The government is planning to implement the national deeptech startup policy, under which it will provide long-term funds to companies operating in the sector
The policy also aims to fill the gaps in the intellectual property regime in India
The draft NDTSP, released last year, envisages a minimum grant of INR 2 Cr at the proof-of-concept stage and a minimum of INR 3 Cr grant at the prototype stage
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The Ministry of Commerce and Industry is reportedly planning to roll out the deeptech startup policy to provide long-term funds to companies operating in the sector.
Citing sources, ET reported that the Centre will introduce the policy under an umbrella framework that will serve as a template for both state and startups in the deeptech sector.
The government has identified 9 key priority areas to create a strong deeptech startup ecosystem, which include increasing spending on research and development to nurture innovation in the space, facilitating targeted long-term funding, and filling the gaps in the intellectual property regime in the country.
Other areas in focus include enabling shared infrastructure and resource sharing, creating conducive regulations, standards, and certifications, attracting talent pool and initiating capacity building, promoting procurement and adoption, ensuring policy and program interlinkages and sustaining deeptech startups.
It is pertinent to mention that the government had released a draft National Deep Tech Startup Policy (NDTSP) for public consultation in July. The draft envisages a minimum grant of INR 2 Cr at the proof-of-concept stage and a minimum of INR 3 Cr grant at the prototype stage.
Rajesh Kumar Singh, secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), previously said in March that the government was in the final stages of creating a dedicated policy for deeptech startups.
In her interim budget speech, Finance Minister Nirmala Sitharaman said that a new scheme would be introduced to strengthen the deeptech sector for defence purposes.
Media reports suggest that the government will likely announce the deeptech startup policy in the forthcoming Budget in July.
The development comes at a time when the government is taking proactive measures to spur development of artificial intelligence (AI), semiconductor manufacturing, spacetech and other allied sectors.
In her interim budget speech, Sitharaman also announced a corpus of INR 1 Lakh Cr to provide 50-year interest-free loans for research and development in the sunrise sectors.
As per Inc42 data, India was home to more than 400 deeptech startups in 2023, a jump of 4X from 100 in 2014.
Last year, deeptech startups raised $496 Mn compared to $397 Mn in 2022, as per Inc42’s “Indian Tech Startup Funding Report 2023”.
Overall, between 2014 and 2023, homegrown deeptech startups raised over $1.5 Bn in funding across 343+ deals.
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