India’s Deep-Tech Drive

India stands at a strategic crossroads where technology is no longer just an enabler of development but a core instrument of national power. In his recent Independence Day address, the Prime Minister called upon the nation to break free from technological dependency and assert itself as a leader in deep-tech innovation. This call reflects an urgent national imperative to build technological sovereignty across critical domains such as artificial intelligence, quantum computing, semiconductors, and space technology—areas shaping the future of economies, governance, and global influence.

Understanding Deep Technology

Deep technology (deep-tech) refers to innovations founded on cutting-edge scientific and engineering breakthroughs. Unlike traditional startups that focus on business model innovation—such as e-commerce or fintech—deep-tech ventures are technology-first and built on original R&D. They often involve longer development timelines, higher capital requirements, and greater technical complexity, but hold the potential for transformative impact across sectors.

Examples of deep-tech fields include:

• Artificial Intelligence (AI)

• Quantum Computing

• Biotechnology

• Advanced Materials

• Space Technology

Deep-tech startups differ fundamentally from traditional startups not only in their focus but also in their funding needs, risk profile, and long gestation periods, requiring a vastly different ecosystem of support.

India’s Strengths in Deep-Tech

1. Talent Pool

India is home to a large base of world-class engineers, scientists, and researchers. Indian professionals form the backbone of global tech companies’ R&D centers, and many top tech leaders globally are of Indian origin. India ranks third in the world in scientific research output and has made impressive gains in the Global Innovation Index, climbing from 81st to 39th.

2. Cost-Effective Innovation

Indian startups and institutions can operate at significantly lower costs than their counterparts in the US or Europe. This cost efficiency allows Indian deep-tech ventures to conduct experiments, iterate prototypes, and deploy pilots more affordably, making them attractive partners for global collaboration.

3. Policy Momentum

Recent years have seen a strong government push through initiatives like:

• The Production Linked Incentive (PLI) scheme for semiconductors

• National missions in AI, quantum technologies, and green hydrogen

• Expansion of fellowships like the Prime Minister’s Research Fellowship (PMRF)
  These efforts indicate growing political commitment to support indigenous capabilities in critical technologies.

Key Challenges in the Deep-Tech Ecosystem

Despite these strengths, India’s deep-tech ecosystem faces significant structural and systemic bottlenecks that must be urgently addressed.

1. Bureaucratic Inertia and Governance Issues

India’s bureaucratic system rooted in its colonial administrative legacy is not designed for innovation. The regulatory ecosystem is slow, approvals for research funding, IP filings, and testing clearances are often delayed. Multiple ministries govern different parts of deep-tech MeitY, DST, DRDO, DBT, ISRO creating fragmented oversight and poor coordination. Additionally, bureaucratic risk-aversion, driven by fear of audits and political backlash, further discourages support for cutting-edge technologies.

2. Funding Gaps and Market Failures

Deep-tech requires long-term patient capital, yet India lacks a dedicated strategic deep-tech fund. While India has a significant CSR pool (~?15,000 crore annually), these funds are largely underutilized in supporting technology R&D. Private investors also remain hesitant due to the high-risk, long-horizon nature of deep-tech. As a result, missions like IndiaAI and the National Quantum Mission remain underfunded when compared to global counterparts.

3. Brain Drain and Research Deficit

While India produces top-tier scientific talent, many researchers leave for better opportunities abroad. Domestic R&D budgets remain low, and academia-industry linkages are weak. Indian universities often do not produce large-scale, impactful research. Moreover, IP creation is limited, and India still largely serves as the back office of global innovation rather than a source of new deep technologies. The lack of advanced computing infrastructure, such as GPU clusters, also hampers AI and quantum research.

4. Legal and Ethical Concerns

India’s rapid deployment of technologies like facial recognition and AI-powered surveillance raises critical privacy and civil liberties issues. The Digital Personal Data Protection Act (DPDPA) has been criticized for granting broad exemptions to the government, thus weakening safeguards for citizens. In the absence of robust legal frameworks, these technologies risk overreach, creating a surveillance-heavy state with limited accountability.

5. Cultural and Strategic Misalignment

India’s innovation culture currently favors execution over invention. Startups are often focused on fintech, quick commerce, and other capital-light models that offer fast returns. As a result, frontier technologies are underexplored, and deep-tech is treated as a niche sector rather than critical infrastructure. Political theatrics and ideological disputes with global tech firms sometimes distract from the more pressing work of building core national capabilities.

Recent Government Initiatives

In response to the above challenges, the government has launched multiple efforts aimed at nurturing deep-tech innovation.

1. National Deep Tech Startup Policy (NDTSP)

Led by the Office of the Principal Scientific Adviser, the NDTSP proposes over 80 policy interventions, following consultations with nearly 200 experts. The policy aims to:

• Strengthen technological sovereignty

• Promote ethical and inclusive innovation

• Support startups through funding, infrastructure, and IP protection

• Build a knowledge-driven economy

2. R&D and Human Capital Programs

The Prime Minister’s Research Fellowship (PMRF) has been expanded, aiming to support 10,000 PhD scholars over the next five years. Additionally, the Anusandhan National Research Foundation (ANRF) will fund high-priority research in electric vehicles, climate tech, and foundational science.

3. Sectoral Missions and Platforms

• National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS): Focused on AI, robotics, drones, and IoT.

• Indian Semiconductor Mission: Focused on chip manufacturing and design.

• EVolutionS: Encouraging startups to develop EV components.

• BIRAC (Biotechnology Industry Research Assistance Council): Supporting biotech innovation and commercialization.

• CEST (Climate, Energy and Sustainable Technology): Focused on hydrogen, carbon capture, methane mitigation, and AI-based climate modelling.

4. Incubation Support

The government is promoting Technology Business Incubators (TBIs) across academic institutions to help early-stage startups move from prototype to product.

Way Forward

To become a global leader in deep-tech, India must take several coordinated steps:

1. Establish a Dedicated Strategic Deep-Tech Fund

India needs an India Strategic Fund that bridges the gap between academic research and industrial application. Models from the US (e.g., DARPA, NSF) and Israel (e.g., Yozma Fund) can offer valuable lessons.

2. Reform Bureaucracy and Streamline Governance

Governance needs to be fast, accountable, and coordinated. Streamlining regulatory processes, integrating efforts across ministries, and empowering innovation-friendly bureaucrats are key.

3. Strengthen Academia-Industry Linkages

Joint R&D programs, co-funded university labs, and IP commercialization strategies are essential to bring research to market.

4. Invest in Infrastructure and Talent

India must scale up advanced computing infrastructure and increase public funding for R&D to retain talent and support cutting-edge innovation.

5. Build a Culture of Invention

A cultural shift is needed—from incrementalism and short-term gains to long-term, foundational innovation. Deep-tech should be viewed as a strategic national asset, not just a commercial opportunity.

Conclusion

India has the essential ingredients talent, market size, and policy momentum to become a global deep-tech leader. However, this potential will remain untapped unless the country overcomes structural inertia, bureaucratic barriers, and cultural limitations. With bold reforms, strategic investments, and a clear national vision, India can move beyond being the back-office of the world and take its rightful place as a creator of the technologies that will define the future.