India's $25 Billion Investment Move for Deep Tech
Aiming to reduce external dependence in artificial intelligence and space technologies, the country is establishing a massive fund to strengthen its domestic ecosystem.
In an effort to reduce foreign dependence in the global technology race with the U.S. and China, India is preparing a $25 billion fund to support startups in artificial intelligence, semiconductors, and space technologies.
Scope and Objectives of the Fund
India has taken action to support startups in the deep tech sector, which encompasses artificial intelligence, semiconductors, advanced manufacturing, drones, and space technologies. The massive budget to be created aims to reduce the country's dependence on frontier technologies from abroad.
Financial Resources of the Investment
According to Rajat Tandon, president of the Indian Venture and Alternate Capital Association, $11.6 billion has been invested in deep tech over the past decade. Now, under the Research and Development Infrastructure Fund, the government is committing $11 billion, which will be matched by venture capital and private equity fund managers. With an additional three or four billion dollars, a total resource of $25 billion will be provided.
Geopolitical Risks and Domestic Capacity
Experts point out that increasing geopolitical tensions and export restrictions from the U.S. make relying on foreign technology risky. This situation is prompting India to develop its own domestic capabilities and strengthen its internal market.
Status of Startups and Future Challenges
Leaders at the SuperReturn Asia summit emphasized that Indian deep tech companies are growing and that many firms have recently reached unicorn status. Despite this, certain challenges regarding the availability of domestic capital for scaling these investments continue to persist.