India Doubles Down on Deep Tech: ₹10,000 Crore Boost Approved to Propel Innovation and Startups

In a major stride toward cementing India’s position as a global hub for advanced technology, the Union Cabinet has approved an additional ₹10,000 crore to support the country’s deep tech ecosystem, including homegrown research, innovation, and startups. This funding forms part of the revised National Deep Tech Startup Policy (NDTSP), aimed at driving strategic technologies like AI, quantum computing, semiconductors, and space-tech.

The announcement signals New Delhi’s renewed focus on self-reliance in critical technologies amid rising geopolitical competition and growing demand for indigenous solutions in sectors of national importance.

What Is Deep Tech and Why It Matters

Deep tech refers to technology rooted in substantial scientific or engineering challenges, requiring long R&D cycles and deep domain expertise. Unlike traditional startups, deep tech ventures often focus on solving high-impact problems using advanced tools such as:

• Artificial Intelligence (AI)

• Quantum Computing

• Space and Aerospace Tech

• Advanced Robotics

• Cybersecurity and Cryptography

• Next-generation Semiconductors

• Biotechnology

These technologies have far-reaching implications across defence, health, agriculture, and clean energy—making government intervention critical to reduce risk and ensure scalability.

“Deep tech is the future of strategic autonomy,” said a senior official from NITI Aayog. “This fund will help Indian startups take bold steps in uncharted territories.”

Funding Details: Who Will Benefit?

The newly sanctioned ₹10,000 crore—an expansion to the ₹5,000 crore allocation announced in early 2024—will be managed through a public-private model under the Deep Tech Startup Fund (DTSF). The corpus is expected to:

• Support over 2,000 deep tech startups over five years.

• Fund pilot-stage and prototype development, particularly in quantum, AI, and aerospace sectors.

• Offer equity-based funding up to ₹25 crore per startup through partner venture capital firms.

• Strengthen academic-commercial collaboration, with grants to leading institutions like IIT Madras, IISc Bengaluru, and IIT Hyderabad.

The initiative complements India’s broader missions like Semicon India Programme and Digital India—pushing for sovereign capability in hardware and emerging tech platforms.

Industry Reactions: Widespread Applause

The announcement has received praise from entrepreneurs, tech think tanks, and global investors watching India’s deep tech trajectory.

Kris Gopalakrishnan, co-founder of Infosys and a long-time champion of India’s tech innovation, commented:

“This is the policy-level encouragement we’ve been waiting for. With proper implementation, India could create its own equivalents of OpenAI, SpaceX, or Palantir within the decade.”

Similarly, venture capital firms like Blume Ventures and Sequoia India have welcomed the move as a catalyst for unlocking risk capital in longer-gestation startups.

Alignment with National Security and Economic Strategy

India’s pivot to deep tech aligns with increasing global concerns around tech sovereignty. With rising U.S.–China tensions, nations are reshoring supply chains and investing domestically in key technologies.

According to a recent Brookings India report, India has over 300 deep tech startups, but most struggle to scale beyond seed funding due to long time-to-market and limited venture appetite. The government’s intervention addresses this gap while helping counter foreign tech dominance in critical infrastructure.

The fund is also seen as strategically essential for defence innovation, with a special focus on startups in drone tech, hypersonics, and AI-powered surveillance systems.

Challenges Ahead

Despite enthusiasm, experts caution that outcomes will depend heavily on:

• Transparent fund allocation

• Long-term research grants, not just startup investments

• Stronger IP protection laws

• Regulatory clarity for dual-use technologies

India must also improve coordination between academic labs, DRDO, and private entrepreneurs, ensuring seamless tech transfer and commercialization.

What Comes Next?

The Department for Promotion of Industry and Internal Trade (DPIIT), along with the Ministry of Electronics and IT (MeitY), will begin accepting applications from August 2025. Startups can apply via the government’s Startup India portal, with priority given to ventures in Tier-2 and Tier-3 cities.

Additionally, innovation hubs will be established in cities like Pune, Bhubaneswar, and Ahmedabad, backed by the National Deep Tech Innovation Council, which is expected to be operational by Q4 2025.