India’s deep tech startup landscape is witnessing an unprecedented surge in 2025, propelled by visionary government investments and fearless entrepreneurial innovation. The Union Budget 2025–26 marked a turning point—allocating a staggering ₹30,000 crore to catalyze this sector. This includes ₹10,000 crore for a Fund of Funds for Startups and ₹20,000 crore earmarked for frontier technologies such as artificial intelligence, quantum computing, and semiconductors.
At the forefront stands Sarvam AI, championing India’s first homegrown large language model under the prestigious IndiaAI Mission. Backed by the government’s allocation of 4,000 GPUs for six months, this initiative receives an unprecedented computational thrust. Meanwhile, in the quantum frontier, QpiAI has joined forces with L&T-Cloudfiniti to deliver Quantum Computing as a Service (QCAAS)—an alliance poised to redefine the limits of processing power.
Despite persistent challenges—ranging from constrained R&D funding to regulatory bottlenecks—the trajectory is undeniable. These bold initiatives and supportive policies signal India’s resolute ambition to emerge as a global deep tech leader. The shift is no longer about catching up. India is strategically positioning itself to lead the next wave of technological transformation.
In an exclusive conversation with The Interview World at the PRAGATI Founders Forum 2025, hosted by iHub-AWaDH at IIT Ropar, Dr. L Venkata Subramaniam, IBM Quantum India Lead, provides a powerful perspective. He outlines the surging momentum of deep tech startups, identifies critical policy and structural reforms needed to revolutionize India’s research and innovation landscape, and articulates a compelling vision for the ecosystem’s future.
Here are the key insights from his conversation—each one a testament to the deep tech revolution unfolding across India.
Q: How do you view the rise of the startup ecosystem in India, particularly the growing momentum of deep tech startups?
A: India has produced a number of successful unicorns in recent years—but only a handful have emerged from the deep tech space. This imbalance needs urgent correction. Today, supporting deep tech startups isn’t just an opportunity—it’s a national imperative.
Across the globe, leading economies like the United States and China have transformed themselves through relentless innovation. At the heart of that transformation lies deep tech. It has been the engine driving technological revolutions and reshaping their economic landscapes. India must now seize this moment to follow suit—and lead.
One of India’s greatest strengths is its talent pool. Our scientists, engineers, and innovators have long powered research and development in the West. Whether in Silicon Valley or European tech hubs, Indian talent has made a defining impact. However, back home, we’ve struggled to provide these brilliant minds with the right opportunities to thrive. The skills exist—but the platforms for expression and innovation have been lacking.
This is beginning to change. Encouragingly, government bodies such as the Department of Science and Technology (DST) are stepping up. DST is now funding startups working in frontier areas like quantum technologies—among the most complex and promising fields in deep tech. Their support extends up to ₹25 crore per startup, a significant and strategic investment.
Moreover, the private sector is starting to take note. As government agencies demonstrate the willingness to absorb early-stage risk, private players are showing greater confidence in co-investing. In Bengaluru, for instance, dedicated deep tech funds—including a ₹1 billion India fund—are now taking shape.
Momentum is building. What was once a trickle is fast becoming a wave. With the right policies, investments, and continued collaboration between government and industry, India stands on the brink of a deep tech renaissance.
Q: What key reforms and strategic initiatives do you believe are necessary to revolutionize the research and innovation landscape in India?
A: India has always excelled in research. Look at any breakthrough—artificial intelligence, semiconductors, fiber optics—and you’ll find Indian pioneers at the forefront. The father of the Pentium chip, the visionary behind fiber optics—these are our people. However, our persistent challenge lay in converting cutting-edge research into scalable technology. For a long time, our tech industry remained in its infancy.
That landscape is changing. Today, giants like TCS and Infosys are not only well-established but are also gradually transitioning from a service-oriented model to one focused on product innovation. This shift signals a broader transformation—one where we are finally bridging the gap between scientific discovery and technological application.
A powerful case in point is UPI. It’s not just a payments interface; it’s a national innovation that has significantly boosted our GDP. More importantly, it has democratized financial access. Today, even small merchants and farmers participate seamlessly in the digital economy. That’s financial inclusion in action.
This model holds immense potential beyond fintech. We can—and must—replicate it in sectors like agriculture, healthcare, and education. The blueprint exists. The next step is scale.
Q: What specific policy interventions and strategic support mechanisms are needed to strengthen and scale the deep tech ecosystem in India?
A: When it comes to policy, every leading economy—be it China or the United States—demonstrates robust government support. This backing takes many forms: generous tax incentives, seamless incubation support for startups, and plug-and-play models that empower innovators. Entrepreneurs simply enter an incubator, access cutting-edge technology, and integrate their solutions with existing infrastructure to scale rapidly.
We must build such dynamic ecosystems in India. IIT Ropar offers a promising example, but for a country as vast and diverse as ours, one institution is far from enough. We need hundreds of incubators and innovation hubs across the nation. Currently, this critical infrastructure remains inadequate and scattered.
Q: What is your vision for the future of deep tech startups in India?
A: Today, I see a remarkable shift: young people are ready to take risks—something rare just five or ten years ago. This willingness to embrace uncertainty is the single most crucial ingredient for innovation. It outweighs even money and mentorship. Without risk-takers, no breakthrough is possible. Fortunately, that spark has arrived.
Now, we must mobilize venture capitalists, strengthen policy frameworks, and expand incubators and mentorship programs. These elements will provide the essential support system for young innovators to scale and thrive. Encouragingly, the green shoots of this ecosystem are already visible. This momentum has begun, and once it gains full force, nothing can stop it.
I am optimistic about the future. The next wave of unicorns will emerge from deep tech—groundbreaking technologies driven by fearless young entrepreneurs.
