- Early-stage funds are increasingly backing scalable, IP-driven startups, recognising the potential for long-term growth and global competitiveness.
India’s aspiration to become a $10 trillion economy is intrinsically linked to a profound structural shift in its technology ecosystem. The nation is evolving from a software-centric landscape to one increasingly driven by deep-tech innovations.
The transition, underscored by governmental support and burgeoning venture capital interest, signals a significant maturation of India’s technological capabilities and its ambition to become a global leader in frontier technologies.
The report by 3one4 Capital highlights a deliberate and proactive approach from the Indian government, evidenced by initiatives like the Rs10,000 crore ‘Fund of Funds’, the India Semiconductor Mission (ISM), and the National Deep Tech Startup Policy (NDTSP).
These programs demonstrate a concerted effort to cultivate innovation and commercialisation in areas such as artificial intelligence, semiconductors, and clean mobility. This commitment is not merely a financial investment, but a strategic move to foster a sustainable deep-tech ecosystem.
Furthermore, the report points to the increasing involvement of venture capital in the deep-tech sector. Early-stage funds are increasingly backing scalable, IP-driven startups, recognising the potential for long-term growth and global competitiveness.
India’s cost advantage, coupled with its vast pool of engineering talent, provides a unique edge in this competitive landscape. With approximately 20% of the world’s semiconductor design engineers residing in India, translating to around 125,000 professionals, the nation possesses a critical human resource advantage.
However, talent retention and development are crucial for sustained growth. National research programs, university incubators, and corporate R&D investments are playing a vital role in nurturing and retaining skilled professionals.
By strategically building upon this existing foundation, India is ensuring a robust pipeline of researchers, engineers, and entrepreneurs capable of driving deep-tech innovation.
Pranav Pai, Founding Partner and Chief Investment Officer, 3one4 Capital, said that India’s deep-tech sector is no longer a niche but a burgeoning opportunity ripe for investment and poised for global relevance.
However, he said the journey towards becoming a true leader in deep-tech requires sustained capital, enhanced ecosystem collaboration, and patient execution. Challenges such as the development of robust charging infrastructure for electric vehicles and the improvement of battery efficiency need to be addressed to fully realise the potential of clean mobility solutions.
With the government’s commitment of $10 billion in incentives and the cultivation of strategic public-private partnerships, India is actively strengthening its fabless design and semiconductor manufacturing ecosystem.
This strategic push, combined with its existing strengths in design and engineering, positions India for a pivotal decade of growth in AI, semiconductors, and clean mobility. Ultimately, disciplined innovation and a long-term commitment will be the defining factors in India’s quest to establish itself as a prominent leader in the global deep-tech landscape.