires substantial investment. Developing such technologies involves considerable research and innovation, which require significant capital.

Research and development need substantial capital infusion. The Government of India must facilitate the entry of major players willing to invest in areas such as artificial intelligence.

This is a concern that everyone has. However, new technologies have emerged in water management, and there are no major concerns about water consumption in data centres because of these technological developments.

Power, on the other hand, is certainly a challenge. We are trying to meet the additional requirements by moving towards green energy, including wind, hydro and other renewable sources.

Our new energy policy in Telangana provides flexibility through open access. Companies can generate power anywhere in the country and access it through the national grid by paying the applicable wheeling charges. This provides considerable reassurance to entrepreneurs.

Let me be very clear. We will not compromise on the power supplied to farmers. We will also not compromise on electricity for domestic consumers, traditional industries, existing industries or future industries.

All these requirements will be safeguarded. At the same time, data centres are essential for a state such as Telangana, which has a strong IT ecosystem. IT companies want data centres to be located close to their operations because processing speed is important. The faster a query can be processed or information retrieved, the better the service.

That is why data centres are increasingly concentrated in certain locations. We have to consider the interests of farmers, domestic consumers and industries first, safeguard their requirements and then accommodate the additional demand from data centres.

We are coming up with a new policy to promote development in other regions as well. Take the example of the IT tower that we inaugurated. Only four companies have moved in so far, but the entire space has been occupied. They are now asking for a second tower.

We are happy that we could convince investors to establish operations there. One of the people who has considerable affection for that region, having come from there himself, is now heading a major organisation and has established his own company there. That is how we intend to develop Tier II and Tier III cities.

It is a healthy competition, and I welcome it. Whether we look at other southern states or emerging centres in western and northern India, Telangana has certain advantages. First, we have the physical infrastructure, including roads, power and water. Second, we have the digital infrastructure. Optical fibre connectivity has been extended across the state, reaching the last mile and even remote villages. I come from a remote constituency, and connectivity has reached there as well.

Both physical and digital infrastructure are essential for an IT-driven state. Consider the Outer Ring Road, for example. Work on it began in 2006. At the time, there was considerable criticism from the BJP and the TDP over why so much capital expenditure was being spent on the project.

Today, look at how important it has become for Hyderabad and its people. It provides seamless access to different parts of the city. We have connected the Outer Ring Road to several radial roads, which will further improve connectivity and ease commuting. This kind of infrastructure gives Hyderabad a significant advantage.

You are right to a certain extent. AI is still evolving and has a long way to go. We are only seeing the initial results of its development. People often wonder what will happen when superintelligence becomes a reality. Will robots think and act like human beings? We do not know what the future will look like when that level of technological maturity is reached.

However, whenever a new technology emerges, some jobs may be lost while others are created. AI could automate certain jobs, but it will also create high-value employment opportunities. For instance, agentic AI may take over some existing tasks, but it will also create demand for people who can develop and manage these systems.

Technology can sometimes have negative consequences, but that does not mean we should refuse to embrace it. We cannot afford to remain outside the AI revolution or risk becoming redundant.

We have already started integrating AI into our own organisations and government departments. Departments are using data analytics to access information, generate inputs and improve productivity. This can create considerable value.

The only option before us is to understand how AI is evolving, leverage its potential and keep moving forward. That is also why we are developing an AI City. We will hold the groundbreaking ceremony in December. It will be a centre for next-generation research and development, including work on large language models and small language models.

We will provide the necessary facilities for companies and researchers to pursue their ideas. The AI City will also have an AI school or university, along with product companies. All these elements will help create a complete ecosystem.