India is a growing hub of innovative deep-tech startups

‘Deep-tech is a key differentiator for India’

By Shankar Krishnan --
Wednesday, 16 Nov, 2022

How can startups establish India as a deep-tech hotspot ?

With the rise of modern B2B corporate software businesses and B2C / B2B2C startups over the last 5-7 years, the Indian deep-tech ecosystem has grown significantly, with over 3000 deep-tech startups in India as of 2021, growing at a staggering rate of 53?GR in the last 10 years. The ecosystem has fortified the country’s job creation capacity with over 4000 people being employed across 14 potential deep-tech unicorns and expected to increase by 2X in headcount by 2026.

Deep-tech startups are creating solutions from smart manufacturing to reliable healthcare, which are helping in achieving sustainable goals and solving global problems, not only in India but also in overseas markets such as the United States, Europe, and Japan. Over 500 inventive deep-tech startups are creating products and solutions with the potential to develop new intellectual properties, backed by scientific advances and fundamental research, helping establish India as a deep-tech hotspot.

What are the initiatives under way that promote deep-tech startups?

The government has expressed interest in advancing the usage of deep-tech solutions and fostering businesses by taking initiatives to support emerging tech startups and provide a platform to deep-tech startups to explore, innovate, scale and solve for challenges of the future.

Among the initiatives are the Atal New India Challenge which has been launched under the Atal Innovation Mission (AIM) of the Niti Aayog, with an objective to serve as a platform for the promotion of Innovation Hubs, Grand Challenges, startup businesses, and other self-employment activities, particularly in technology driven areas. Additionally, Nasscom’s Deep Tech Club (DTC) 2.0 is aimed at scaling the impact to over 1,000 firms that are leveraging technologies such as AI, ML, Internet of Things, robotics, and blockchain.

Which are the sectors that are leveraging deep-tech?

Sectors like healthcare, BFSI, defence, space, and education are leveraging deep-tech to introduce innovative solutions not only for their customers but also for their own operations like automation and cyber security. Many Indian startups such as Asteria Aerospace, CRON System are leveraging technologies such as drones, robotics and AI for enhancing defence efforts. In terms of top adopters, one-third of the deep-tech startups are within the enterprise tech and BFSI sectors.

BFSI startups are leveraging technologies such as Big Data and analytics, and blockchain for accurate data assessments, data security, transaction immutability, and transparency. Healthtech startups are shifting focus toward personalised and remote healthcare utilising smart wearables, remote screening, and AI diagnosis. Apart from healthcare and banking, we witness deep-tech presence in new verticals like agritech, environment tech, aviation, maritime & defence, and life sciences.

What are the unique challenges faced by them?

Funding is one challenge wherein less than 20% of startups received funding; the number is lower for deep-tech startups. In fact, we have witnessed a low utilisation of government funds as well as a lack of domestic capital for such startups. Talent and market access, research guidance, investors’ understanding of deep-tech, customer acquisition and cost for talent are the major challenges faced by them.

Source: The Financial Express

‘Deep-tech is a key differentiator for India’. <big>How can startups establish India as a deep-tech hotspot ?</big>

<hr>
<big>With the rise of modern B2B corporate software businesses and B2C / B2B2C startups over the last 5-7 years, the Indian deep-tech ecosystem has grown significantly, with over 3000 deep-tech startups in India as of 2021, growing at a staggering rate of 53?GR in the last 10 years. The ecosystem has fortified the country’s job creation capacity with over 4000 people being employed across 14 potential deep-tech unicorns and expected to increase by 2X in headcount by 2026.</big>

<big>Deep-tech startups are creating solutions from smart manufacturing to reliable healthcare, which are helping in achieving sustainable goals and solving global problems, not only in India but also in overseas markets such as the United States, Europe, and Japan. Over 500 inventive deep-tech startups are creating products and solutions with the potential to develop new intellectual properties, backed by scientific advances and fundamental research, helping establish India as a deep-tech hotspot.</big>

<big>What are the initiatives under way that promote deep-tech startups?</big>

<hr>
<big>The government has expressed interest in advancing the usage of deep-tech solutions and fostering businesses by taking initiatives to support emerging tech startups and provide a platform to deep-tech startups to explore, innovate, scale and solve for challenges of the future.</big>

<big>Among the initiatives are the Atal New India Challenge which has been launched under the Atal Innovation Mission (AIM) of the Niti Aayog, with an objective to serve as a platform for the promotion of Innovation Hubs, Grand Challenges, startup businesses, and other self-employment activities, particularly in technology driven areas. Additionally, Nasscom’s Deep Tech Club (DTC) 2.0 is aimed at scaling the impact to over 1,000 firms that are leveraging technologies such as AI, ML, Internet of Things, robotics, and blockchain.</big>

<big>Which are the sectors that are leveraging deep-tech?</big>

<hr>
<big>Sectors like healthcare, BFSI, defence, space, and education are leveraging deep-tech to introduce innovative solutions not only for their customers but also for their own operations like automation and cyber security. Many Indian startups such as Asteria Aerospace, CRON System are leveraging technologies such as drones, robotics and AI for enhancing defence efforts. In terms of top adopters, one-third of the deep-tech startups are within the enterprise tech and BFSI sectors.</big>

<big>BFSI startups are leveraging technologies such as Big Data and analytics, and blockchain for accurate data assessments, data security, transaction immutability, and transparency. Healthtech startups are shifting focus toward personalised and remote healthcare utilising smart wearables, remote screening, and AI diagnosis. Apart from healthcare and banking, we witness deep-tech presence in new verticals like agritech, environment tech, aviation, maritime & defence, and life sciences.</big>

<big>What are the unique challenges faced by them?</big>

<hr>
<big>Funding is one challenge wherein less than 20% of startups received funding; the number is lower for deep-tech startups. In fact, we have witnessed a low utilisation of government funds as well as a lack of domestic capital for such startups. Talent and market access, research guidance, investors’ understanding of deep-tech, customer acquisition and cost for talent are the major challenges faced by them.</big>

<big>Source: The Financial Express</big>