India is preparing to deploy $25 billion to support Deep Tech startups, aiming to reduce its reliance on foreign frontier technology and catch up with the U.S. and China in the global technology race [1]. Rajat Tandon, president of the Indian Venture and Alternative Capital Association, stated that the government has committed $11 billion under the Research Development Infrastructure Fund, which will be matched by venture capital and private equity fund managers, with an additional $3-4 billion to be added, totaling $25 billion for Deep Tech investments [1].
Deep Tech encompasses startups in artificial intelligence, semiconductors, advanced manufacturing, drones, and space technology. The funding initiative comes as the Indian government recognizes the increasing importance of frontier technology amid rising geopolitical tensions [1]. The U.S. and China currently lead the global AI race, but India's reliance on foreign technology is seen as risky, especially after incidents such as Anthropic disabling access to its new models for foreign nationals in compliance with U.S. export controls earlier in June [1].
Industry leaders at SuperReturn Asia noted that India's Deep Tech sector is still in its early stages but is poised for significant growth due to the quality of ideas and talent in the country. Shweta Rajpal Kohli, president and CEO of Startup Policy Forum, highlighted a 'dramatic acceleration of innovation,' with some companies moving from prototype to commercialization [1]. Recent unicorns in the sector include Vibe-coding startup Emergent, space tech company Skyroot, and sovereign AI company Sarvam, each surpassing $1 billion in valuation during their latest fundraising rounds [1].
Anandamoy Roychowdhury, managing director of Crane Venture Partners, emphasized the positive impact of U.S. tariffs on the segment and revealed that 80% of his $150 million APAC fund is concentrated in India [1]. According to an IVCA report, nine out of ten funds in India are investing in Deep Tech startups, with 37% holding stakes in 11-20 such companies [1].
CONCLUSION
India's $25 billion commitment to Deep Tech startups marks a significant step toward technological self-reliance and global competitiveness. With strong government backing and increasing private investment, the sector is expected to accelerate innovation and produce global champions, positioning India as a rising force in frontier technologies.