Deep-Tech-Growth Drivers - India

Unleashing the Power of
Deep Tech in India
February 2022
Unleashing the Power of Deep Tech in India
Contents
Executive Summary ............................................................................................................. 3

Introduction ......................................................................................................................... 6
The Deep Tech Landscape................................................................................................... 8
Impact of Deep Tech on Indian Industrial Ecosystem ........................................................15
Deep Tech Domains: Opportunities and Challenges ......................................................... 17
Creating a Roadmap to Success ....................................................................................... 43
Final Thoughts ................................................................................................................... 52
About the Research ........................................................................................................... 53
References ......................................................................................................................... 55
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Executive Summary
Deep Tech – An Exponential Set of Advanced Technologies
‘Deep Tech’ is a portmanteau of Deep technologies, or advanced technologies rooted in ground-

breaking scientific research and backed by patents. Deep Tech covers a vast swathe of
technological areas, including Artificial Intelligence (AI) and Machine Learning (ML), Augmented
Reality/Virtual Reality (AR/VR), Internet of Things (IoT), Big Data, Robotics, Blockchain, Advanced
material science, Photonics and Electronics, 3D Printing, Nanotechnology, Quantum Computing,
Microelectronics, Microbiomics, Bioinformatics, Climate Tech, and Space Tech, among others.
Solves Real-life Problems Market Expansion

(across healthcare, (build product
manufacturing, retail, finance, competencies and
climate, and agriculture among overcome challenges)
other sectors)
Impact of Deep
Tech
Prevents Human
Data Localization Capital Flight
(secure the country’s data (retention of talent
sovereignty) within shores)
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The Indian Deep Tech Ecosystem is Expected to Grow Rapidly
Conducive Policies Investors’ Support Collaborative Culture

• High global exposure
• Strong national initiatives
and use cases in
such as Digital India, • Deep Tech can expand
exponentially with collaboration with
Make-in-India,
proper support and academia
Atmanirbhar Bharat, and
funding • Incubator programs in
Atal Innovation Mission
• The stakeholders are institutes like IIT Madras
• Support to Deep Tech
providing strategic and Indian Institute of
innovation and its incubation and R&D Science, Bengaluru
commercialization support
• Investor-friendly
• Government aids Deep
Tech startups from
regulations and provision
concept validation to
for patient capital and
product development
long-term grants
and launch
Digital Penetration Innovation

• Video/live and gamified • Need for ‘Compressed
learning, virtual class Innovation’ due to the
tools, student impact of Digitalization
performance analytics, and COVID-19 pandemic
among others • Evident use cases with
• The pandemic has given innovative solutions based
further thrust to the Deep on leveraging multiple
Tech ecosystem in India Deep Techs together
• Indian firms are looking to • Technological advances
revamp into digital-first lowering the costs of
businesses starting a company and
scaling the solutions
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Contribution of Key Stakeholders Towards the Growth of India’s

Deep Tech Ecosystem
Startups and Corporates Government, Allied
Organizations and Associations
• Corporates act as a bridge to
gulf the gap between startups, • Create a conducive environment
academia, and government to for steady growth and
promote the Deep Tech development of Deep Tech
ecosystem ecosystem in India
Academia, Research, and

Incubators Investors
• Play a critical role in developing • Growing trust of investors has

and shaping the trajectory of the given a boost to government and
Deep Tech ecosystem industrial funding and support in
this domain
An increase in effective collaborations between different stakeholders to boost the Deep

Tech ecosystem in India is the need of the hour. It is required among key Deep Tech
stakeholders to foster innovation and stimulate the economic and social development of
India. The joining hands of the corporates, government, investors, or entrepreneurs shall
be more beneficial as they all head towards the same destination of enabling the Deep
Tech ecosystem and making India a global Deep Tech hub.
Triple C model involving Startups, Corporates, Investors, Academia, and Government to

foster innovation and stimulate the economic and social development of India:
Create Cultivate
Collaborate
• Access to Incubation • Invest in Deep Tech
and Grants clusters, eg AI, • Access to corporate
• Enable Creation and Quantum funding in form of CVC
Monetization of IP • Enable Academia- • Help in rapid
• Invest in solutions corporate partnerships commercialization
solving for Bharat • Set-up a National Deep • Support joint asset
• Reinvigorate Tech Tech Fund development
transfer desks across • Provide for right fiscal • Validate industry use
universities and legal environment cases and sponsor PoCs
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Introduction
The tech revolution underway has paved way for an exponential set of advanced
technologies loosely defined as Deep Tech and expected to be at the heart of the next
wave of innovation and information disruption. ‘Deep Tech’ is a portmanteau of Deep
technologies or advanced technologies aimed at solving the most complex challenges in
the world around us. Deep Tech covers a vast swathe of technological areas, including
Artificial Intelligence (AI) and Machine Learning (ML), Augmented Reality/Virtual Reality
(AR/VR), Internet of Things (IoT), Big Data, Robotics, Blockchain, Advanced material
science, Photonics and Electronics, 3D Printing, Nanotechnology, Quantum Computing,
Microelectronics, Microbiomics, Bioinformatics, Climate Tech, and Space Tech, among
others.
Deep Tech has the power to create its own markets and disrupt existing industries. If you
are looking for new lines of business and revenue streams, process effectiveness, or other
cost savings, Deep Tech is one of the most important avenues to investigate. Deep Tech
can also potentially help end the 200-year-long trade-off between the well-being of the
planet (sustainability) and our prosperity. Deep Tech is frequently distinguished by its
profound enabling power, the differentiation it may produce, and its ability to drive
change. Deep Tech firms have fundamental and defendable engineering discoveries that
set them apart from firms that focus on incremental refinement, supply of standardized
technologies, or rely solely on business model innovation to generate opportunities. Deep
Tech innovations are defined as disruptive solutions built around unique, protected, or
hard-to-reproduce technological or scientific advances.
Deep Tech solutions have a breakthrough impact on

