India’s Deep Tech Ecosystem: A Surge in Innovation

Overview of India’s Deep Tech Landscape

India’s deep tech ecosystem is experiencing significant advancement, propelled by effective governmental strategies, bolstered investor confidence, and a burgeoning pool of entrepreneurial talent. This area is increasingly acknowledged as a formidable global player. Thanks to a unique mix of cost-efficiency, intellectual resources, and substantial market possibilities, India stands to attract foreign investments and collaborations.

Investment Trends in Deep Tech

There is a noticeable increase in investors willing to support early-stage deep tech startups, even amidst considerable technological risks. This evolution signifies a maturing environment that acknowledges the enduring potential of deep tech breakthroughs. Funding in initial stages within sectors such as semiconductors and biotechnology has risen, enabling startups to expand quickly and cultivate domestic capabilities. As nations aim to diversify their technological supply chains, India’s strategic advantages and forward-thinking policies promote it as the favoured locale for deep tech partnerships.

Showcase Startups Thriving in India’s Deep Tech Scene

Two startups highlight India’s deep tech capabilities:

Agnikul Cosmos achieved a milestone by launching the world’s first rocket featuring a single-piece 3D-printed engine from Sriharikota in May 2024. This accomplishment was the result of years of research and development, supported by ISRO’s guidance and the establishment of IN-SPACe, along with substantial backing from IIT Madras. Srinath Ravichandran, the CEO of Agnikul, exemplifies this commitment, having returned from the USA to develop rockets in India. To date, Agnikul has secured $40 million in funding.

Mindgrove Technologies, a fabless semiconductor startup, has successfully designed their 28nm Secure-IOT chip, aimed at various applications including IoT, automotive, and consumer electronics. These chips are tailored to meet the mass-market demands of Indian businesses and consumers, significantly decreasing reliance on imported alternatives. Mindgrove capitalises on over a decade of research at IIT-M, focusing on the RISC-V-based Shakti core, benefitting from the Indian Semiconductor Mission (ISM) and financial support from the Design Linked Incentive (DLI) scheme of MeiTY.

Foundations of India’s Deep Tech Development

India’s deep tech evolution is sustained by solid foundational elements: a vibrant entrepreneurial ecosystem, ample talent, and an extensive support framework. The combination of supportive policies, rising global interest, and continuous innovation guarantees that India will persist as a deep tech hub. With an emphasis on tackling local issues while appealing to global markets, Indian deep tech startups are strategically positioned to make a lasting impression.

Forecast for India’s Deep Tech Startups in 2025

Building on the progress of the last decade, expectations for 2025 include:

• A notable increase in deep tech startups obtaining Series A funding and beyond, indicating ecosystem maturity.
• Enhanced cooperation among academia, government, and industry to nurture innovation.
• More engagement from generalist funds to back early-stage deep tech innovations.
• A strengthened emphasis on translating research into market-ready products.
• A rise in professionals from larger Indian firms choosing to embark on entrepreneurial ventures.
• Continuing trends of Indians returning from overseas to pursue deep tech opportunities in India.
• Growth in interest from Indian academics and faculty keen on transforming their research into startups for commercialization.

India’s deep tech ecosystem is set not only to resolve domestic dilemmas but also to establish itself as a forerunner on the global stage. The evolution of deep tech will be crucial in forming a more sustainable, innovative, and prosperous future for both India and the world.