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The Indian government should mandate that foreign artificial intelligence (AI) companies and Global Capability Centres (GCCs) operating in the country register their intellectual property (IP) in India, Zoho founder and Chief Scientist Sridhar Vembu said in an interview with Moneycontrol.

Vembu argued that India’s top talent is being utilised to generate valuable IP, which is then registered abroad, depriving the country of potential tax revenues and ownership rights.

GCCs have been a significant contributor to India’s economy, employing over 1.6 million professionals and generating billions in exports. The sector is expected to contribute 3.5% to India’s GDP by 2030, with over 1,800 GCC units employing around 2.1 million professionals by the end of 2025. However, most IP generated in these centers is registered overseas, depriving India of potential tax revenues and ownership rights.

Vembu expressed concerns that India is settling for “asymmetrical terms” that allow profits and IP ownership to flow out of the country. He emphasized the need for India to develop its own deep-tech and AI infrastructure, rather than relying solely on global giants. “Why are Indian citizens working in India, generating valuable intellectual property, and why should that IP be registered only in America and not in India?” Vembu asked.

Vembu urged the government to make it mandatory for companies developing technology or AI models in India to register the resulting IP locally or license it to the parent entity abroad. This move aims to ensure that India can trade on equal terms and retain the benefits of its talent pool. “If something is based in India, make sure that they comply with Indian law and make sure those laws include, for example, that the IP has to be registered in India or licensed to the parent,” he added.

The comments come amid India’s growing push to build indigenous AI models and reduce dependence on foreign AI ecosystems. The proposed policy change could have significant implications for foreign companies operating in India and could potentially boost India’s technology sector. By registering IP in India, companies would be required to pay taxes and comply with Indian laws, generating revenue for the government and promoting local innovation.

Zoho, one of India’s largest SaaS companies, has long advocated for local technology sovereignty and the need for India to develop its own deep-tech and AI infrastructure. The company has consistently built its products in-house in rural India and has resisted foreign capital to maintain independence. Vembu’s comments reflect the company’s commitment to promoting India’s technology ecosystem and ensuring that the country benefits from its talent pool.

As the GCC sector continues to grow in India, it is essential for the government to consider policies that promote local innovation and ensure that companies operating in the country contribute to the economy.