Amitabh Kant says Rs 25,000 Crore deeptech fund key to propelling India’s startup standing

Speaking at YourStory’s TechSparks 2024, India’s G20 Sherpa Amitabh Kant also highlighted the importance of a dedicated Rs 25,000 crore deeptech fund in reinforcing India as a startup hub of the world. It is regarded as a strategic measure in the effort to incubate game-changing innovations and sustain technological development within the nation. 

Impact on Early-Stage Deeptech Startups

The innovation profile of deeptech can help shape a path for these early-stage ventures, as they struggle for funding due to high risk and long wait or return from investments. Most of the funds will go in the form of ready capital thus reducing the overbearing dependence on funding to keep the startups afloat as they optimally work on Research and Development. By having specific financial motivation, the startups can allocate their resources to new technologies and ideas.

This will encourage experimentation and taking of risks which are critical for invention in areas such as artificial intelligence, computing, and biotechnology. Deep technology projects, therefore, come with certain technical and market imperatives. The fund will reduce such risks because the startups will have the capital safety even as they attempt at what would otherwise be considered high-risk projects.

Amitabh Kant said, “The big-ticket thing is a Rs 25,000 crore fund of funds for the deeptech sector. India has a lot of capital; we need not depend on foreign capital. People need to take a little risk along with the venture capital firms in startups. We need Indians to put money into startups—India’s insurance sector and pension funds should contribute after due diligence. We should keep opening up more and more sectors like we’ve done with space, drones, geospatial, and semiconductors. We have become the third-best startup ecosystem; our aim is to be the world’s number one.” 

Quotation Source: YourStory  

Domestic Capital and Strategic Policy Shits

This call to action could not be more on the point as India is beginning its journey toward its quest to minimize its reliance on foreign capital and establish its solid startup ecosystem. In this way, India can ensure a constant inflow of the financial resources necessary for the development of new deeptech by motivating local financial institutions to invest in this sector. 

The Indian startup has already witnessed strategic policy changes in sectors like space, geospatial, and semiconductors. The proposed deeptech fund supports these policy changes and is supposed to put the necessary financial resources to bring domestic startups to high-tech realms. India also currently hosts more than 1600 deeptech startups with a total market capitalization of $14 billion, as stated in a NASSCOM report. One of the key advantages of a dedicated fund is to start and develop rapidly the needed research and development to bring innovations from these startups to the market. 

Deeptech Innovations

Deepteche can solve some of the world’s greatest problems as they are today. The potential applications of deeptech solutions are vast and span numerous industries such as healthcare, agriculture, energy, and transportation. By investing in deeptech, one can align India with twenty-first-century technological solutions and services. 

Conclusion

Amitabh Kant’s pitch for a Rs 25,000 crore deeptech fund is one such major step forward towards making India as technology and innovation powerhouse. This leads to the argument that by mobilizing domestic capital and encouraging risk-taking, India has the potential to develop a deeptech ecosystem. This fund can act as a medium for transforming India into one of the leading players in terms of technology around the world to increase economic development and the quality of life of people across the country.