Bengaluru, Mar 6: As the nation moves towards becoming a $10 trillion economy, India is undergoing a structural shift from a software-led technology ecosystem to one driven by deep-tech innovations, a report said on Thursday.

The government-backed initiatives such as the Rs 10,000 crore ‘Fund of Funds’, India’s Semiconductor Mission (ISM), and the National Deep Tech Startup Policy (NDTSP) demonstrate an increasing commitment to fostering Frontier Tech innovation and commercialisation, according to the report by 3one4 Capital.

Venture capital participation in deep tech is on the rise in the country, with early-stage funds backing scalable, IP-driven startups, and India’s cost advantage and engineering talent offering a unique edge over global markets.

India is a major player in the global semiconductor design space, employing about 20 per cent of the world’s semiconductor design engineers, approximately 125,000 professionals.

National research programmes, university incubators, and corporate R&D investments are strengthening talent retention and development. With strategic skill-building, India is ensuring deep tech growth backed by a strong pipeline of researchers, engineers, and entrepreneurs, the report mentioned.

“India’s deep-tech sector is no longer a niche — it is maturing into an investment-ready, policy-backed, and globally relevant opportunity. While the foundation is strong, scaling deep-tech innovation into commercially successful, globally competitive businesses will require sustained capital, ecosystem collaboration, and patient execution,” said Pranav Pai, Founding Partner and Chief Investment Officer, 3one4 Capital.

With industrial and government stakeholders actively fuelling adoption, India is in a pivotal phase — one where disciplined innovation and long-term commitment will define its leadership in AI, semiconductors, and clean mobility over the next decade, Pai noted.

With 70 per cent of new commercial vehicles in India projected to be EVs by 2030, the key challenges to scale remain charging infrastructure and battery efficiency.

"With $10 billion in government incentives and strategic public-private partnerships, the country is strengthening its fabless design and semiconductor manufacturing ecosystem," said the report.

(IANS)

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