The central government is set to launch the second leg of the Startup India programme on January 16, 2024, with a significant emphasis on deeptech firms. According to officials cited in an ET report, the focus areas for these firms will include semiconductor chips, quantum computing, artificial intelligence, and cybersecurity.
Initiated on January 16, 2016, the Startup India programme aims to create a robust ecosystem fostering innovation and startups in the country, contributing to sustainable economic growth and generating substantial employment opportunities. The upcoming phase is anticipated to provide increased support for startups, including stable policies and taxation, improved valuation norms, and enhanced research and collaboration opportunities with both industry and academia.
The emphasis on deeptech firms aligns with the government’s ongoing efforts to boost growth in this sector. The Draft National Deep Tech Startup Policy (NDTSP), released for public consultation on July 31, 2023, and a draft Cabinet note for the Deep Tech Startup Policy prepared by DPIIT in December 2023, reflect the government’s commitment to strengthen innovation and research and development in crucial sectors like Industry 4.0.
Inc42 data reveals a significant surge in deeptech startups in India from fewer than 100 before 2014 to over 400 startups between 2014 and 2023. The ecosystem has become more structured, encompassing sub-sectors such as defence tech, dronetech, spacetech, IoT & hardware, and robotic process automation. These startups leverage advanced technologies like AI, AR, VR, cloud computing, ML, big data analytics, robotic process automation, Gen AI, and more to address complex global problems.
Despite ongoing funding challenges, the deeptech sector has continuously grown, with startups raising $496 Mn in 2023 compared to $397 Mn in 2022, according to Inc42’s latest “Indian Tech Startup Funding Report 2023”. Between 2014 and 2023, deeptech startups in India have secured over $1.5 Bn in funding across 343+ deals.