Conventional tech is a business healthcare, manufacturing, finance, climate, retail,
innovation with a gestation period life sciences, automotive, energy and utilities, among
of a few months to a few years other sectors, as radical as changes like unmanned air
whereas Deep Tech is a scientific vehicles technologies have on defense strategies.
discovery or engineering Leading the next wave of innovation and information
innovation that involves deep disruption, Deep Tech holds the potential for holistic
research and has a longer growth and development that will play a remarkable
gestation period of more than five
role in efforts to address today’s most pressing global
years with multiple in-depth trials.
issues.
Over the last decade, India has seen a massive digital

transformation. The Government of India launched ‘The Atal New India Challenge’ under
the NITI Aayog’s Atal Innovation Mission to promote innovation in startups and Micro,
Small, and Medium Enterprises and support individual innovators. The aim was also to
understand and address the ‘Commercialization valley of death’, where innovators
complete the proof-of-concept stage but are unable to access resources for testing,
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piloting, and getting Deep Tech products to market, due to which only 15% of 100 tech
startups can be commercialized, and only 5% earn a profit.
The COVID-19 pandemic and the attendant reduction in physical interactions have further
boosted India’s digital and Deep Tech landscape. The year 2021 has proven the full venture
funding cycle for India. Despite a funding frenzy for consumer tech ventures, Deep Tech
startups managed to hold their ground, attracting more than double the investment in
2020. Venture capital (VC) funding in Deep Tech companies in 2021 stood at 133
investments worth over USD 1.4 billion, up from 106 deals worth USD 556 million in 2020.1
We are seeing the emergence of B2B Deep Tech unicorns and soonicorns, including
Postman, Innovacer, High Radius, Icertis, Fareye, Agnikul, and Grey Orange. Funds such
as pi Ventures, Axilor, Sequoia Capital, Chiratae, Speciale Invest, Nexus Ventures, Accel,
Bharat Innovation Fund, and Blume Ventures were among the most active Deep Tech
investors in 2021. With 43 new tech startups clocking a valuation of more than USD 1
billion, and 270 Deep Tech startups raising funding in 2021, the Confederation of Indian
Industry, a trade association, expects India to have more than 100 unicorns by 2022.2 This
growth will further be fueled by startups leveraging and scaling Deep Tech such as AI/ML,
IoT, and Cloud to create solutions.
The central roles in the development of new scientific discoveries and their transfer to
commercial applications that have traditionally been played by large entities and
institutions - corporations, governments, universities, and others - are being increasingly
augmented, and in some instances replaced, by startups. In the last 3-4 years, India has
seen many Deep Tech startups that have come up with unique solutions across industries,
which have helped in solving society’s pressing problems and received good commercial
traction. In Asia, China is undoubtedly a giant player. India is, however, also gradually
picking up pace with 3,000 plus Deep Tech startups in 2021 and has the potential to
become the next global hub of Deep Tech.3 Many Indian Deep Tech startups including
CynLr, Qnu Labs, Haystack Analytics, Addverb Technologies, Mowito, Trunome, 30M
Genomics, and Cypherock, are already making waves globally through their innovative
and scalable solutions. In addition, 12% of all startups are using Deep Tech to build
solutions for Indian and Global markets. The Indian Deep Tech ecosystem is expected to
grow exponentially as more startups leveraging Deep technologies in various sectors
make a profound impact on important segments of the economy.
“Understanding and building a Deep Tech strategy and a supporting infrastructure is the
single greatest competitive opportunity of this decade for nations “– Mr. Avnish Sabharwal,
Managing Director, Accenture Ventures and Open Innovation
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The Deep Tech Landscape
Overview
Deep technology, or Deep Tech or hard
tech, is a plethora of advanced
technologies rooted in ground-breaking
scientific research. The term ‘Deep Tech’
was first coined by Swati Chaturvedi, the
CEO of VC Firm Propel (x). It was designed
to differentiate the initiatives which
develop deep technologies from more
general technological initiatives. These
technologies are based on engineering
innovation or scientific advances and
discoveries, backed by patents. A Deep
Tech solution creates a platform technology that can cause disruption across markets,
jumpstart new industries, and address existing bottlenecks in traditional sectors. Deep
Tech has longer gestation periods in comparison to conventional tech. Depending on the
innovation, it can take many years or decades before the technology can be
commercialized.
Major technological areas of Deep Tech include - Artificial intelligence (AI) and Machine learning
(ML), Augmented Reality/Virtual Reality (AR/VR), Internet of Things (IoT), Big data, Robotics,
Blockchain, Advanced material science, Photonics and Electronics, 3D Printing,
Nanotechnology, Quantum computing, Microelectronics, Space tech, Microbiomics,
Bioinformatics, Climate Tech, Space Tech, among others
According to the Indian Economic Survey 2021, India has around 63 million entrepreneurs.
India’s Deep Tech sector can expand exponentially if provided with proper support and
funding. At the national and state level, governments can partner with private sector
organizations to deploy Deep technology for their core operations, thus boosting Deep
Tech startups, providing revenue for their operations, and motivating venture capitalists
to invest in the Deep Tech sector. They can foster an environment to prevent cybercrimes,
increase health tech, fintech, and enterprise tech, among others.
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Notable Trends of Deep Tech in India

