The Indian government, under the leadership of Rajesh Kumar Singh, Secretary of the Ministry of Commerce and Industry, announced that a policy specifically designed to bolster the development of deep tech companies is nearing completion. This initiative marks a significant step towards supporting the deep tech startup industry. With deep tech startups poised to revolutionize industries through substantial scientific and engineering advancements, this program emerges as a key component of the government’s broader strategy to encourage innovation and entrepreneurship.

The policy announcement was made during the ‘Startup Mahakumbh’ event in New Delhi, where Singh highlighted the government’s commitment to supporting deep tech innovation through the finalization of inter-ministerial discussions. The policy is expected to introduce a dedicated fund of funds, alongside a specialized window for deep tech startups, signaling a robust framework for the sector’s development.

The Nasscom pavilion at the event showcased over 34 deep tech startups, underscoring the vibrant discussions and innovations spanning sectors such as Artificial Intelligence, software-as-a-service (SaaS), agritech, fintech, and more. This initiative reflects India’s position as the third-largest tech startup ecosystem globally, with remarkable growth in deep tech startups from fewer than 100 a decade ago to over 400 between 2014 and 2023.

Investments in the deep tech sector are forecasted to continue their upward trajectory in 2024, driven by advancements in Generative AI and a significant proportion of startup founders integrating AI into their solutions. The evolving ecosystem now includes diverse sub-sectors like defense tech, space tech, and robotic process automation, drawing attention from investors worldwide.

The government’s focus on the deep tech sector is also reflected in the interim budget speech by Finance Minister Nirmala Sitharaman, announcing a new scheme to enhance the sector’s capabilities for defense purposes. Additionally, the policy underscores the inclusivity of the startup ecosystem, with a substantial number of startups emerging from tier two and tier three cities and nearly 45% having at least one woman director on the board.