In a landmark move to bolster India’s technology leadership, the government has officially launched a ₹10,000 crore Deep Tech Fund aimed at accelerating the growth of homegrown innovation in strategic and emerging technologies. This initiative is set to reshape India’s startup ecosystem by channeling capital into deep tech areas such as artificial intelligence, quantum computing, robotics, semiconductors, space technology, and biotechnology—sectors that are often underserved by traditional venture capital due to their high-risk, long-gestation nature.

Announced in the Union Budget 2024–25 and now operationalized under the Ministry of Commerce and Industry, the Deep Tech Fund will be administered through a Fund of Funds mechanism by the Small Industries Development Bank of India (SIDBI). The initial corpus of ₹2,000 crore has already been sanctioned, and the fund will operate by investing in SEBI-registered Alternative Investment Funds (AIFs) that, in turn, will back early-stage deep tech startups. This layered structure is designed to ensure efficient capital allocation and professional fund management, encouraging co-investments from private sector players and institutional backers.

Commerce and Industry Minister Piyush Goyal emphasized the critical role of the fund in enabling India to leapfrog into global leadership across advanced technologies. He noted that deep tech startups face unique challenges—such as higher R&D expenses, longer product cycles, and complex regulatory environments—that require patient capital and long-term strategic support. The fund aims to close this financing gap while also promoting indigenous intellectual property creation and technology sovereignty.

Several domestic venture capital firms with a focus on science and innovation—such as Blume Ventures, Bharat Innovation Fund, Chiratae Ventures, and Omnivore—are expected to receive backing through this initiative, thereby increasing their ability to support disruptive innovations from idea to commercialization. The fund is also aligned with India’s national goals under the Atmanirbhar Bharat (self-reliant India) mission and Digital India, where deep tech solutions are seen as critical enablers of economic transformation, national security, and public service delivery.

The launch of the Deep Tech Fund comes at a time when India’s startup ecosystem is maturing, with over 100,000 startups and more than 110 unicorns, yet relatively few are operating in high-impact tech sectors. Government data indicates that less than 1% of Indian startups fall under the “deep tech” category—a statistic the fund aims to change. By supporting founders working on core research, hardware innovation, and next-gen computing models, the government hopes to stimulate a new wave of tech entrepreneurship that goes beyond app-based services and e-commerce.

Industry bodies have widely welcomed the initiative. The PHD Chamber of Commerce and Industry has called it a “game-changer” for the innovation economy, stating that the fund has the potential to propel India into the league of nations leading frontier tech development. Analysts believe that the initiative will also encourage greater collaboration between startups, academic institutions, and corporate R&D labs, creating a more robust and self-sustaining innovation ecosystem.

Looking ahead, the success of the fund will depend on its ability to identify visionary founders, attract qualified fund managers, and foster outcome-oriented research. Transparency, sectoral focus, and alignment with global technology trends will be critical to ensuring that public capital is deployed effectively.

India’s ₹10,000 crore Deep Tech Fund is more than a financial instrument—it is a strategic blueprint to ensure that the next era of global technological leadership has Indian innovators at its core. With global interest in AI, quantum, and cybersecurity intensifying, this fund may well be the spark that unlocks India’s potential as a deep tech powerhouse for decades to come.