India's Deep-Tech Initiative & Administrative Obstacles

Concerning Deep Technology

It pertains to innovations based on cutting-edge scientific and engineering advancements like AI, quantum computing, biotechnology, and space technology, highlighting their disruptive characteristics.

It frequently necessitates extensive development periods, significant financial investment, and thorough validation.

Deep tech start-ups stand apart from conventional start-ups mainly due to their technology-oriented focus, extended development timelines, and elevated risk levels.

Conventional start-ups typically depend on innovations in business models, including e-commerce, SaaS, or consumer services.

India's Advantages

Talent Pool: India boasts top-tier engineers and scientists. Numerous international tech companies depend on Indian expertise for fundamental research and development.

India stands third worldwide in scientific research and has risen from 81st to 39th position in the Global Innovation Index.

Cost-Effectiveness: Startups in India can create innovative solutions at reduced expenses, enhancing their appeal for worldwide collaborations.

Government Effort: Programs such as the PLI Scheme for semiconductors and green hydrogen are fostering domestic capabilities.

Challenges & Problems in India’s Deep-Tech Landscape

Bureaucratic Obstacles: India's bureaucratic system, stemming from its colonial past, continues to be a significant challenge, as it was established for regulation rather than creativity.

Delayed Decision-Making: Approvals for R&D, IP submissions, and funding releases are frequently sluggish.

Disjointed Supervision: Deep-tech encompasses several ministries — MeitY, DST, DBT, ISRO, DRDO — resulting in difficulties with coordination.

Risk Aversion: Bureaucrats frequently show reluctance to support experimental technologies due to concerns over audit reviews or potential political repercussions.

Funding Shortfalls & Market Inefficiencies: Deep-tech necessitates enduring investment and extended development times.

CSR Funds Underused: India's ₹15,000 crore yearly CSR allocation has the potential to back strategic technology but is mostly unexploited.

Investor Reluctance: Numerous investors do not possess the technical knowledge or desire for extended risk.

India does not have a specific strategic fund to address this issue. Government initiatives such as IndiaAI and the National Quantum Mission receive less funding compared to their international counterparts.

Talent Exodus & Research Shortage: India generates exceptional engineers and scientists, yet a significant number migrate for improved prospects overseas. National research funds are limited, and connections between academia and industry are still fragile.

Universities are not generating research on a large scale.

The creation of intellectual property is minimal; India frequently acts as the support center for major global technology companies.

GPU clusters and sophisticated computing resources are limited, hindering AI and quantum research.

Legal and Ethical Issues: India's advancement in AI and surveillance technology brings significant concerns regarding privacy and individual freedoms.

The Digital Personal Data Protection Act (DPDPA) has faced criticism for providing extensive exemptions to the government, weakening individual rights.

Surveillance driven by AI lacks adequate proportional protections.

Facial recognition systems are being implemented without strong legal structures.

Citizens endure increased examination while the government benefits from unrestricted data access.

Cultural & Strategic Discrepancy: The technology culture in India frequently emphasizes implementation rather than innovation. Quick commerce and fintech lead the way, while frontier technologies stay largely unexamined.

The Path Ahead

a special "India Strategic Fund" to close the knowledge gap between academia and industry, modeled after US and Israeli models.

India needs to overcome structural inertia, but it has the necessary components—talent, market, and policy momentum. In order to effectively compete with China and the US, it must: a change in culture toward fearless, research-based entrepreneurship; more efficient governance and regulatory changes; stronger ties between industry and academia; significant expenditure on core technologies.