India is set to invest $25 billion to bolster its Deep Tech sector, which encompasses areas like artificial intelligence, semiconductors, and space technology. This funding includes an $11 billion commitment from the government under the Research Development Infrastructure Fund, with additional support from venture capital and private equity.
Rajat Tandon, president of the Indian Venture and Alternative Capital Association, highlighted that this investment is a response to the increasing importance of frontier technology amid geopolitical tensions, particularly as the U.S. and China dominate the AI landscape.
Experts believe that the funding will help develop local Deep Tech companies, especially as concerns grow over potential technology access issues due to export controls. Recent successes in the sector, such as unicorns Emergent, Skyroot, and Sarvam, indicate a growing ecosystem capable of producing global champions.
However, challenges remain, including a significant funding gap compared to the U.S., where $136 billion was raised for similar ventures. Tandon noted that only 2% of investors in India can commit over $10 million, suggesting a need for increased investment from high net worth individuals and family offices to support the scaling of Deep Tech innovations