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Why are Indian IT service providers not tapping into the domestic market?

While the 'Make in India' initiative has boosted domestic smartphone manufacturing, the $200 billion Indian IT services industry remains focused on international markets over the domestic one

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Representative image.

Shivani Shinde Mumbai

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A decade ago, if someone asked Indian IT service providers why they weren't focused on the domestic market, the response typically pointed to the limited size of the Indian IT market and its price sensitivity.  
 
Another key factor behind their lack of interest was the comparatively lower pricing of deals in India, which paled in comparison to the higher revenues they could earn in markets like the US. Most importantly, regions such as the US, Europe, and Japan were (and remain) the largest investors in technology, making them far more attractive to Indian IT companies.  
 
Additionally, the Indian government, despite