India is entering a critical phase in its technological journey. While software services, fintech, and consumer apps have driven the past two decades, the country now needs a robust wave of deep-tech startups. These ventures don’t build delivery apps or digital wallets—they work on quantum computers, drones, hyperspectral satellites, AI chips, and next-generation cybersecurity. They require long-term vision, scientific rigor, and national commitment.
What Is Deep Tech?
Deep tech refers to startups grounded in scientific research and advanced engineering. They develop solutions with significant technological barriers—products that are hard to replicate and often take years to commercialize. Unlike software-only ventures, deep-tech startups combine software with hardware, research labs with manufacturing floors.
Fields like artificial intelligence (AI), quantum computing, aerospace, biotechnology, cybersecurity, and semiconductors fall under deep tech. The impact of such startups can be transformative, reshaping industries, solving global problems, and securing national interests.
India’s Deep-Tech Landscape in 2025
India currently houses more than 4,300 deep-tech startups. These ventures make up roughly 4% of the country’s total startup base, but their influence far exceeds that proportion. The country now ranks 6th globally in deep-tech ecosystems.
Startups in this space are gaining momentum. Within the first half of 2025 alone, India added 57 new deep-tech ventures. The funding scene also shows remarkable progress. In just the first four months of 2025, deep-tech startups in India raised $324 million across 35 deals—double the amount from the same period last year. This growth signals investor confidence and a rising appetite for deep innovation.
Government Push for Deep Tech
The Indian government understands the strategic importance of deep tech and has launched several initiatives to fuel its growth.
The National Quantum Mission has accelerated quantum research in the country. Under this mission, startups like QpiAI have already built a 25-qubit quantum computer—India’s first—using superconducting technology.
The Atal Innovation Mission (AIM) supports grassroots innovation by funding over 10,000 tinkering labs across schools and colleges. These labs introduce young students to 3D printing, robotics, and AI at an early age.
IITs, especially IIT Madras, are leading the charge in building specialized hubs. IIT-Madras runs ‘Pravartak’, a platform that focuses on advanced research in semiconductors, quantum science, and computing. These hubs incubate startups and help them transition from academic research to market-ready products.
In addition, the National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS) has established 25 hubs in top technical institutes to support deep-tech startups in AI, robotics, IoT, and data science.
Emerging Stars in India’s Deep-Tech Scene
Several Indian startups have already made global headlines through innovation.
QpiAI, headquartered in Bengaluru, launched India’s first functional 25-qubit quantum computer in April 2025. The startup also develops quantum processors, simulators, and AI-augmented design tools.
Raphe mPhibr, another Bengaluru-based startup, secured $100 million in funding to develop drone swarms and next-gen UAVs for defense. Its technologies support India’s goal of self-reliance in defense manufacturing.
Pixxel, a space-tech startup, has built and launched hyperspectral imaging satellites that provide ultra-detailed Earth observation data. Their technology aids agriculture, oil exploration, and climate research. Pixxel also won a NASA contract, a rare feat for an Indian company.
Veera Dynamics and Binford Labs, based in Hyderabad, co-developed India’s first stealth drones for military use. These unmanned aerial systems match global standards in range, radar evasion, and real-time control.
Neysa, a deep-cloud infrastructure startup, raised $50 million in 2025 to build India’s own GPU cloud and MLOps platform, helping Indian developers run large AI models without relying on foreign cloud providers.
Sarvam AI, backed by major investors, raised $41 million to build large language models in Indian languages. The startup plays a key role in democratizing AI and ensuring that Indian users benefit from GenAI tools built natively.
Why India Needs More of These Startups
1. Job Creation for Engineering Talent
India produces over 900,000 engineering graduates every year. However, many end up in low-skill IT jobs or leave the field entirely. Deep-tech startups offer challenging roles in research, product development, and high-end manufacturing. These startups retain top talent in the country and create meaningful, future-ready careers.
2. Strategic and National Security Needs
Global geopolitical tensions demand self-reliance in defense, space, and cyber capabilities. India cannot afford to import critical tech like drones, satellites, or encryption systems. Deep-tech startups fill these gaps by building indigenous systems tailored to local needs.
3. Global Competitiveness
Countries like China, the U.S., and Israel invest heavily in deep tech. India must do the same if it wants to stay globally relevant. By scaling up deep-tech startups, India can leapfrog legacy technologies and become a global leader in select areas such as quantum computing, AI, and aerospace.
4. Solving Core Development Challenges
Deep-tech solutions can address India’s toughest problems—from clean water to sustainable energy, precision farming, early disease detection, and disaster management. These startups don’t just chase profits—they build public value.
5. Shifting from Consumer Apps to Scientific Innovation
India’s startup ecosystem has created unicorns in payments, edtech, and e-commerce. However, most of these operate on models borrowed from the West. Deep-tech startups build original intellectual property (IP). This shift moves India from imitation to innovation.
Challenges That Need Immediate Action
Deep-tech startups need longer timelines and deeper pockets. The average time to product-market fit in this space can take 5 to 10 years. Traditional VCs often hesitate due to lack of quick exits.
India also lacks adequate prototyping infrastructure. Many startups struggle to test hardware, fabricate chips, or access high-performance computing for AI training. Limited access to deep-tech mentors and commercialization partners compounds the problem.
Moreover, government procurement policies often favor legacy vendors. Deep-tech startups need early validation and scale. Without anchor customers or institutional orders, many promising ventures struggle to sustain.
What India Must Do Now
- Encourage Long-Term Capital
India needs more patient capital—government-led venture funds, sovereign wealth backing, and long-gestation funds that understand deep-tech cycles. These investors must fund startups through multiple research and development phases.
- Build Regional Deep-Tech Clusters
Cities like Bengaluru, Pune, Hyderabad, and Chennai can serve as deep-tech clusters with access to labs, test beds, defense corridors, and academic partnerships. These hubs must enable shared resources to reduce capital burn.
- Provide Anchor Customers and Contracts
Government ministries—like ISRO, DRDO, and Railways—must onboard Indian deep-tech products through fast-track procurement. This creates demand and showcases credibility.
- Create Talent Development Programs
Introduce deep-tech focused modules in engineering curricula, offer paid fellowships, and support early researchers through fellowships and grants. A strong talent pipeline ensures a steady flow of founders and engineers.
- Simplify Regulations and IP Filing
Regulatory simplification, faster patent filing, and cross-border R&D collaborations can accelerate product development. India must protect and promote deep-tech IP created within its borders.
Conclusion
India cannot lead the next era of innovation with just delivery apps and lending platforms. It needs more deep-tech startups that combine science, ambition, and resilience. These ventures will solve India’s deepest challenges, protect its sovereignty, and ensure it stays at the forefront of global innovation.
By funding founders who think long-term, nurturing research-to-product pipelines, and aligning government priorities with startup growth, India can build a world-class deep-tech ecosystem. The foundation exists. Now it’s time to scale.
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