The government has taken a major step to strengthen deep-tech startups. Union Minister of Commerce and Industry, Piyush Goyal, announced that the government will provide an additional ₹10,000 crore under the "Fund of Funds" scheme.
The central government has taken a significant step to bolster deep technology startups in the country. Commerce and Industry Minister Piyush Goyal has informed that the government has approved an additional ₹10,000 crore under the Fund of Funds scheme. This amount will be specifically utilized to promote the deep-tech sector. Previously, the government had provided the first installment of ₹10,000 crore in Budget 2023-24, which has now been fully utilized.
Announcement made in Bengaluru, IIT Madras' role is significant
This major announcement was made in Bengaluru, where a special program was organized by IIT Madras and its Alumni Association. During the program, Piyush Goyal stated that the government is working rapidly in the field of deep technology, and this new fund will play a significant role in making India technologically self-reliant.
Support for new technologies
This fund will be used to promote the development of new and emerging technologies. It will focus on crucial areas such as semiconductors, quantum computing, artificial intelligence, green energy, drone technology, robotics, biotechnology, defense sector technologies, and communication technologies. The government will provide policy-based support to further innovation and research in these areas.
Guidelines being prepared, launch soon
Piyush Goyal mentioned that guidelines for this fund are being prepared and will be formally launched soon. Under this scheme, financial assistance will be provided to startups for research, innovation, and prototype development. Notably, a significant portion of the fund is specifically earmarked for deep-tech startups this time.
Concerns regarding private sector participation
However, amidst this entire endeavor, concerns are being raised regarding the limited participation of private companies in Research and Development (R&D). The government has clarified that it is also trying to involve the private sector in this scheme to promote the deep-tech sector holistically.
#100DesiDeepTechs: Launch of a new initiative
Along with the announcement of the fund, another important initiative has been launched called #100DesiDeepTechs. This is a multi-stakeholder program initiated in collaboration with Startup India, MeitY Startup Hub, and IIT Madras. Its objective is to identify and strategically support the top 100 deep-tech startups in the country.
Applications invited from startups
Under this initiative, applications have been invited from deep-tech startups across the country. Selected startups will get the opportunity to participate in policy discussions with industry experts and government officials. Based on these discussions, a white paper will be prepared, incorporating necessary regulations and suggestions.
White paper to be released at 'Deep Tech Meeting'
A special event called the 'Deep Tech Meeting' will be held soon, where the white paper of this entire initiative will be released. On this occasion, the Deep Tech Policy Research Center of the Startup Policy Forum will also be launched, which will work on the future strategies of this sector.
Investment in deep tech is increasing, figures revealed by report
According to a recent report released by Nasscom and Zinnov, investment in the deep-tech sector in 2024 has seen a 78 percent increase. This figure has now reached $1.6 billion. The report states that supportive government policies, the rapid advancements in technologies like generative AI, and innovations by startups have significantly contributed to this growth.
India in an era of technological change
During the program, Piyush Goyal also stated that India is progressing very rapidly technologically. While major countries around the world are grappling with recession and trade slowdown, India is steadily moving forward on the path of development by adopting new technologies.
