H1B era over, time to create in India, says Sridhar Vembu

CHENNAI: India must seize the present moment to turn external challenges into internal strengths, says Zoho Corporation founder and chief scientist, Sridhar Vembu. Pointing out that nearly 90% of the medical equipment used in the country was imported, he argued that start-ups now have a rare chance to replace imports with domestic production. “From nail cutters to drones and advanced devices, everything we depend on abroad can be manufactured in India,” he said.

In an exclusive interaction with DT Next, Vembu underlined that the end of the H1B visa era should not be viewed as a setback but as an opportunity for returning professionals to reinvent themselves as entrepreneurs. Excerpts follow…

Q: In the present geopolitical climate, what kind of challenges are Indian start-ups facing?

A: There are both challenges and opportunities. Let me begin with the opportunities. The Indian market is growing steadily. Nearly 90% of medical equipment is imported into India. Replacing these imports with domestic manufacturing presents a significant opportunity for today’s entrepreneurs. This is not limited to a specific sector. From something as simple as a nail cutter to advanced medical equipment, most products are currently imported, but all of these can be manufactured within India. We have labour, talent, space, electricity, and infrastructure. By combining them, products and services can be developed domestically. Wherever we rely on foreign goods and services — whether it is social media platforms like WhatsApp, drone technology, or medical devices—we must aim to create them in our own country. This is an enormous opportunity.

As for the challenges, one example is the increase in H1B visa fees for students and professionals. This should not be seen as a threat. Instead, it signals the end of an era. Those returning can start afresh here, often transforming themselves into entrepreneurs. We must learn to convert such challenges into opportunities.

Q: While addressing students earlier, you said India lacks modern equipment compared to China and US. How can this gap be addressed?

A: The first step is to build capital, even if it is small. We must begin with consumer goods manufacturing. From there, capital should be reinvested in other industries. With each stage, expertise grows, and so does our ability to innovate. If we dedicate ourselves with discipline and clear goals, India can catch up within a decade.

Q: How many years will it take for India to achieve 100% self-reliance?

A: The timeline varies across sectors. In some areas, catching up may take just 3-4 years. In others, it could take 10 years or more. For advanced semiconductor manufacturing, it may take between 5-10 years to achieve self-reliance, while certain fields could require 15 years. But if we begin now, India can realistically achieve complete self-reliance within the next 15 years.

Q: India’s trade uncertainty with USA, and tensions with Canada — what impact do they have on India’s business environment?

A: These issues do affect the businesses in India but, the Indian economy is strong and resilient. Our own growth trajectory has been positive. Moreover, there are expanding markets for India in Latin America, the Middle East, Southeast Asia, Japan, and even China. At present, India and China share a relatively stable relationship, which itself opens opportunities. Instead of only focusing on the challenges or being fearful of them, we must identify opportunities. That way, we can transition and reinvent ourselves.

Q: Chief Minister Stalin has often said that TN leads the country in economic growth. How do you view this?

A: Tamil Nadu’s economy is indeed performing well. However, there are serious social challenges that must not be ignored. One is the growing alcohol addiction among young people, particularly in rural areas. Then there is the rising use of narcotics, including ganja among school and college students. While TN takes pride in its economic achievements, it also has a responsibility to address these social issues with urgency. Economic progress is meaningful only when it is coupled with social well-being. Identifying, acknowledging, and tackling these problems must be a shared responsibility.

Q: Finally, how do you envision the role of entrepreneurs in this environment of both opportunities and challenges?

A: Entrepreneurs must not merely think of survival; they must operate in creating a self-reliant nation. Whenever external dependencies appear as threats, they must be transformed into opportunities for innovation and manufacturing within India. If we maintain discipline, focus, and persistence, Indian entrepreneurs can play a transformative role in shaping not just their businesses but also the nation’s economic future.