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Deep Tech Policy to Practice: Industry's Crucial Role in Building India's Innovation Engine
Deep Tech Policy to Practice: Industry's Crucial Role in Building India's Innovation Engine

February 21, 2024

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As per Nasscom’s DeepTech Report, there are 3200+ DeepTech startups in India as of Jan 2023 with 78% of them in the B2B space. In 2023, DeepTech startups in India have raised USD 500+ Mn. 25% of the tech start-ups founded in 2023 were leveraging DeepTech, compared to ~12% in the last 2 years.India

But deeptech is not limited to chatgpt, AI-generated music and deep fakes. DeepTech startups like Pixxel, Agnikul and Ananth Technologies contributed to ISRO’s Chandrayaan 3 mission. Deeptech startups are working on Manufacturing, health, automotive and fintech use cases as well.                          

NDTSP: A Closer Look

In 2023, a draft of the National Deep Tech Startup Policy (NDTSP) which has been published by the Office of Principal Scientific Advisor to the Government of India, aims to address the challenges confronting deep tech startups through definitive policy interventions to create a conducive ecosystem Over 200 experts helped shape this crucial roadmap for India's tech future. On September 22, 2023, nasscom submitted its feedback to the Office of the Principal Scientific Advisor to the Government of India, on the draft NDSTP. The submission document can be accessed from here.

Nasscom recognises that the industry’s role will be crucial in the successful implementation of the NDTSP, once the policy is finalised. With this background, nasscom organised a roundtable session titled “Industry’s role in effective implementation of the National Deep-Tech Start-up Policy” at nasscom Future Forge on 8th November 2023. The roundtable saw participation from over 20 industry leaders and experts, including venture capital firms, deep-tech start-ups that have previously benefitted from government initiatives, leaders of start-up programmes being run by the industry etc. The roundtable saw enriching discussions on the industry’s interest and intent in collaborating with the government in implementing the NDTSP.

Industry's Crucial Role:

  1. Enabling enterprise-startup Connect: Enabling connect between deep-tech startups and corporates would help in promoting the adoption of DeepTech Startup solutions to sustain them, given that DeepTech startups are capital intensive and revenue from enterprises can be significant for the same. The following steps can be taken:
  • Propose guidelines for establishing filtering criteria based on startupcorporate - startup connect maturity to ensure effective collaboration.
  • Establishment of a portal to publish use cases developed by startups, along with a mechanism for cleaning and refining these use cases.
  • Advocate for pilot projects with corporates in sectors like banking and manufacturing to test and implement deep tech solutions.
  • Encourage enterprises to sponsor promising startups to accelerate technology development.
  • Emphasize the need for sectoral focus in deep tech, with forums and use cases tailored to India's strengths and priorities.
  1. Patient Capital: is important for Nurturing Research, Development & Innovation and Facilitating access to funding:
  • Address the challenges of funding availability for deep tech startups, particularly in terms of patient capital and working capital for priority sectors.
  • Propose strategies to attract investments from corporate giants encouraging them to allocate a portion of their R&D budgets to support deep-tech startups.
  • The success of initiatives like BIRAC and IDEX can be a blueprint for more initiatives across different sectors, driven by the industry.
  • Propose an escrow mechanism to facilitate the safe sharing of information and collaboration between startups and corporates.

Nasscom's DeepTech Journey:

As an Industry body, nasscom has been active in building and supporting the Indian Tech ecosystem for 3 decades. Since 2013, through initiatives like Nasscom Industry Partnership Program (NIPP), CoEs in IoT & AI, DeepTech Club, Nasscom Future Forge and more; nasscom has impacted more than 10000 Tech startups in India and supported them with Enterprise Connect, Investor Access, Mentoring, Showcase Opportunities, Global immersions, and other resources that are helpful for founders in their Startup Journey.

India's DeepTech Future: Collaborate & Innovate!collab

As we transform nasscom deeptech, we aim to drive the development of DeepTech products across the Indian Tech ecosystem and enable it to compete on a global scale. We are actively collaborating with the industry to arrange the convergence of the ecosystem, establishing a structured avenue for the provision of patient capital support to DeepTech startups. Nasscom will work with the industry on inputs shared for enabling Enterprise-Startup Connect and Patient Capital through its Nasscom DeepTech initiative.

India stands at the brink of a transformative leap, transitioning toward a formidable position, leveraging innovative technologies like Quantum Computing, AI, and more. This pivot towards deep tech marks a significant stride as India aims to revolutionize sectors such as finance, infrastructure development, agriculture, and other vital domains, propelling the nation into a new era of innovation and progress. Visit our website to learn more: https://bit.ly/46vzkfV  


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