Technical regulation is a delicate balancing act – and according to the CEO of Tech Mahindra, which offers software services, it cannot be implemented too early or too late.

His personal belief is that “the regulator should chase innovation,” CP Gurnani told CNBC on Tuesday at the World Economic Forum’s Global Technology Governance Summit.

“The need for technical governance only arises when you have a problem or when you anticipate a problem,” he said. “You do it too early, you stifle it (innovation). You do it too late, you allow the abuse.”

His comments come from the fact that US tech giants like Google and Facebook are increasingly being scrutinized by regulators in the US, as well as in Europe and the rest of the world.

This combination photo from Reuters shows Facebook, Google and Twitter logos.

REUTERS

The EU has led the fight against big tech, pushing for new rules that focus on increasing competition and blaming online platforms for the content they host.

While technical regulation is required worldwide at this stage, Gurnani argued that “ethical governance” is the better way to go. He said it meant educating people about “what is right and what is wrong”.

“I am convinced that governance too early is bad for innovation, bad for (research and development), and bad for the early proactive person who creates something,” he said.

As global technology competition intensifies, India is well positioned to build bridges the gap with China, said Gurnani.

“I think China has unique advantages, the way they have invested in this infrastructure and how they are building some of their technology,” he said. “I think India has no choice right now. We need to build our semiconductor capacity.”

Still, he added, India is “one step ahead of China or most other countries” in software development.

“We have become a necessity for West or Each when it comes to IT and services,” he added.