The Ministry of Science and Technology recently forwarded support to Agnikul Cosmos, a Chennai-based aerospace startup, in developing and commercialising the Agnibaan launch vehicle. The move was part of the Government of India’s efforts to make satellite launches more accessible and affordable and enable significant advancement in India’s space capabilities. Moreover, the successful launch marks a significant moment for private players who are contributing towards India’s growing space sector. Agnikul’s success story is not a one-time phenomenon; such stories are abundant, indicating India’s thriving startup ecosystem.
DeepTech, with its disruptive nature, has the potential to solve India’s most pressing societal issues and boost industrial output while placing the nation as a tech powerhouse. The Government has undertaken over 55 regulatory reforms since 2016 to enhance the ease of doing business, simplify the process of raising capital, and reduce the compliance burden for the ecosystem. Initiatives such as the National Mission on Quantum Technologies and the DeepTech Startup Policy 2023, as well as support programmes through the Biotechnology Industry Research Assistance Council (BIRAC) and the Anusandhan National Research Foundation, reflect a serious commitment to fostering DeepTech innovation. Moreover, the Production-Linked Incentives for electronics, critical materials, IT, ACC batteries, drones, etc., have made locally manufactured components easily available and brought down the cost of production, helping startups to move beyond the pilot stage.
Presently, over 10,000 DPIIT-recognised DeepTech startups are impacting traditional sectors such as manufacturing, agriculture, automobile, etc., as well as emerging ones like autonomous vehicles, robotics, smart city techs, medical devices, cleantech, and fintech, to name a few. Almost every aspect of modern society and the economy is now vulnerable to disruption, opening prospects for DeepTech. The ‘Great Wave’ encompasses, among other cutting-edge technologies, quantum computing, nanotechnologies, synthetic biology, artificial intelligence (AI), robotics, blockchain, etc. However, the convergence of technologies and methodologies is even more significant as it will speed up and redefine innovation for years to come. India’s youth have the skills and potential to build ideas into businesses. However, access to capital, infrastructure, technology validation hurdles, and market integration remain major challenges that need to be addressed strategically. Funding presents the most compelling challenge. Indian DeepTech businesses raised $10 billion over the last five years, although financing fell by 77% in 2023 compared to 2022. Global DeepTech investments reached $40 billion despite economic slowdowns, with India accounting for a minor part. India’s seed funding is 50% less than the global average, making it difficult for ambitious entrepreneurs to expand beyond models.
While the ecosystem is maturing, long-term investor commitment and risk appetite remain, hindering their financial future. India has pioneered the software services model, which allows enterprises to scale quickly with minimal infrastructure expenditure. However, DeepTech requires deep resources, committed investors, and frequent infrastructure upgrades. Most startups struggle not because their proposals lack revolutionary ideas but because they face barriers in scaling – from early-stage R&D to commercial viability. Addressing these gaps requires a concerted effort from the industry and policymakers.
Government of India is working to create a progressive environment for tech startups to flourish and progress. Several steps have been taken to simplify compliance, self-certification, and single-window clearances to reduce hurdles. Startups enjoy certain tax exemptions, while the Fund of Funds initiative has allocated ₹10,000 crore to boost early-stage funding. The National DeepTech Startup Policy aims to unleash the power of technological growth across sectors and create new industries to enhance India’s capability and global competitiveness.
In recent times, a growing number of investors are backing India’s DeepTech startups. This is good news and indicates a maturing ecosystem that recognises the long-term potential of DeepTech innovations. Early-stage funding in sectors like semiconductors, biotech and cleantech has grown, empowering startups to scale rapidly and develop indigenous capabilities. In the coming year, the country will see a surge in such enterprises securing Series A funding and beyond, signalling maturity in the ecosystem. One should expect greater collaboration between academia, government, and industry towards the commercialisation of research, turning lab innovations into products ready for launch in the market.
Today, India’s DeepTech ecosystem is poised to address domestic challenges and emerge as a global leader. This reflects continuous innovation and adaptation to the country’s evolving needs. For an in-depth understanding of the trends impacting the evolution of the DeepTech industry in India, join us at the 32nd Convergence India & 10th Smart Cities India expo, co-located with the Startup Hub expo, scheduled from 19-21 March 2025, at Pragati Maidan, New Delhi.
About Convergence India & Smart Cities India expos The Convergence India expo, in its 32nd edition, has played a pivotal role in accelerating the telecommunications revolution in India over a three-decade period. Over the decades, the expo has continued to showcase innovation and advancements in the fields of telecom & IT, communications, broadcast, satcom, mobile & accessories, IoT, embedded tech, fintech & AI, and showcase India’s emerging role as a leader in technology and empowerment. Meanwhile, the Smart Cities India expo, in its 10th edition, has been pivotal in driving forward the Smart Cities mission, and working towards a more sustainable and citizen friendly future.