• AI/ML, IoT, AR/VR, and Blockchain were
dominating the Indian tech space even
before the COVID-19 pandemic broke out,
but the post-pandemic rapid digitalization,
security concerns, and industrial automation
has further promoted the adoption and
integration of these technologies
• Rising concerns about data privacy and
security are giving an impetus to the
integration of blockchain and quantum
computing across verticals
• The hyper-digitalization post-pandemic has
enabled higher integration and adoption of
AR/VR, AI/ML, and IoT in vivid sectors,
EdTech, Manufacturing, Healthcare, and
Logistics being the major contributors
Source: NASSCOM, Tracxn, and News Articles
Key Stakeholders of Deep Tech Ecosystem

The amount of interest, activity, and funding in Deep technologies is undergoing an
explosion as broad as it is deep. With a growing number of tech startups, unicorns,
investors’ confidence, and a conducive regulatory environment, India is emerging as the
next Deep Tech hub. Leveraging Deep technology to boost growth and remain
competitive in healthcare, education, industrial, and manufacturing, among others, is no
longer a choice but a necessity. Investments in Deep Tech are high-risk ventures that may
take longer roads to liquidity, but eventually, successful winners will lead the market.
Some prominent Deep Tech stakeholders of the Indian startup ecosystem are mentioned
in the table below:
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This ecosystem reflects a new model, one that is far more fluid and dynamic than the ways
in which research and technological development have been conducted in the past.
Growth Drivers
Digital penetration, which increased substantially in the last decade, has
been further accelerated by the COVID-19 pandemic. Video/live and
Digital Revolution gamified learning, virtual class tools, student performance analytics, smart
and Pandemic education campuses, telemedicine/ teleconsultation platforms, digital
Push payment platforms via Unified Payments Interface (UPI) to ensure smooth
and contactless payment are aiding the digital revolution in India. The
pandemic has fundamentally altered how consumers and producers view
Deep technology, giving further thrust to the Deep Tech ecosystem in India.
Innovative & Evident use cases with innovative solutions can further act as key growth
Scalable drivers, enabling companies to increase adaptability and scale faster.
Solutions
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The growing trust of investors has given a boost to government and

Growing Funding industrial funding and support in this domain. Global investors and VCs
and Investor’s make a major chunk of Deep Tech investment. 14% of the total investments
Support in 2020 were made in Deep Tech startups, of which 87% were in AI/ML.4
An increase in research and development is providing impetus to the

growth of Deep Tech startups. High global exposure and use cases
Partnerships & collaboration with academia is helping build Deep Tech skills and
Collaborations innovation capabilities in the country. Incubator programs in institutes like
IIT Madras and Indian Institute of Science, Bengaluru help startups convert
their ideas into solutions. India is also witnessing a reverse brain drain.
People learning abroad are returning and creating Deep Tech solutions.
The Government of India through its strong policies and national initiatives
Policy Framework such as Atmanirbhar Bharat, Digital India, Make-in-India, and Atal Innovation
Mission, has been extending support to Deep Tech innovation and its
commercialization in critical areas, helping expand the Deep Tech
ecosystem.
Access to New Companies today can start, test, and scale their solutions with fewer
Tech at an resources and considerably faster than ever before. Deep Tech innovation
Affordable Cost also benefits from technological advances that have substantially lowered
the costs of starting a company.
"In the last few years, the energy and momentum we saw in global innovation and capability
building from India has been incredible. Deep Tech startups are raising the bar, solving for
India, and building for the world. Investment in R&D, talent pool skilling, access to funding,
investor support, and an enabling policy framework will further add a fillip to the growth of the
Deep Tech ecosystem in India, positioning India as a global tech and innovation hub.”
– Dr. Rohini Srivathsa, National Technology Officer, Microsoft India
Challenges Faced by Indian Deep Tech Stakeholders

Longer • The research and development (R&D) cycle for Deep Tech firms is longer
Gestation than for other tech startups, thus they have a longer gestation and need
Periods more resources to set up. Deep technology requires deep research and
multiple trials
• The theoretical nature of Deep Tech is, by design, trying to prove
previously unprovable. Without a proper technical feasibility study,
development trials may end in failure
• Deep Tech startups may find it challenging to secure investments even

