In 1957, the Soviet Union launched Sputnik, the first human-made satellite, into orbit. It jolted the US into action. President Dwight D Eisenhower called on American industries and universities to prepare for “the stern demands” of an era of deep scientific exploration. Much has changed since then. Yet, history has a habit of rhyming.
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Today, in a world moving towards reusable rockets, generative AI, humanoid robots, fusion tech and flying taxis, every nation is gauging its hold on deep scientific and technological innovations. Commerce Minister Piyush Goyal’s recent statements on the shortage of deep-tech startups should be seen in this light. It’s tough love — a bugle call to action, not unlike Eisenhower’s.
Deep tech is not just a buzzword; it’s rooted in scientific and technological breakthroughs. It’s the backbone of transformative industries. It is what leads to achievements such as a rocket booster being caught mid-air by mechanical chopsticks; or a seemingly simple chatbot that can produce code, poems, and a complete business proposal; or a miraculous drug that can tackle everything from obesity to depression.
This is a field that’s currently being led by the US and China. According to a recent analysis by the World Intellectual Property Organisation, China filed over 38,000 generative AI patents between 2014 and 2023 — six times more than the US. A study by the Australian Strategic Policy Institute (ASPI) shows China leads globally in 57 out of 64 critical technologies.
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Annually, the US, the UK, Germany and Japan spend over 3 per cent of their GDP on R&D. China allocates just over 2.68 per cent; India spends under 1 per cent. But it isn’t all bad. Advancements in deep tech are decadal projects, and India is stepping up — albeit belatedly.
Audacious entrepreneurs are building space launch vehicles (Skyroot, Agnikul), flying taxis (Sarla, ePlane, Blu-J), robotics (Addverb, CynLR, Perceptyne), satellites (Pixxel, Dhruva Space, Digantara), gene editing solutions (CrisprBits), semiconductors (Mindgrove), quantum solutions (Qnu Labs), defence technologies (ideaForge and EyeRov), and electric mobility solutions (Ola, Ather, Ultraviolette). These are the bold bets that could rewrite history. Skyroot’s first rocket launch in 2022, Vikram-S, opened private space launches in India. A similar shift is playing out in India’s defence tech, electric and urban mobility sectors.
Deep tech innovations like Gen AI could add $1 trillion to India’s GDP by FY30. Former NITI Aayog CEO Amitabh Kant has noted that the cascading effect of these technologies would be critical for India to become a developed economy. But deep tech is not just an economic driver; it is also critical for self-reliance. Securing our capacity to develop and leverage such innovations provides a technological bulwark against geopolitical uncertainties and supply chain vulnerabilities.
There are gaps India needs to address. Building hard things takes time — longer than venture capital timelines allow for — creating a “long gestation conundrum”. Then there is India’s talent paradox: Only a fraction of engineers specialise in frontier technologies. But these are solvable problems.
The US is facilitating a $500-billion AI initiative called Stargate, France is mobilising $112 billion in public and private investments towards AI development. China has unveiled an approximately $138-billion fund focused on accelerating growth in emerging technologies. India is making strategic and foundational strides, too. India Semiconductor Mission (2021) allocated Rs 76,000 crore to build fab capacity and design ecosystems. In 2024, the Union cabinet approved the IndiaAI Mission, allocating Rs 10,371 crore to establish a comprehensive AI ecosystem. The recently announced Rs 10,000-crore Deep Tech Fund of Funds and the Rs 1,000-crore space-tech venture capital fund are aimed at bridging critical funding gaps and catalysing innovation. These initiatives also send a strong signal to the private investment ecosystem that India is committed to playing the long game in advanced technology.
India has also undertaken significant policy reforms across several high-tech sectors to promote innovation and private-sector participation, and boost entrepreneurship and self-reliance. These include the Indian Space Policy, 2023, liberalised Drone Rules, 2024, National Deep Tech Startup Policy (NDTSP) Draft, 2023, and Nuclear Energy Expansion Policy 2024. A closer collaboration between India’s premier universities and research institutes and deep-tech startups is also needed. Educational reforms should focus on building a framework for cutting-edge research.
The NDTSP’s focus on promoting STEM education and offering training possibilities is a good start. India could also take a leaf out of the playbook US federal institutes like Defence Advanced Research Projects Agency and NASA used to encourage bold innovations. The patent approval process could benefit from some rocket speed.
India’s deep-tech programme shouldn’t be seen as an either-or proposition. Quick commerce and other consumer-tech innovations have brought a culture of risk-taking and efficiency to the larger Indian business landscape, and built a network effect of ancillary businesses and employment. For a nation with over 65 per cent of the population under 35, these sectors serve as vital economic and social stabilisers.
Our prosperity depends on our ability to deliver both groceries to homes and satellites to orbit. The bugle has sounded for India’s deep-tech revolution; now is the time to answer it.
The writer is the co-founder and CEO of Skyroot Aerospace
