In a significant step to solidify its position as a global technology leader, the Government of India has allocated an additional ₹10,000 crore (around $1.2 billion) to support deep-tech startups in the country. This fresh funding, announced by Commerce and Industry Minister Piyush Goyal on Friday, follows the full deployment of a similar ₹10,000 crore fund announced in the Union Budget earlier this year.
The move is being hailed as a major push towards nurturing homegrown innovation in sectors such as artificial intelligence (AI), semiconductors, quantum computing, space technology, and electric mobility.
A Renewed Bet on Frontier Technologies
The government’s decision comes at a time when India is rapidly trying to transition from being a global back-office for IT services to becoming a leader in creating new, high-value technologies. The additional ₹10,000 crore will be disbursed through a ‘Fund of Funds’ (FoF) model, where the government invests in professionally-managed venture capital funds, which then back promising deep-tech startups.
“India is serious about claiming its place in the future of technology,” Minister Goyal said while announcing the move. He added that deep-tech would be the backbone of India’s future economy and national security.
This Fund of Funds strategy allows the government to share risk with private investors, encouraging more funding into high-risk, high-potential sectors.
Focus Areas: From Space to Green Energy
The fund will target startups working in some of the most advanced and strategically important areas of technology. This includes semiconductors, drones, electric vehicles (EVs), biotech, robotics, space technology, advanced manufacturing, green hydrogen, quantum computing, defence tech, and next-generation communications.
These sectors are seen as critical for India’s national growth and economic independence, especially amid rising geopolitical tensions and global competition in technology innovation.
Deep-tech investments in India saw a sharp rise in 2024, growing by 78% to reach $1.6 billion. Industry experts believe that this additional government support will accelerate this momentum.
A Strong Policy Ecosystem Takes Shape
The fund is part of a larger policy effort to build a thriving deep-tech ecosystem in India. One key initiative is #100DesiDeepTechs, a program designed to identify, support, and give a policy voice to 100 promising Indian deep-tech startups.
The government also plans to organize regular policy forums under the banner ‘Deeptech Baithak’, bringing together startups, investors, researchers, and policymakers. A white paper on deep-tech policy is currently in the works, expected to be unveiled later this year.
These initiatives aim to reduce the gap between fast-moving startups and often-slow policy regulations, ensuring that India’s laws and funding frameworks keep up with technological innovation.
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What This Means for India’s Innovation Ambitions
For Indian startups, the expanded funding pool means easier access to capital for developing technologies that might otherwise struggle to attract early investment due to high risks and long gestation periods.
For investors, the government’s commitment reduces risk and boosts confidence in deep-tech as a viable and profitable sector.
And for India as a nation, it signals a strategic shift — from being a service provider for global tech giants to becoming a creator of world-class, homegrown innovations in defence, healthcare, energy, and digital infrastructure.
Analysts say this could also help reduce India’s dependence on foreign technologies and position it as a credible competitor to global tech powers like the US and China.