Insufficient from forward-thinking angel investors as it is difficult for them to
Investments understand the potential of an idea that has not been explored
and Lack of
• The Indian market is not ready for longer-term investments before
Patient Capital
profitable returns are visible. Also, the funding for Deep Tech R&D in India
seems to be very low. There is very little, or no patient investment done in
India
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• In India, there is a lack of a skilled talent pool. There are a few tier I and tier
Lack of Domain II institutes that have been upskilling and producing extremely talented
Expertise engineers and IT professionals, but there is a scarcity of domain knowledge
experts
• Globally, many Deep Tech solutions are being developed in graduate
programs in luminary institutions, but in India, only very few institutions
are working towards developing a Deep Tech ecosystem
• India lacks national-level high computing infrastructure to support the

Lack of Sound building of AI/ML models. Other Deep Tech areas such as quantum
Infrastructure computing and nanotechnology also face the same concerns of
infrastructure requirements that demand large funding
• Obtaining datasets that are sufficiently large, credible, clean, and

Lack of Clean comprehensive to build Deep Tech models is often challenging in India and
and Usable is one of the biggest barriers to the development of Deep Tech
Datasets
• Expanding available datasets, especially in areas where their use would
drive wider benefits for the economy and society, would help resolve the
issue
"In order to become a Deep Tech global hub in the near future, the Indian government should
substantially invest in multi-disciplinary learning in diverse scientific fields to amplify the
talent pool." – Dr. Ravi Kothari, Professor, Ashoka University
Deep Tech Ecosystem – Blending Global Learnings into India’s

Deep Tech Model
ISRAEL’s DEEP TECH MODEL
Israel is an entrepreneurial powerhouse and a hotbed

for pioneering technologies, profitable business
opportunities, and high investment returns. The
country is also considered the ‘original startup nation’
of the world as it gives birth to almost two new startups
every day. The Israeli startup ecosystem has produced
several unicorns and successful exits and has built
several Deep Tech products.
• Israel nurtures the startup environment through incubators set up by the government. These
special purpose vehicles give risk-free loans to promising startups. If these startups fail, they
do not need to pay back the loan, but if they succeed, they pay a 3% annual royalty
• Israel Innovation Authority (IIA) is the apex body responsible for Israel’s innovation policy and
operates for the benefit of the Israeli innovation ecosystem and the Israeli economy
• Another big reason for Israel's success as a startup nation is the tight collaboration between
companies, university researchers, and entrepreneurs
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• Local centers of excellence and innovation derived from academic and defense-related
research and development further accelerate Israel's Deep Tech ecosystem. There are
6,000+ active Deep Tech startups in the country
• Thousands of VC firms have flourished around Tel Aviv and nearby Israeli cities, collectively
earning the nickname ‘Silicon Wadi’. Several large consumer internet companies are
venturing into Israel to find solutions for Deep Tech challenges around data, personalization,
marketing, and user retention
• Not all startups make it big, but disappointments are viewed positively in the spirit of failures
being the stepping-stones to success, and this is probably what makes Israel a powerhouse
of innovation
An example worth noticing: Israel’s AI21 Labs

builds Deep Tech to reinvent how we read and
write, through its Wordtune product.
Wordtune is the first AI-based writing
companion that understands context and
meaning. It does this by leveraging advanced
AI tools and language models to understand
the context and semantics of written text.
Blending the Israeli Model into India’s Deep Tech Model – Key Learnings
Israel is a country with more startups per capita than almost any other. India can learn
from the Israeli ability to decide quickly, make bold moves, and dare to take on any
competition while aiming for the top, and Israelis can learn from India the value of long-
term strategic planning, and the ability to build to scale. The Israeli Deep Tech model can
offer innovative solutions to challenges faced by some Indian startups that want to scale
upward rapidly.
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Impact of Deep Tech on the Indian Industrial Ecosystem

Despite representing a small minority of startups, Deep Tech ventures have an outsized
impact because they address large-scale issues and because their work is both futuristic
and practical. When a Deep Tech solution works, it creates a platform technology that can
cause disruption in existing markets and create new industries altogether. Deep
technologies hold the key to social development as well as data security. Through a
continuous, collaborative, and sustained investment-based model, the Indian Deep Tech
sector can spawn incredibly innovative technologies that impact the lives of millions. If
harnessed to its full potential, the Deep Tech-driven framework is the future for Indian
tech startups. Open Innovation and Venturing arms of corporates like Accenture in India
act as a bridge to gulf the gap between startups, academia, and government to promote
the Deep Tech ecosystem.
Benefits of India’s Deep Tech Ecosystem
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Collaborations in the Space of Deep Tech
MeitY Startup Hub – AWS India, September 2021

• To promote Deep Tech innovation and the sustainable
growth of startups in India
MeitY Startup Hub – India Accelerator, August 2021

• To support Deep Tech startups from concept validation
to product development and launch, by assisting them
on aspects such as best practices, fundraising, go-to-
market, and knowledge sharing
Invest India – Microsoft India, August 2021

