India’s Emerging Deep-Tech Landscape: Government Initiatives and Future Prospects
In a significant move to boost the deep-tech sector in India, Abhay Karandikar, Secretary at the Department of Science and Technology (DST), disclosed that only about 10% of startup funding is currently allocated to deep-tech ventures. This represents a substantial gap in an area endowed with immense potential. Recognizing this, the DST has launched an ambitious ₹1 lakh crore Research and Development (R&D) and innovation (RDI) fund aimed at fostering deep-tech startups engaged in transformative technologies.
The Research and Development Fund: A Game Changer
The RDI fund aims to catalyze innovation in frontier technologies like quantum computing, advanced communications, AI, robotics, and drones. The primary objective is to shift the funding landscape, increasing the share of deep-tech investments from the current 10% to an impressive 30-50% over the next five years. Karandikar noted that private and venture capital investments have been cautious in the deep-tech space due to longer payoff cycles and higher risks associated with these ventures. By addressing these concerns, the fund aspires to encourage more private investment, much like what has transpired in the broader startup ecosystem over the past decade.
Set to become operational in the next two months, the RDI fund represents a strategic attempt to mitigate initial risks. "Once the government mitigates the initial risks, venture capital will follow," Karandikar commented, indicating a hopeful trajectory for deep-tech innovation.
Positioning for 6G: A Bold New Frontier
In addition to boosting startup funding, India is setting an early stage in the global standards for 6G technology. Unlike its late entry into the 5G ecosystem, India is proactively contributing to 6G specifications from the outset. A senior official from the Department of Telecommunications emphasized the country’s potential to play a significant role in terms of standards-essential patents and intellectual property rights (IPRs) related to 6G technologies.
The government-backed Bharat 6G Alliance is pivotal in this initiative, uniting academia, startups, and industry players to advance 6G research and development. This collaborative effort aligns with the International Telecommunication Union’s International Mobile Technology (IMT)-2030 framework, aiming to create a comprehensive communication ecosystem that integrates terrestrial, satellite, and aerial networks embedded with AI and sensing capabilities.
The Infrastructure Overhaul
As India prepares for the rollout of 6G, Karandikar outlined the enormous infrastructural investments required. The transition will necessitate complete upgrades, impacting everything from base stations to individual devices. It is anticipated that standards will be finalized by 2030, setting a clear roadmap for technological advancement over the next decade.
Encouraging Private Investments
While government initiatives play a crucial role, the sector’s ultimate growth relies heavily on private sector involvement. The RDI fund is designed to create an environment where private investors feel more comfortable engaging with deep-tech startups. By reducing initial risks and encouraging innovation, the fund could serve as a catalyst for a wider cultural shift toward embracing high-risk, high-reward ventures.
The Future of Deep-Tech in India
The government’s focus on deep-tech and the significant funding through the RDI initiatives indicate a robust belief in India’s capacity to innovate and lead in global technology sectors. With strategic investments and collaborations, the landscape for Indian startups in deep technologies is set to transform dramatically over the coming years. This initiative not only aims to enhance the innovation ecosystem but also envisions India as a formidable player in the global tech arena.
By nurturing homegrown talent and focusing on groundbreaking technologies, India is not just catching up but is strategically positioning itself to lead in the next wave of technological advancements. Each of these efforts underlines a commitment to fostering an entrepreneurial spirit that can rival the best in the world.