New Delhi, Oct. 9 -- The Indian deeptech sector that had been simmering in the background has now assumed centre stage. The latest sunrise sector, encompassing everything from AI (Artificial Intelligence), biotech, spacetech to defence and semi-conductors, is being welcomed with much fanfare. There is government backing, private sector interest, and a host of dynamic startups propounding pathbreaking innovation. The deeptech sector has recently been particularly active; over 85 per cent of its total USD 11.4 billion funding garnered since 2015 has been raised in just the last six years. And while Bengaluru continues to dominate the sector, underdogs of the deeptech ecosystem are surfacing in Ahmedabad, Kochi, and Kolkata, as per the Bharat Deeptech Report 2026 released by industry body, Indian Venture and Alternate Capital Association (IVCA).
Unless you're living under a rock, you'd know that the euphoria surrounding the deeptech sector is a global phenomenon. And as with many trends in the contemporary world where India competes and often leads, deeptech is among the foremost. The sector is also at a pivotal point where the funding momentum must translate into business viability and scale. And though there are important challenges strewn in its wake, the atmosphere remains collaborative and supportive. That's a great place to start, and here's where we go next.
The various government grants and venture capital (VC) funds have ignited the fire but to keep it going, these startups require patient money and risk capital at various stages. The Bharat Deeptech Report also notes this funding gap between seed funding and Series B/C, which often tips over a startup into the valley of death. We are gungho about Indian innovation but let's humbly accept that we are still playing catch-up on several fronts. Smoothening out supply-chain logistics on the ground, encouraging home-grown ancillary industries that feed deeptech companies, as well as easing obstacles as simple or complex as import and customs, remain real problems on the ground. There is also the need for trust - if foreign governments are quickly able to accept solutions proffered by Indian startups, why do we hesitate? Sure, it will take a rigorous amount of rejigging of government procurement systems, but once done, the path to validation and eventually scale is that much closer for the startups. The government as the "first-customer" not only supports the startup but also gives a stamp of credibility to its product. The US, China, and Israel have been proactively identifying and buying emerging tech. The Indian government is encouraging public procurement through the National Deeptech Startup Policy at the central level while the Karnataka government is showcasing a "government-first" agenda at the state level.
There still remain some bones of contention. For instance, we cannot keep looking to governments to solve everything. India still remains one of the few super-powers whose R&D (research and development) continues to be primarily driven by government funds. Our deployment towards R&D is a meagre 0.84 per cent of our gross domestic product (GDP), and while that's been a legacy problem, the resolution can't come from the government alone. Businesses in India contribute only 41 per cent to the nation's R&D spends compared to 77 per cent in China, 75 per cent in the US, and 79 per cent in South Korea. There has been a genuine desire to boost innovation coming in from the corporate world outside India; that eagerness needs to be seen here as well.
These are exciting times for the deeptech sector with a purported USD 25 billion fund pool taking shape in the wings. But capital is just one of the many requirements of a self-reliant system that needs to be built in order to sustain the current and future crop of startups. Many may still consider this a drop in the ocean compared to the US's deep pockets (USD 136 billion of VC funding mopped up in 2025 alone). But at least we have started and more capital may soon find its way into the sector. As we step on the pedal, speed will be of essence here - easier regulations, receptive government policies, and sovereign co-investment plans that enable steady capital and fund scale. But in all of that breathless tempo, we will also have to remain conscious of the environmental cost that some of these sectors bring and actively find ways to offset it. Unfortunately, that conversation remains on the sidelines. The road to Viksit Bharat will have to be a path that's not just full of good intentions but also paved by sustainable growth.
Views expressed are personal. The writer is an author and media entrepreneur
Published by HT Digital Content Services with permission from Millennium Post.