• Microsoft will work closely with Accelerating Growth of
New India’s Innovations (AGNIi Mission - a program of
the Office of the Principal Scientific Adviser to the
Government of India) to boost Deep Tech startups
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Deep Tech Domains: Opportunities and Challenges
Internet of Things (IoT)

The internet of things (IoT) is a network of
physical objects - "things" - embedded with
sensors, software, and other technologies
to communicate and exchange data with
other devices and systems over the
internet. It is a network of interconnected
gadgets made up of digital machines,
items, tags, and electronic devices, all of
which have their unique identifiers (UIDs),
used to collect and transmit data for real-
time monitoring and other purposes.
Market Size, Scope and Opportunities

The Indian IoT ecosystem is rapidly expanding, owing to the demand for both industrial and
consumer IoT applications. It is expected to grow at a CAGR of 27.93% from USD 15 billion in
2020 to USD 65.76 billion in 2026.5
• A growing number of connected devices, decreasing cost of connectivity, rising focus on
increased digitalization, and flagship government programs coupled with decreasing prices
of sensors are factors driving the growth of the IoT market in India
• Smart lifestyle connected homes and buildings, and embedded homes are some of the
emerging IoT applications. With IoT, the healthcare sector will become more transparent and
economical. Accounting systems, electronic patient recording systems, and other
approaches used by hospitals will be easier and cost-saving
Challenges Faced
Typical challenges in IoT are not just limited to technical or financial issues, such as the cost of
smart sensor devices or the investment in network and computing infrastructure, but also relate
to intrinsic socio-economic factors. Some of the most prominent challenges in IoT include lack
of end-to-end encryption, uniform security standards, contrasting regional standards, seamless
interoperability, and smooth data sharing. Insufficiency of appealing use-cases and viable
business models, ambiguous return of investment further add to the limitations in innovation
and scalability of IoT in India.
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Industry Use Cases
IoT is a key element of digital transformation that brings businesses together by creating
new markets and opportunities for both companies and governments to grow in the
connected world. Among different end-user industries, manufacturing, automotive,
healthcare, utilities, and transportation & logistics are expected to see the highest
adoption of IoT across India.
Sectors Applications Illustrative Examples

Automotive Connected cars leverage the • Vodafone, a global telecom service
data collected from vehicles provider, provided machine-to-machine
through sensors and perform mobile connectivity services between
real-time health monitoring, cars via its secure IoT network to
automated maintenance Mahindra REVA, a Bengaluru-based
scheduling, in-lane position electric vehicle manufacturer. IoT was
control mechanisms, among leveraged for monitoring the vehicle's
others condition and generating alerts in case of
any issue
• Ati Motors, a Bengaluru-based
automotive startup, is leveraging IoT to
build an electric, autonomous, driverless
car which is battery operated
Manufacturing Integration of advanced Grind Master, a machinery and robotic

manufacturing techniques with automation solutions manufacturer
IoT helps in creating implemented Solid Edge software, a 3D solid
manufacturing systems that are modeling solution, leveraging its integration
interconnected and can analyze with other tools, such as additive
real-time data to improve their manufacturing, robotic simulation, and
operational efficiency advanced computer-aided engineering
software. This helped in improving machine
functions, aesthetics, energy efficiency,
reliability, and lowered material costs as well
Logistics IoT has been redefining supply Stellapps Technologies, an IIT Madras-
chain management by incubated Bengaluru-based, IoT startup, has
improving efficiency through successfully applied their SmartMoo™
better asset tracking, inventory platform (full Stack IoT solution) to optimize
management, and fleet the dairy supply chain – spanning from milk
management production, procurement, and cold chain
logistics
Note: The use cases and industries are not exhaustive
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Funding & Investments

• As of 2021, India has more than 1,500 IoT startups growing at 27% CAGR over the last 5 years.
Some of the prominent players are:
• Over 84% of the funding rounds are either seed or angel investments, with a few Series A and
B. Retail, logistics/transport, and the Industrial IoT top the list with the most venture
transactions
• The government of India had allocated USD 550 million in FY2020–21 under the Digital India
initiative. In addition, the government is also promoting venture funds to support the growth
and boost investment in IoT through the International IoT Research Collaboration Scheme
(IIRC)
• In 2021, Stellapps, Zypp Electric, and Fasal were the top three IoT startups that received
maximum funding, ranging from USD 6 million to USD 40 million. Celesta Capital, Nutreco, IAN
fund, Genting Ventures, and Omnivore, among other investors, funded these companies
Artificial Intelligence (AI)

Artificial Intelligence is a broad discipline
of computer science related to creating
intelligent machines that can accomplish
activities that would normally need human
intelligence. Expert systems, natural
language processing, speech recognition,
machine learning, computer vision, robotic
process automation, deep learning, IoT,
image analytics, and visualization are just a
few disciplines that fall under the umbrella
of AI. These software tools can do
complicated tasks with high efficiency.

