Mint Primer: Why India needs to make inroads into deep tech
Subscribe to enjoy similar stories. Deep Tech encompasses groundbreaking ideas rooted in science and engineering, tackling major global challenges. These innovations stem from fundamental research with specific commercial applications.
Examples include space tech startups, gene therapy techniques and green hydrogen ventures. Deep tech spans Artificial Intelligence (AI), cybersecurity, clean energy, manufacturing, advanced computing, mobility, agritech and infrastructure. Countries with a highly skilled workforce, and robust research and development capabilities lead in deep tech innovation.
The Indian startup ecosystem has traditionally focused on consumer and internet ventures like e-commerce and digital payments. However, a new playbook is emerging for deep tech startups, according to a report titled ‘India’s Deep Tech Revolution’, by venture firms Speciale Invest and Oister Global. Deep tech is attracting more capital, with investors like Peak XV, Blume Ventures, and Pi Ventures betting on innovations in cell manufacturing, green hydrogen, space and manufacturing.
Globally, the US leads in deep tech startups, followed by China, with India ranking among the top 10. Funding surged from $36 million in 2016 to $677 million in 2023. The Indian deep tech sector ranks ninth among well-funded countries globally that include Israel, Japan, Sweden, Germany and the US.
However, the funding gap is vast, with Chinese startups receiving 12x and UK startups 4x more capital than their Indian counterparts. Space tech startups rocketed from just 1 in 2014 to 190 in 2024, including Agnikul, Skyroot, Pixxel, GalaxEye and Digantara. In biotech, the landscape transformed from 50 startups in 2015 to nearly 6,000 by 2024.
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