What is Deep Tech?

February 8, 2024

India is making a major push to establish itself as a global leader in deep tech – advanced technologies like artificial intelligence, robotics, and quantum computing that have the potential to drive economic growth. With a vast talent pool and growing tech industry, India sees an opportunity to contribute to developing these cutting-edge technologies and benefit from associated economic gains. However, nurturing deep tech requires overcoming key challenges like access to long-term funding. The Indian government is announcing new policies and initiatives aimed at building a supportive ecosystem for deep tech innovation.

What is Deep Tech?

Deep tech refers to pioneering technologies that are still under development but have potential for transformative impact. It encompasses research in fields like nanotechnology, biotechnology, quantum technologies, semiconductors, data science, and 3D printing. Deep tech innovations can provide solutions to global challenges like climate change, food security, infrastructure needs, and cybersecurity. They are expected to drive productivity, economic growth, and job creation. With its engineering talent and tech culture, India aims to be at the forefront of deep tech advancement.

India’s Deep Tech Push

Recognizing deep tech’s importance, India has undertaken several efforts to promote it. This includes creating specialized missions for transformative mobility and battery storage and for quantum technologies. In 2022, India finalized a National Deep Tech Startup Policy to nurture deep tech companies by addressing their unique challenges. This policy aims to incentivize deep tech innovation through long-term funding, stronger intellectual property rights, tax benefits, and fostering talent. Over 10,000 Indian startups working on deep technologies were identified.

Funding: The Big Challenge

Funding research is one of the biggest roadblocks for Indian deep tech advancement. Deep tech projects require substantial investments over long timeframes. However, India’s overall spending on research and development is only 0.65% of GDP, far below the global average of 1.8%. The government is trying to increase private sector participation to boost R&D funding. The recently launched National Research Foundation seeks to build academia-industry linkages to broaden the funding base. The new Rs 1 lakh crore government fund for R&D loans targets deep tech startups and ventures. But more predictable, consistent funding is needed.

Looking Ahead

With the right policies and investments in place, India is optimistic about fostering a thriving deep tech ecosystem. But achieving its deep tech ambitions will require overcoming key challenges like boosting research spending and enabling access to patient capital. How India navigates these obstacles will determine its goal of becoming a global deep tech leader.

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