AI is the most disruptive technology of the century, shifting the landscape of industries, old and
new. The AI market in India is forecasted to reach USD 23 billion by 2026 at a CAGR of 27.5%. 6
Indian AI-SaaS start-ups is expected to create $500 billion of market value by 2030. The
Government of India plans to use AI across ministries to enhance governance and serve people.
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• India is at 6th position on Stanford’s Global AI Vibrancy ranking and aces the ‘Inclusion’
parameter. 45% of all the organizations in India have increased AI adoption due to COVID-19,
and 50% of Indian startups are leveraging AI
• The manufacturing and automotive industry is expecting AI to help them create personalized
virtual experiences for their customers and employees, among other applications. The
banking and finance sector is actively using AI for customer stickiness, and it will see
increased adoption in security and risk analysis
Challenges Faced
India lacks access to specialized infrastructure and storage facilities which form the backbone
of AI. Besides data security and privacy vulnerabilities, problems of bias and false positives
alongside the scarcity of, reliable and open-source public datasets are also deterring building AI
models and their adoption. Although data quality and complexity remain a concern, security,
privacy, stewardship, and integration issues top the list. Being an emerging technology, the
talent pool is limited in India, which further adds to scalability challenges for AI.
Industry Use Cases
The reach and impact of AI are growing with every discovery/improvement in the field. AI
is rolling out profitable use cases in diverse sectors. It also serves businesses via end-to-
end automation of processes. AI may emerge as the most important determinant of
growth across the core sectors of the country. India’s National AI Strategy identifies
agriculture, healthcare, education, smart city infrastructure, and mobility as key areas
where AI can enable development and greater inclusion.
Sectors Applications Illustrative Use Cases

Healthcare A tremendous number of healthcare Bengaluru-based Niramai Analytix, a
apps keep track of patients’ health health tech startup, has developed
conditions. AI-powered watches Thermalytix that uses AI and a high-
capture real-time healthcare data resolution thermal sensing device for the
and give patients suggestions on detection of breast cancer at an earlier
required medication stage than traditional methods
Education AI serves students with different Learning Matters, an EdTech startup, is

capabilities, provides personalized tackling the problem of English language
learning suggestions, increasing education in schools through an AI
the efficiency of each student. AI chatbot called Tara. Running primarily on
can simplify and automate Amazon Alexa, Tara enables voice-based
repetitive administrative tasks education. This autonomous voice
otherwise done manually teacher is armed with AI capabilities such
as NLP, adaptive intelligence, text-to-
speech, and speech-to-text
Agriculture AI-enabled tools are today helping SatSure in partnership with Cisco is
Indian farmers get real-time offering remote crop monitoring
information on their smartphones services, intelligent crop planning, and
about soil quality and water levels, sowing, smart crop health management,
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to help them optimize their precision farming, and yield analytics

irrigation plans using satellite imagery and AI to the
farming community in southern states of
India
"Obtaining data sets that are sufficiently large, credible, and comprehensive to build AI/ML
models is often challenging and is one of the biggest barriers to the development of the AI/ML
industry. Expanding available data sets, especially in areas where their use would drive wider
benefits for the economy and society, would certainly help resolve the issue."
– Mr. Alok Mittal, Co-founder & CEO, Indifi Technologies Pvt. Ltd.
Funding & Investments

• There are 2,727+ AI startups in India, as of 2021 growing at 39% CAGR over the last 5 years.
Karnataka is India’s largest hub for AI startups, followed by Maharashtra and Andhra Pradesh.
• AI patent filings grew at a CAGR of 65.13% between 2011-2019, with a maximum share of AI
patents filed in Chennai. Unlike startups elsewhere, AI startups in India were successful in
raising USD 836 million in funding in 2020 7
• In 2021, Salesken and Fasal were the two AI startups that received maximum funding from
investors including Genting Ventures, Sequoia Capital India, M12 - Microsoft's Venture Fund,
and Omnivore
“Indian B2B companies have been more risk averse due to which the adoption of AI-based used
cases has been slower than expected. But as more companies are willing to take risks associated
with the deployment of these technologies, we have a real chance to scale as a B2B product
powerhouse - building in India for the world. The path to that is dependent on large corporates
willing to take a more flexible approach." – Mr. Anant Sood, Co-founder, Worxogo
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Augmented Reality/Virtual Reality (AR/VR)

Virtual reality (VR) and Augmented reality
(AR) are two pillars of Extended Reality
technologies deployed by businesses
worldwide, on a large scale. AR combines
the digital and physical worlds to create a
virtual experience. It is a multisensory
interactive experience in which real-world
objects are augmented by computer-
generated perceptual information,
sometimes across many sensory
modalities such as visual, aural, haptic,
somatosensory, and olfactory. In contrast,
VR is a computer-generated simulation of a different universe or reality. It is commonly
seen in 3D movies and video games. It aids in creating realistic simulations and the
"immersion" of the spectator through the use of computers and sensory instruments such
as headsets and gloves. Besides gaming, virtual reality is also utilized for training,
education, and science.

