India’s Deeptech Startup Ecosystem Ranks Sixth Globally, Reports Nasscom

By Sunil Sonkar
2 Min Read
India's Deeptech Startup Ecosystem Ranks Sixth Globally, Reports Nasscom

India’s startup ecosystem has grown several folds in recent years. Lately, the country has emerged as a formidable player in the global deeptech landscape. Nasscom-Zinnov study places it at the sixth position worldwide with more than 3,600 startups in this innovative sector. Nearly 500 deeptech startups were launched in 2023 alone. It was a 100 percent increase compared to that of 2022. The surge highlights India’s expanding influence and potential in the deeptech arena.

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Deeptech startups focus on advanced technology areas. It includes artificial intelligence (AI), machine learning, robotics and more such frontier technologies. It is learned that 74% of the new startups in 2023 were centered on AI. It was 62% between 2014 and 2022. The trend highlights India’s strength as a global hub for AI talent.

However, it is to note that India still ranks sixth in the global deeptech ecosystem. The ranking suggests there is room for improvement. It would be better if India can break into the top three. Nasscom Deeptech Head Kritika Murugesan identifies several critical areas that need attention now and these are like access to patient capital, strong R&D partnerships with academia, streamlined government procurement processes and implementation of a comprehensive deeptech policy as well.

The need for patient capital is in demand. Deeptech startups need long gestation periods in the development of the products and scaling the same. Unfortunately, funding for Indian deeptech startups fell by 77% in 2023 compared to 2022. The decline affected both early and late-stage deals. Investors remained cautious thereafter about the extended timelines.

Robust R&D partnerships with academic institutions are also required in fostering the next-generation innovations. Streamlining government procurement processes can also help. Deeptech policy introduced in 2023 is looking ahead to address such challenges.

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