India's Struggles with Supporting Deep-Tech Startups

Why in News?

India’s deep-tech startup ecosystem is experiencing significant growth, with over 3,600 startups established by 2023. However, these startups face substantial challenges, including limited funding, inadequate infrastructure, and a lack of specialized support, which hinder their potential to drive innovation and economic development.

Important Key Points:

Funding Constraints:
- Despite the surge in deep-tech startups, India ranks low in median funding ticket sizes compared to global counterparts.
- In 2023, funding for deep-tech startups declined by 77% compared to the previous year, totaling $850 million.
. Infrastructure and Ecosystem Gaps:
- Deep-tech startups often lack access to costly R&D facilities necessary for prototyping and small-batch production.
- The existing startup ecosystem is skewed towards consumer tech and e-commerce, with insufficient support for sectors like AI, quantum computing, and space tech.
. Government Initiatives:
- The Indian government has launched programs like the National Deep Tech Startup Policy and the Anusandhan National Research Foundation to bolster deep-tech innovation.
- However, implementation challenges and the need for more robust support mechanisms persist.
. Talent and Skill Development:
- There is a pressing need to bridge the knowledge gap between founders and investors, and to develop specialized talent pools in deep-tech domains.