The AR/VR market stood at USD 0.55 billion in 2018 and is forecasted to reach USD 6.5 billion in
2022 at a CAGR of 85.2%.8 The rise in the adoption of technologically advanced solutions,
increased application areas, increased partnerships and collaborations, enhanced battery life,
mobile quality of service for voice and data, and universal standards ensuring interoperability
are expected to be the key drivers of this technology. The rise in the adoption of technologically
advanced solutions, increased application areas, increased partnerships and collaborations,
enhanced battery life, mobile quality of service for voice and data, and universal standards
ensuring interoperability are expected to be the key drivers of this technology.
• The roll-out of 4G/LTE and talks on 5G networks has further supported the adoption of this
technology
• Compared to traditional marketing mediums, AR and VR solutions are much easier to foster
engagement. Impressiveness is the biggest advantage of AR and VR solutions, as it creates
the most retainable experience for consumers
Challenges Faced
AR/VR involves the use of sensitive data that could be misused and could worsen cyber assaults
and privacy breaches at large. Hardware dependency and high cost of equipment and software
testing, lack of good infrastructure, and lack of disruptive, well-funded startups add to the many
other challenges faced by this technology. The lack of relevant content and low awareness
among enterprises are additional factors hampering the growth of technology. Most businesses
still need to know the potential return on investment/business cases in both qualitative and
quantitative aspects.
- 22 -
Industry Use Cases
With rising significant advances in both technology innovation and content enhancement
among end users, the demand for AR/VR solutions is growing for multiple use cases. AR
is widely deployed across businesses, while VR is finding more consumer-centric
applications. Simulation and training, product design and visualization, Remote field
support, and logistics are some of the evident use cases of AR/VR.

Education AR translates theoretical materials IIT Bombay, with support from the Ministry
into real concepts, provides training of Education, developed proteomics
opportunities for medical students learning resources such as a virtual
through simulations, and facilitates proteomics lab, and clinical proteomics
practicing surgery on virtual remote triggering virtual laboratories to
patients. VR creates an immersive conduct experiments used in clinical
learning experience proteomics research
Healthcare AR assists in body mapping, Embright Infotech, an India-based startup,

advanced diagnostics, and risk implemented ‘Auticare’, which is an
assessment, augmented surgery, AR/VR-based assistive technology to
and virtual collaboration between diagnose autism spectrum disorder in
doctors. VR assists in psychological children. Auticare tracks the heat map of
treatment, surgery preparation, the eyes and emotional changes occurring
training, and simulation during the exercise
Retail Product visualization in real-time Bengaluru-based online retailer Myntra

through VR adds customized stepped into the brick-and-mortar
features of ‘personal experience’ for structure and embraced VR by creating a
consumers. With sales activities VR zone with Samsung VR headsets. These
increasingly shifting to virtual enhance the customers’ experience while
engagements, AR and VR have the browsing catalogs, performing virtual
potential to boost the efficiency and trials, and buying products. This reflects
effectiveness of virtual sales their product differentiation strategy over
processes major players
"The next wave of interfaces for information dissemination is going to be immersive and those
interfaces will allow us to consume data in the real world. Wherever any sort of engagement is
required, AR/VR is surely going to be a use case. Since user experience is the backbone of any
product, immersive technology offers tons of opportunities across use cases in India."
– Mr. Utsav Mathur, Founder & CEO, Gmetri
Funding and Investments

• There are around 177 VR and 208 AR startups in India, growing at 39% CAGR over the last 5
years. Some of the prominent players are:
- 23 -
• In 2021, AjnaLens, a Maharashtra-based Deep Tech startup, raised a total of USD 2.2 million
funding in over 4 rounds and from 5 investors. Mohsin Hani Al Bahrani and the Ministry of
Defense are a few of the investors
• In 2020, Avataar.me, a 3D and AR platform, raised USD 7 million in its Series A round of funding
from Sequoia Capital India. In the same year, Embright Infotech, a Kerala-based Deep Tech
startup, raised a total of USD 3 million in funding from IIMK Live, a business incubator and
entrepreneurship development center of IIM Kozhikode
Blockchain
Blockchain technology is a decentralized,
distributed ledger that records the
provenance of a digital asset. The data on
a blockchain cannot be changed due to its
inherent design, making it a real disruptor
in industries like payments, cybersecurity,
and healthcare. Further, India ranks second
in terms of crypto adoption worldwide,
behind Vietnam, according to the 2021
Global Crypto Adoption Index by
blockchain data platform, Chainalysis. In
2019, India accounted only for about 2% of
9
global blockchain startups. This reflects that while the technology is being well received,
it is still at a very nascent stage. Exploiting the full potential of this disruptor can put India
in a position to be the biggest technology hub.

