Zoho's Sridhar Vembu wants India to learn THIS from China, says, 'there is a lot to learn from their...'

Zoho’s Sridhar Vembu has emphasised the need for India to develop its own manufacturing sector while also strengthening industrial research and development (R&D). In a social media post, Vembu highlighted the importance of learning from China’s phased approach to economic growth and adapting it to India’s needs.

"We must study China closely. There is a lot to learn from their experience, which I categorize into two distinct phases," Vembu wrote on X.

I have bookmarked this tweet on China's overlapping tech-indistrial ecosystems.

We must study China closely. There is a lot to learn from their experience which I categorise into two distinct phases.

1. At the entry level, India must make its own household goods (all the stuff… https://t.co/yDAKtgK1Ps

— Sridhar Vembu (@svembu) February 28, 2025

He explained that the first phase requires India to manufacture its own household goods instead of depending on imports. "India must make its own household goods, spreading small and mid-sized factories to every district. This is not difficult and can be cheaper than importing from far away," he said.

The second phase, according to Vembu, is to focus on industrial R&D to move up the value chain. "To scale up, we need a strong strategic industrial R&D focus in all areas of technology. China started Phase 1 over 40 years ago and has now mastered Phase 2 in the past 10-15 years," he added.

Vembu believes India can achieve this growth despite changing global market conditions. "Even if export-driven growth slows, India's domestic market can drive our own growth and job creation. That is far more balanced growth anyway," he said.

His comments were in response to an analysis of China’s tech-industrial ecosystem by Princeton researcher Kyle Chan. The discussion also saw users questioning whether India should follow the phases sequentially or simultaneously.

Vembu was clear: "We have to do both phases at the same time. India can do this."

Vembu recently stepped down as Zoho’s CEO to focus entirely on R&D and rural development, saying, "The future of our company depends on how well we navigate the R&D challenge."