India's deep tech to power $10 trillion economy goal

Bengaluru: As India aims to become a $10 trillion economy, the nation is witnessing a structural shift in its technology ecosystem, moving from software-led innovations to deep-tech-driven advancements, according to a report on Thursday.

India is intensifying its focus on frontier tech innovation, with key government-backed initiatives including the ₹10,000 crore 'Fund of Funds,' India's Semiconductor Mission, and the National Deep Tech Startup Policy, according to a report by 3one4 Capital.

Venture capital investment in deep tech is gaining momentum in India, with early-stage funds increasingly backing startups with scalable, IP-driven business models, leveraging the country's cost advantages and rich engineering talent to outpace global competitors.

With around 125,000 professionals, approximately 20% of the world's semiconductor design engineers, India has established itself as a leading player in the global semiconductor design landscape.

National research programs, university incubators, and corporate R&D investments are strengthening India's talent pool, driving retention and development. This strategic approach to skill-building is paving the way for sustained deep tech growth, supported by a strong pipeline of researchers, engineers, and entrepreneurs, the report mentioned.

“India’s deep-tech sector is no longer a niche—it is maturing into an investment-ready, policy-backed, and globally relevant opportunity. While the foundation is strong, scaling deep-tech innovation into commercially successful, globally competitive businesses will require sustained capital, ecosystem collaboration, and patient execution,” said Pranav Pai, Founding Partner and Chief Investment Officer, 3one4 Capital.

According to Pai, India has reached a critical phase, where concerted efforts from industrial and government stakeholders are accelerating the adoption of transformative technologies. India's success in AI, semiconductors, and clean mobility will hinge on its ability to drive disciplined innovation and demonstrate long-term commitment.

By 2030, a staggering 70% of new commercial vehicles in India are expected to be electric; the key challenges to scale remain charging infrastructure and battery efficiency.

"With $10 billion in government incentives and strategic public-private partnerships, the country is strengthening its fabless design and semiconductor manufacturing ecosystem," said the report.

(inputs from IANS)