December 19, 2024
The country is projected to capture 10% of the $700 billion global space economy by 2030
Growth is driven by returning Indian-origin scientists, strong academic institutions, and increased private capital investment
Government initiatives, including the National Deep Tech Startup Policy and BIRAC programmes, support the sector
Challenges include high capital requirements, technology validation issues, and market adoption risks
According to a new report, India is rapidly emerging as a leader in the global deep tech landscape, with significant breakthroughs in artificial intelligence (AI), green hydrogen, space technology, and biotechnology. The report, “India’s Deep Tech Revolution,” compiled by Speciale Invest and Oister Global, forecasts that these innovations will contribute to the country’s projected $7 trillion economy by 2030. It also highlights India’s potential to capture 10% of the $700 billion global space economy by the decade’s end.
The report attributes the growth in deep tech to factors including the return of Indian-origin scientists, robust academic institutions, and a surge in private capital investment. Speciale Invest, a seed-stage venture capital fund, and Oister Global, an alternative investment firm, believe that government initiatives are crucial in advancing the sector. Policies such as the National Deep Tech Startup Policy and programmes from the Biotechnology Industry Research Assistance Council (BIRAC) support commercial technology development. Additionally, leading academic institutions like IITs and IISc are helping to transform research into viable products.
While the deep tech sector in India shows great promise, it also faces substantial challenges. These include high capital requirements, technology validation issues, and the risk of slow market adoption. The report recommends that founders build diverse teams and strengthen intellectual property portfolios. Investors are encouraged to explore alternative funding models, including grants and debt financing, to support deep tech innovation.
Vishesh Rajaram, Managing Partner at Speciale Invest, stated that India’s deep tech sector is at a pivotal moment. The country has the potential to revolutionise its economy and become a global leader in science and engineering-driven solutions. As investments continue to support emerging startups, Rajaram highlighted India’s ability to solve some of the world’s most urgent challenges. He called for entrepreneurs, investors, and policymakers to collaborate and unlock India’s full potential in deep tech, emphasising that India is poised to lead the charge in global innovation.
Source: Times of India