India needs urgent push for deep-tech growth

Source: The post India needs urgent push for deep-tech growth has been created, based on the article “India’s startup ecosystem is catching up with China” published in “Indian Express” on 11 April 2025. India needs urgent push for deep-tech growth.

UPSC Syllabus Topic: GS Paper2-Economy-Indian Economy and issues relating to planning, mobilisation, of resources, growth, development and employment.

Context: The launch of Sputnik in 1957 pushed the US into a new era of scientific exploration. A similar urgency is now needed for India as deep-tech innovations like generative AI, robotics, and fusion tech reshape the world. Commerce Minister Piyush Goyal’s remarks on India’s deep-tech startup shortage signal a crucial call to action.

For detailed information on India’s Startup Growth Opportunities and Key Challenges read this article here

Importance of Deep Tech in Today’s World

1. Historical Context: The importance of deep tech today mirrors the urgency seen during the 1957 space race, which propelled the U.S. into rapid scientific progress after the Soviet launch of Sputnik.
2. Current Relevance: Deep tech is driving key innovations — reusable rockets, generative AI, humanoid robots, and advanced medical drugs — which are transforming industries and societies.
3. Global Leadership: China has filed over 38,000 generative AI patents between 2014 and 2023, clearly outpacing other nations and taking a lead in frontier technologies.
4. Economic Impact: Generative AI alone could add $1 trillion to India’s GDP by 2030, proving deep tech’s power to shape national economies.
5. National Security: Deep-tech strengthens self-reliance and acts as a buffer against geopolitical risks and supply chain shocks.

India Stands Globally at a Developing Stage in Deep-Tech Innovation

1. Patent Filings: India lags behind while China leads with 38,000 GenAI patents during 2014–2023 — far ahead of the US.
2. Global Rankings: China dominates 57 out of 64 critical technologies, according to the Australian Strategic Policy Institute.
3. R&D Investment: India spends less than 1% of its GDP on R&D. In contrast, the US, UK, Germany, and Japan spend over 3%, while China allocates 2.68%.
4. Notable Startups and Sectors: Despite the gap, India is showing promise with innovative startups like Skyroot, Agnikul, Ola, and Ather.

India’s Major Deep-Tech Achievements and Startups

1. Space Launch Vehicles: Skyroot’s Vikram-S launch in 2022 was India’s first private space mission, marking a major milestone.
2. Flying Taxis & Electric Mobility: Startups like Sarla, ePlane, Blu-J, Ultraviolette, and others are driving innovation in urban air mobility and electric vehicles.
3. Robotics & AI: Addverb, CynLR, and Perceptyne are advancing automation and AI applications.
4. Satellite Technology: Firms like Pixxel, Dhruva Space, and Digantara are building next-gen satellites for space communication and observation.
5. Biotech & Semiconductors: CrisprBits is working on gene editing, while Mindgrove is progressing in semiconductor design.

Government Support to Deep-Tech Growth

1. India Semiconductor Mission (2021): Allocated Rs 76,000 crore to develop fabrication and design capabilities.
2. IndiaAI Mission (2024): Set aside Rs 10,371 crore to build a robust AI ecosystem.
3. Deep Tech Fund of Funds: Introduced with Rs 10,000 crore to bridge funding gaps in deep-tech startups.
4. Space-tech Venture Capital Fund: Allocated Rs 1,000 crore to boost space innovation.

Challenges for India’s Deep-Tech Growth

1. Low R&D Spending: India’s investment is under 1% of GDP, far below global leaders.
2. Funding Gaps: Deep tech needs long-term funding, but venture capital focuses on quick returns — a “long gestation conundrum.”
3. Talent Shortage: Too few engineers are trained in frontier technologies like AI, robotics, and chips.
4. Slow Patent Approvals: Delays discourage innovation and product development.

Solutions for India’s Deep-Tech Growth

1. The IndiaAI Mission and Deep Tech Fund of Funds aim to provide patient capital to startups.
2. The National Deep Tech Startup Policy (NDTSP) encourages STEM education and advanced training.
3. India must accelerate patent approvals and strengthen university–startup collaboration.
4. Startups like Skyroot, Qnu Labs, and CrisprBits prove India can lead with bold innovation when backed well.

Question for practice:

Discuss how deep-tech innovation can transform India’s economic and strategic future, and what challenges need to be addressed to achieve global leadership.