Business
India’s Deep Tech Ambition: A Call for Innovation
Commerce Minister Piyush Goyal set the stage ablaze at Startup Mahakumbh 2025 (April,3rd) challenging India’s startup ecosystem to pivot from consumer-driven ventures like artisanal ice creams to transformative technologies like AI and semiconductor chips.
11 September 2025
TL;DR
While premier institutions like the Indian Institutes of Technology (IITs) and Indian Institutes of Management (IIMs) have pioneered incubation support for years, their programs are largely accessible only to students in engineering, technology, or management. A new wave of universities is now breaking this mold by offering entrepreneurship courses after the 12th grade or equivalent degrees like the IB Diploma Program.
Table of Contents
India’s Deep Tech Ambition: A Call for Innovation
Commerce Minister Piyush Goyal set the stage ablaze at Startup Mahakumbh 2025 (April,3rd) challenging India’s startup ecosystem to pivot from consumer-driven ventures like artisanal ice creams to transformative technologies like AI and semiconductor chips. Piyush Goyal argued that such companies are successful commercial enterprises but do not align with the disruptive, future-oriented spirit of startups that should drive national progress. Pointing out the contrast between India’s focus on quick-commerce apps with China’s advancements in machine learning and robotics, he highlighted the urgent need for deep tech to fuel India’s global leadership and economic growth through high-impact, sustainable industries.He also added that India has only about 1,000 deep-tech startups, calling it a “disturbing sign,” and urged entrepreneurs to “think big” and “go beyond the boundaries of our own thinking” to contribute to Viksit Bharat 2047. Goyal’s comments sparked debate, with some entrepreneurs like Zepto CEO Aadit Palicha defending consumer startups for job creation and economic contributions, while others, including former Infosys CFO Mohandas Pai, criticized the government for insufficient support in deep-tech funding and incentives.
What is Deep Tech?
Understanding deep tech involves recognizing its foundation in original scientific research or complex engineering, requiring years of dedicated research and development to transform groundbreaking discoveries into transformative applications. Unlike incremental innovations, deep tech—encompassing technologies like artificial intelligence, quantum computing, biotechnology, and advanced robotics—drives profound change by addressing critical challenges: agriculture, air pollution, healthcare, and education. For instance, AI-driven crop monitoring can optimize yields for Indian farmers, biotech solutions can curb air pollution through cleaner industrial processes, AI diagnostics can enhance rural healthcare access, and AI-powered edtech platforms can personalize education for millions, meeting India’s unique needs with scalable, impactful solutions.Take OpenAI’s journey as an example. Founded in 2015 with a mission to advance artificial general intelligence, it faced years of rigorous experimentation, evolving from GPT-1 in 2018 to GPT-2 in 2019, and the powerful GPT-3 in 2020. The 2022 launch of ChatGPT, built on these foundations, turned AI into a global phenomenon, impacting everything from education to enterprise solutions. This nearly decade-long effort, backed by billions in funding and collaborations with top researchers, shows deep tech’s power comes from persistence and bold vision.Government funding often ignites these breakthroughs. Agencies like DARPA have fueled transformative innovations like ARPANET, which birthed the internet, and GPS, now critical to global navigation. The National Science Foundation supports cutting-edge AI and biotech research, while India’s DRDO and ISRO drive advancements in quantum tech and space systems, fostering self-reliance. These public investments, often in collaboration with academic institutions and industry, de-risk high-stakes R&D, enabling deep tech to evolve from visionary ideas to solutions that elevate nations and reshape the global landscape.
Why Deep Tech Startups are important for India?
Deep tech startups are vital for India’s technological sovereignty and self-reliance (Atmanirbhar Bharat), enabling the nation to assert control over critical technologies and reduce dependence on foreign powers amid geopolitical tensions, as seen in China’s pursuit of independence through innovations like DeepSeek AI despite US restrictions. By driving groundbreaking innovations, such as the discovery of Penicillin that revolutionized medicine, these startups form the backbone of scientific advancements essential for ushering in Industrial Revolution 4.0 and propelling India toward Viksit Bharat—a developed superpower by 2047. Economically, they promise immense growth, with generative AI alone potentially adding $1 trillion to India’s GDP by 2030, as highlighted by former NITI Aayog CEO Amitabh Kant. Strategically, they bolster critical sectors like defense, energy, and healthcare, providing a technological shield against uncertainties.
Systemic Barriers and Pathways Forward for India’s Deep Tech Ecosystem
India’s startup ecosystem, with over 100 unicorns, leans heavily on consumer-driven models, but structural challenges limit deep tech growth, as noted in The Indian Express. To address these, here are key barriers and suggested pathways:Low R&D Funding and Investment: Indian government spends less than 1% of GDP on R&D compared to >3% in the USA, UK, Germany, and Japan, and 2.68% in China; total tech investment from 2014-2024 is $160 billion versus China’s $845 billion. Increase public-private funding and government-backed funds to support high-risk ventures.Long Gestation Periods: Deep tech requires extended timelines beyond typical VC horizons, with a focus on quick returns stifling growth; regulatory hurdles like the now- scrapped Angel Tax exacerbated this. Promote patient capital through incentives and loan guarantees to reduce investor risk.Talent Paradox and Brain Drain: Despite producing lakhs of engineers, few specialize in frontier tech, leading to migration to Silicon Valley (e.g., Aravind Srinivas of Perplexity). Reform education to foster cutting-edge research, advanced labs, and programs to attract and retain global talent.Commercialization Bottlenecks: Challenges in scaling prototypes due to long R&D cycles, weak industry-academia links, and lack of regulatory sandboxes. Strengthen collaborations between IITs/IISc and startups, inspired by US models like DARPA, to facilitate tech transfer.Regulatory and Bureaucratic Hurdles: Complicated IP protection, patent processes, and uncertainties in sectors like genomics and drones delay progress; high import taxes and red tape add friction. Streamline regulations, reduce import duties, and enhance IP ecosystems with faster patent approvals.Global Dominance by USA and China: USA leads via Nvidia, China via 38,000+ generative AI patents (2014-2023) and dominance in 57/64 critical technologies. Encourage international collaborations for joint R&D and global standards participation.Stagnation in Startup Ecosystem: Majority focus on consumer tech rather than deep tech like OpenAI or DeepMind. Shift priorities through targeted policies to nurture high-tech breakthroughs.Lagging Innovation Ecosystem: India ranks 39th in Global Innovation Index 2024 (vs. China’s 11th), with universities trailing in original research. Build robust innovation frameworks via reforms and early-stage programs.These steps can empower India’s deep tech sector to compete globally in AI, cybersecurity, and beyond.
Thriving Deep Tech Companies in India
India’s deep tech sector is vibrant, featuring prominent players alongside emerging innovators. Pixxel, a space tech leader, develops hyperspectral imaging satellites for earth observation, securing NASA contracts and significant funding. Agnikul Cosmos, incubated at IIT Madras, pioneers 3D-printed rocket engines and achieved India’s first private orbital launch. Ola Electric, a major EV manufacturer, advances sustainable mobility with indigenous battery tech and gigafactories. Other notables include Chara Technologies, innovating rare-earth-free motors for EVs and defense; Chakr Innovation, reducing emissions with retrofit cleantech devices; ideaForge, leading in UAVs for surveillance and agriculture; Intonation Research Labs, advancing biotech drug discovery; and OrangeWood Labs, offering AI-powered robotic arms for SMEs. These companies, supported by $1.6 billion in 2024 funding (78% YoY growth per Nasscom), highlight India’s rising deep tech capabilities, with ongoing ecosystem enhancements needed for global scaling.
