India is stepping up efforts to build homegrown advanced technologies as global competition intensifies, with plans to make $25 billion available for deep tech investments and reduce reliance on foreign technology.
Over the past decade, India invested $11.6 billion in deep tech, Rajat Tandon, president of the Indian Venture and Alternative Capital Association (IVCA), said. The government has now committed $11 billion through the Research Development Infrastructure Fund, which is expected to attract matching investments from venture capital and private equity fund managers. An additional $3 billion to $4 billion could bring the total available funding to $25 billion.
Deep tech includes startups working in artificial intelligence, semiconductors, advanced manufacturing, drones and space technology. Experts say geopolitical tensions have made investment in these areas “very critical”. While China and the US lead the global AI race, India remains cautious about Chinese technology, and US export restrictions raise concerns about continued access to foreign technologies.
“Tariffs from the U.S. actually help this [Deep Tech] segment a lot,” said Anandamoy Roychowdhury, managing director of Crane Venture Partners. He added that India needs local companies because “important technology can get cut off at any point.”
These concerns were highlighted in June when Anthropic reportedly disabled access to its Fable 5 and Mythos 5 models for foreign nationals, following a US government export-control directive.
Investors attending SuperReturn Asia said India’s deep tech ecosystem remains at an early stage but has the talent and ideas to build global companies. Shweta Rajpal Kohli, president and chief executive of Startup Policy Forum, described a “dramatic acceleration of innovation”, with some startups moving from prototypes to “real commercialization.”
Earlier this year, AI coding startup Emergent, space technology company Skyroot and sovereign AI company Sarvam became unicorns after their valuations crossed $1 billion in fundraising rounds.
Roychowdhury said, “I feel like a kid in a candy store,” while describing India’s investment opportunities. Around 80% of his $150 million Asia-Pacific fund is currently concentrated in India.
An IVCA survey of 100 funds found that 9 out of 10 were investing in deep tech startups. In 2025, the sector attracted nearly $3 billion, its highest-ever funding, despite a decline in overall Indian startup funding. However, this remained far below the $136 billion raised in the US.
Limited domestic capital remains a major challenge for Indian startups pursuing long-term innovation. Tandon said only 2% of people in India can sign investment “checks above $10 million”, stressing the need for high-net-worth individuals and family offices to increase their participation.
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