Adithya Venkatesan

6 days ago

Why is India behind in deeptech: We have Mangalyaan “frugality” hangover


Been diving into the state of deeptech in India lately, and it’s becoming clear:
We’ve overglorified how we reached Mars for less than the cost of a Hollywood movie. And in doing so, we’ve sent the wrong message to builders:

Do more with less. Forever.

That’s not how deeptech works. It lacks the signal that it’s okay to fail in the pursuit of frontier innovation. Most deeptech is uncertain, long-drawn, and capital-hungry. You don’t build the future by rationing ambition.

In the US, government funding drives foundational innovation: from DARPA to the CHIPS Act.
In China, state-led guidance funds and public procurement create the first big customers for deep-tech startups.

India spends just ~0.64% of GDP on R&D, vs ~2.4% China, ~3.5% US.

Even in AI innovation the India IT minister praised DeepSeek's low-cost AI, and compared it how our $1.25 billion bounty is huge. Compare this with $9.3 billion in China and a whopping $109 billion in the US. Again, the same chorus on frugality.

The State’s participation in bolstering deeptech is… well.. poor at best.

The government needs to commit to public procurement in deep‑tech, like China. Let startups serve ministries, PSUs, the defence sector. The China model is fascinating in this regard: big guidance funds, low-interest loans, and R&D deductions tailored for deep‑tech.

I’m convinced that the only way conviction gets built in this sector is when we have strong participation from the State. And when the State understands that failures are stepping stones to success, we attract builders to take bold, audacious bets.

Would love to hear a counter opinion on this. And, oh, please tag your favourite deeptech stratups from India - still blindsided on that one.

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