India is home to the third largest startup ecosystem in the world, with more than 10,000 startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT). Among them, a significant number are working on deep tech solutions that have the potential to transform various sectors and address some of the most pressing challenges facing the country.
Deep tech refers to advanced and cutting-edge technologies that are based on significant scientific and engineering innovations. Examples of deep tech include artificial intelligence, machine learning, blockchain, biotechnology, nanotechnology, quantum computing, etc. These technologies require high levels of research and development (R&D), intellectual property (IP) protection, funding, infrastructure, human resources, and regulatory support.
However, deep tech startups face many unique and complex challenges that hinder their growth and innovation. These include:
- Lack of adequate R&D infrastructure and facilities
- Difficulty in accessing funding from traditional sources due to high risks and long gestation periods
- Limited availability of skilled talent and mentors
- Low awareness and adoption of deep tech solutions by customers and stakeholders
- Regulatory hurdles and uncertainties in standards and certifications
To address these challenges and create a conducive ecosystem for deep tech startups to thrive, the Government of India has launched the draft National Deep Tech Startup Policy (NDTSP) for public consultation. The policy is an initiative of the National Consortium, an apex-level body set up by the Prime Minister’s Science, Technology, and Innovation Advisory Council (PM-STIAC) and chaired by the Principal Scientific Adviser to the Government of India.
The policy aims to:
- Strengthen the research and innovation ecosystem leading to scientific breakthroughs and technological advancements
- Bolster the Indian IP regime and make it competitive for international deep tech startups to establish and operate their entities in India
- Facilitate access to diverse sources of capital via specialized funding programs, increased venture capital investments and tailored government financial support avenues
- Enable shared infrastructure and resource sharing among deep tech startups, incubators, accelerators, research institutions, industry associations, etc.
- Create conducive regulations, standards, and certifications for deep tech startups to operate in a transparent and predictable manner
- Attract human resources and initiate capacity building programs for deep tech startups, researchers, mentors, investors, etc.
- Promote procurement and adoption of deep tech solutions by government agencies, public sector enterprises, corporates, etc.
- Ensure policy and program interlinkages among various government departments, ministries, schemes, initiatives, etc. related to deep tech startups
- Sustain deep tech startups by providing them with continuous support and guidance throughout their lifecycle
The policy is based on nine priority areas that cover various aspects of the deep tech startup ecosystem. Each priority area has specific objectives, interventions, outcomes, indicators, timelines, responsibilities, and budgets. The policy also proposes establishing Special Innovation Zones (SIZs) that will act as incubation centres for deep tech startups. The policy also plans to set up a dedicated fund for supporting deep tech startups.
The policy is expected to have a positive impact on the Indian economy and society by:
- Boosting India’s knowledge-driven economy and enhancing its global competitiveness
- Creating new industries and generating employment opportunities
- Solving India’s most pressing societal issues such as healthcare, education, agriculture, energy, environment, etc.
- Fostering ethical innovation and ensuring national security and sovereignty
The policy is open for public feedback till August 31st 2023. You can view the draft policy here and share your comments here.
The policy is a welcome step towards creating a vibrant and robust deep tech startup ecosystem in India. It will enable India to leverage its strengths in science and technology to become a global leader in innovation. It will also help India achieve its vision of becoming a $5 trillion economy by 2024.
Sources:
1: Draft National Deep Tech Startup Policy (NDTSP)
2: Centre releases draft National Deep Tech Startup Policy
3: Govt launches draft policy to address issues of deep tech startups
4: Indian Government Unveils Draft National Deep Tech Startup Policy to Boost Deep Tech Startups
5: Draft National Deep Tech Startup Policy (NDTSP)