The draft NDTSP 2023 at present is a strategic and well-thought-out policy aimed at fostering the growth and sustainability of deeptech startups
It aims to help startups overcome challenges relating to funding, access to the right talent, and scaling their research and development operations
As the policy moves from a draft to implementation, its success will be measured by the tangible impact it has on startups
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India is the world’s third-largest startup ecosystem, with over 3000 deeptech businesses centred on high-tech inventions or scientific advancements in fields such as artificial intelligence and machine learning, big data analytics, IoT, blockchain, and more.
These firms are expanding into disciplines such as agriculture, life sciences, chemistry, aerospace, and green energy, with the goal of reshaping industries through innovative technology solutions.
The National Deep Tech Startup Policy (NDTSP) is a game-changing effort launched by the Government of India to guide innovation, generate economic growth, and promote societal development for such startups.
The strategy seeks to foster innovation by offering incentives such as tax reductions for businesses and encouraging venture capital investments.
Foundational Elements And Prospects
The NDTSP Consortium released the draft policy on July 31 for public consultation, seeking feedback from market stakeholders till September 15. The policy was drafted after extensive consultation with end-users and stakeholders in the deeptech startup ecosystem to identify the existing challenges and priority sectors.
Investors, incubation centres, academia, and individuals and organizations were consulted through thematic focus group discussions and virtual consultations. The draft NDTSP 2023 at present is a strategic and well-thought-out policy aimed at fostering the growth and sustainability of deeptech startups.
It aims to help startups overcome challenges relating to funding, access to the right talent, and scaling their research and development operations.
The policy outlines a vision for the Indian deeptech startup ecosystem, encompassing four key pillars:
- Securing India’s economic future
- Progressing towards a knowledge-driven economy
- Bolstering national capability and sovereignty through the Atmanirbhar Bharat imperative, and
- Encouraging ethical innovation
Some of the key foundational elements of the policy are as follows –
Funding and innovation: The strategy attempts to give financial assistance to deeptech firms through a variety of means such as grants, loans, and venture capital. It also aims to foster innovation by simplifying regulatory processes and encouraging collaboration between academia and industry.
It suggests measures such as a centralised platform, fiscal incentives, specialised financial instruments, and technology impact bonds all aimed at boosting the growth and sustainability of deeptech business.
It also recommends expert panels for economic evaluation and cooperative funding options to enhance technical infrastructure, thereby optimising funding for select startups.
Talent development: Recognising the importance of human resources in the deeptech sector, the policy promotes steps to cultivate a skilled workforce. This includes promoting STEM education, offering training possibilities, and attracting international talent.
Access to advanced infrastructure and technology: The strategy emphasises the importance of deeptech startups having access to advanced infrastructure and technology. It suggests that deeptech incubation centres and testing facilities be established across the country, it also emphasises strengthening the existing tie-ups with IIT and IISc, etc to provide shared infrastructure resources at nominal fees. The policy also provides for the creation of domain expertise for data interpretation through a fee service model as well as network standardisation and field test sites to further facilitate testing of deep-tech startups.
Public procurement and market opportunities: The strategy pushes government agencies to embrace deeptech solutions and opens up new markets for businesses as well as become the first market for such deeptech startups. It also encourages international cooperation and market access.
Intellectual Property (IP) protection: The policy recognises the necessity of IP protection for deeptech businesses. It suggests the establishment of a uniform IP framework and the implementation of strong cybersecurity measures. It further aims to support deeptech startups by building in-house capabilities and granting government-purpose rights for strategic technologies.
In Conclusion
In essence, the NDTSP emerges as a beacon guiding the trajectory of India’s deeptech startup landscape, laying the groundwork for a future where technological innovation propels the nation to new heights on the global stage.
As the policy moves from a draft to implementation, its success will be measured by the tangible impact it has on startups, the depth of innovation it fosters, and the positive transformation it brings to India’s economic and societal fabric.
The NDTSP seeks to democratise the benefits of deeptechnology by making them available to all levels of society. Through the effective use of deeptech research-driven breakthroughs, the strategy is deliberately structured to boost innovation, spur economic growth, and promote societal development.
Note: We at Inc42 take our ethics very seriously. More information about it can be found here.