India’s Deep-Tech Revolution: Modi’s Strategy Goes Beyond the Obvious

India isn’t just looking ahead—it’s thinking beyond the obvious. When Prime Minister Narendra Modi co-chaired the Paris AI Summit 2025, it wasn’t just another diplomatic gathering. It was a bold declaration to the world: India isn’t just participating in the deep-tech revolution—it intends to ead it.

For some, it may have seemed like just another international summit, the kind where world leaders exchange pleasantries and pose for pictures. But that’s the thing—they fail to see beyond the surface. And this isn’t just a blind spot for political critics. Even the mainstream media, in its rush for clickbait, often misses the bigger picture.

So, was Modi’s presence at the Paris AI Summit merely about securing defense deals with France? Absolutely not. This wasn’t about handshakes and headlines; it was about a decade of groundwork, strategic policymaking, and deep-rooted reforms that have earned India its place in the global deep-tech industry.

The Billion-Dollar Deep-Tech Wave

The numbers tell a compelling story. Between 2014 and 2020, the global deep-tech industry attracted an impressive $113 billion in investments. That momentum surged even further, with a staggering $305.7 billion pouring in between 2021 and 2023, underscoring the sector's rapid growth and increasing global significance.

But here’s where it gets even more interesting—nearly 70% of all deep-tech investments in the last three years have gone into strategic sectors, the backbone of global economic progress. These sectors include artificial intelligence (AI) & automation, health tech, environment tech, industrial & manufacturing, edtech, food tech & agri-tech, space & defense, mobility tech, cybersecurity, supply chain & logistics, and BFSI (banking, financial services & insurance).

This isn’t just investment following a trend. It’s a seismic shift towards innovation that doesn’t just disrupt industries but redefines them—a shift that India has been actively shaping.

A Decade of Vision: How India Got Here

India didn’t land on the global deep-tech stage by chance. This has been years in the making, meticulously planned and strategically executed.

For the past decade, India has been quietly but steadily building its deep-tech foundation. From Digital Public Infrastructure (DPI), UPI, Startup India Mission, India AI, and the One District, One Product (ODOP) initiative, the government has woven together a powerful ecosystem of innovation and investment.

And let’s not forget the role of DPIIT—through a mix of partnerships, policies, and initiatives, it has helped turn India into one of the most attractive destinations for foreign investment.

The Result?

• Record-breaking Foreign Direct Investment (FDI) inflows
• A thriving startup ecosystem
• India’s deep-tech sector booming at an unprecedented pace

This isn’t just governance—it’s a perfectly orchestrated symphony where policy, investment, and execution work in harmony.

If deep tech is India’s rising star, then artificial intelligence (AI) is its brightest beacon. In 2023, India had 3,600 deep-tech startups, raising a jaw-dropping $10 billion across 1,400+ deals. AI dominated, with 74% of new deep-tech startups focused on AI and 86% of funded startups leveraging AI-driven innovations. It wasn’t just about funding—AI shaped India’s intellectual property landscape, accounting for 41% of all deep-tech patent filings. AI isn’t just a trend in India—it’s a revolution.

India’s Deep-Tech Stride Continues: Funding the Next Wave

Recognizing the potential of deep tech, the Indian government is making an unprecedented push to fuel innovation and entrepreneurship. In the Union Budget 2025, the government announced a ₹20,000 crore Deep Tech Fund of Funds to support private sector research and development (R&D) and nurture startups developing cutting-edge technologies.

This initiative will accelerate progress in AI, robotics, blockchain, biotechnology, and quantum computing, solidifying India’s position as a global leader in technological breakthroughs. But the government’s vision doesn’t stop there. Several complementary initiatives have been announced to strengthen India’s deep-tech ecosystem:

• A ₹500 crore Centre of Excellence in AI for Education
• Expansion of the Small Industries Development Bank of India (SIDBI) Fund of Funds for Startups (FFS) by ₹10,000 crore
• The PM Research Fellowship scheme to provide 10,000 fellowships over the next five years
• Enhancement of the Credit Guarantee Scheme, increasing guaranteed coverage from ₹10 crore to ₹20 crore, while moderating the guarantee fee to 1% for loans in 27 focus sectors under Atmanirbhar Bharat

By nearly doubling the existing funding size and enhancing credit guarantees, these initiatives will catalyze private investment and drive even greater momentum in India’s deep-tech sector.

But even the most promising innovations need sustained support. While the National Deep Tech Startup Policy (NDTSP) is a game-changer, ensuring that India’s high-tech ambitions translate into global competitiveness, startups still need robust financial backing to scale.

What’s Next? Stay Tuned for India’s Deep-Tech Stride

Now that TICE has set the stage, we’re diving deeper into India’s deep-tech revolution. Leading up to Startup Mahakumbh 2025, we’ll bring you exclusive insights, expert perspectives, and the most exciting startup stories from India’s AI and deep-tech future.

Stay tuned for our Deep-Tech Stride series.