India’s DeepTech Evolution: Shaping the Future of Innovation and Growth

India’s tech landscape is undergoing a transformation, driven by the rise of DeepTech, which aims to solve significant national challenges and fuel industrial growth. The government is supporting this shift through regulatory reforms, funding initiatives, and policies like the National Mission on Quantum Technologies and the DeepTech Startup Policy 2023. Over 10,000 DeepTech startups are impacting sectors like agriculture, robotics, and fintech.

Despite challenges such as limited access to capital and infrastructure, government efforts like tax exemptions and the ₹10,000 crore Fund of Funds initiative are helping startups scale. Investor confidence is growing, particularly in sectors like semiconductors and biotech. India’s DeepTech ecosystem is poised to lead innovation, offering opportunities for collaboration and market-ready products. The country is on track to become a global tech leader.

India’s DeepTech Evolution: Shaping the Future of Innovation and Growth

India is undergoing a major transformation in its technology sector, driven by the rise of DeepTech. This emerging field is set to address some of the country’s most pressing challenges while fueling industrial growth. The Indian government is playing a crucial role in this shift by supporting innovative startups and implementing policies to encourage technological advancements. One notable example is Agnikul Cosmos, a Chennai-based aerospace company developing the Agnibaan launch vehicle to make satellite launches more affordable. This initiative is part of India’s expanding space sector, where private companies are playing an increasingly significant role.

Since 2016, the government has introduced over 55 regulatory reforms to simplify business operations, making it easier for companies to grow, secure funding, and comply with regulations. Initiatives such as the National Mission on Quantum Technologies, the DeepTech Startup Policy 2023, and support from organizations like the Biotechnology Industry Research Assistance Council (BIRAC) and the Anusandhan National Research Foundation highlight the government’s commitment to fostering DeepTech innovation. These efforts aim to advance key sectors such as electronics, IT, drones, and batteries, reducing costs for startups and increasing access to locally manufactured components.

Currently, more than 10,000 DeepTech startups are making an impact across industries such as manufacturing, agriculture, autonomous vehicles, robotics, and fintech. DeepTech is poised to revolutionize nearly every aspect of modern life through breakthroughs in quantum computing, artificial intelligence (AI), robotics, blockchain, and other cutting-edge technologies. The convergence of these innovations is accelerating progress and creating immense opportunities for India.

However, challenges persist. Access to capital, infrastructure, and technology validation remain significant hurdles for DeepTech startups. Although Indian DeepTech startups have raised $10 billion over the past five years, funding dropped by 77% in 2023 compared to the previous year. Additionally, seed funding in India is only half the global average, making it difficult for startups to scale beyond their initial stages. Investors remain cautious due to the high resource demands, infrastructure requirements, and long development timelines associated with DeepTech projects.

To address these issues, the government is providing tax exemptions, simplifying compliance processes, and allocating ₹10,000 crore through the Fund of Funds initiative to support early-stage funding. The National DeepTech Startup Policy is another strategic step toward unlocking India’s technological potential and strengthening its global competitiveness.

Despite these challenges, investor confidence in India’s DeepTech sector is growing. More funding is being directed toward sectors like semiconductors, biotech, and cleantech, indicating a maturing ecosystem. In the coming years, more startups are expected to secure Series A funding, and increased collaboration between academia, government, and industry will help turn research into market-ready products.

India’s DeepTech ecosystem is now better positioned to address domestic challenges and emerge as a global technology leader. This period of rapid innovation and adaptation ensures that the country remains at the forefront of the technological revolution.

For those eager to explore India’s DeepTech evolution, the 32nd Convergence India & 10th Smart Cities India expo will take place from March 19-21, 2025, at Pragati Maidan, New Delhi. This event will provide valuable insights into the future of technology in India.