Total spend on blockchain is expected to record a CAGR of 47.3%, increasing from USD 0.3
billion in 2019 to reach USD 4 billion by 2025.10 Blockchain offers unique possibilities for
addressing issues related to improving governance. Through features of transparency,
decentralization, and accountability, it can also improve the ease of doing business. Blockchain
offers unique possibilities for addressing issues related to improving governance. Through
- 24 -
features of transparency, decentralization, and accountability, it can also improve the ease of
doing business.
• The government and private organizations are trying to create a conducive environment for
blockchain's steady growth and development in India
• The growth is attributed to the emergence of blockchain in the banking, public, and telecom
sectors. For instance, ICICI Bank, Kotak Mahindra Bank, Yes Bank, and Axis Bank, among
others have piloted blockchain aimed at improving security and transparency in payment
remittances, trade financing, Know Your Customer, asset inventory audit, smart contracts,
and other bank operations
Challenges Faced
Unlike traditional centralized systems, the decentralized architecture of Blockchain raises
performance and scalability challenges. The underlying technology that builds Blockchain is still
emerging and is slowly reaching a level of maturity for production deployments. The state of
regulations and compliance for Blockchain applications is still ambiguous. High energy
consumption by blockchain networks is another cause of concern. Public blockchain
applications are booming, but permission enterprise blockchain projects are few and far
between. Leaders in application and software engineering must grasp how new advancements
enable company requirements to be integrated with public blockchain innovation. It is believed
that the government is exploring ways to generate revenue from cryptocurrencies in the form of
tax.
Industry Use Cases
The government and private organizations are trying to create a conducive environment
for steady growth of blockchain in India. Further, the country is witnessing a few mega
government blockchain initiatives, such as IndiaChain, Blockchain District, and
BankChain.

NFTs, Although Metaverse, NFTs, and • CoinSwitch Kuber and other leading crypto
Metaverse DeFi are projected as different exchanges across the globe are steadily
and DeFi crypto use cases, they are emphasizing these revolutionary use cases
inherently linked, which makes by listing Metaverse, NFT, and DeFi-
each use case relevant to the relevant tokens in the existing space
other. In a Metaverse, crypto • Since Metaverse is the next evolution of
staking, on-chain payments, social connection, Facebook changed its
purchasing NFTs, and procuring name to Meta and is developing exciting
other utilities require DeFi- new technologies that will help people
specific insights. In layman terms, connect and explore in the metaverse
the metaverse is an imaginary
country, NFTs are resources, and
a DeFi network is the country's
economic fabric
- 25 -
Supply Blockchain is used to solve some • In 2019, Walmart worked with Sandhya
Chain of the key challenges in ensuring Aqua (an Andhra Pradesh-based seafood
supply chain transparency by processor) and Stanley Pearlman
providing information and Enterprises, Inc. (a US-based supplier) to
traceability of source products for add the shrimp supply chain to IBM’s
compliance purposes Blockchain platform. This helped to
strengthen the shrimp supply chain
• From inception to injection, the IBM
blockchain network ensures that vaccine
distribution can be traced to support
manufacturers, distributers, dispensers,
and the public during these rough times
Smart Modern-day smart contracts Polygon, a Bengaluru-based blockchain

Contracts operate on the blockchain that startup, is a decentralized blockchain system
creates an immutable record of known for its adaptability and flexibility in
transactions by way of a various decentralized applications. It has its
distributed and decentralized token based on functions known as
network of computers. Each polygonscan. These tokens are used for
transaction recorded on this launching smart contracts irrespective of the
network is entered into an industry
encoded block of information
“India holds a huge potential in the adoption of blockchain technology. With the motive of setting up
independent entities, the government should explore opportunities by collaborating with different
experienced Deep Tech stakeholders to gain pace in implementations."
– Ms. Surbhi Khajanchi, AVP, SettleMint

• There are around 291 Blockchain startups in India growing at 60% CAGR over the last 5 years.
• Lysto, Coin DCX, and Guardian Link were the three Blockchain startups that received maximum
funding in 2021, ranging from USD 12 million to USD 300 million. The top investor types are
angel groups, co-working spaces, entrepreneurship programs, private equity firms, and
syndicates. Seed, Pre-Seed, Venture - Series Unknown, Series A, and Initial Coin Offering are
the top funding types
- 26 -
• Total funding in Indian crypto and blockchain startups increased to USD 600 million, with 34
funding rounds, as of October 2021. Crypto exchange platforms CoinDCX and Coinswitch
Kuber have alone raised almost 60% of the total funding. A few VCs are in the process of setting
up India-focused blockchain and crypto funds that will have a corpus size of USD 20-50 million
Nanotechnology
Nanotechnology builds things, generally
materials and devices, on the scale of
atoms and molecules. It deals with the
understanding and controlling of matter at
dimensions between 1 and 100
nanometers, where unique phenomena
enable novel applications. More
specifically, nanotechnology is the
imaging, modeling, measuring, designing,
characterization, production, and
application of structures, devices, and
systems by controlled manipulation of
their size and shape at the nanometer scale which produces structures, devices, or
systems with at least one novel/superior characteristic or property.

The global market size for nanotechnology was USD 65.1 billion in 2020 and is estimated to grow
at a CAGR of 16.9% during 2021-2026.11 The Indian market share comprises only 1% of the total
global market.12
• Nanotechnology has immense applications and opportunities, from adhesives, lubricants,
and abrasives to food packaging, devices, and surface treatments
• Building on current nanotechnology-enabled applications in areas as diverse as consumer
electronics, medicine, energy, water purification, aerospace, automotive, infrastructure,
sporting goods, textiles, and agriculture, the nanotechnology research underway today will
enable entirely new capabilities and products
Challenges Faced
Lack of expertise, adequate investment, and an institutional mechanism for process scalability
of R&D impede the growth of nanotechnology in India. India lacks high-end infrastructure and
receptiveness and is at a very nascent stage when it comes to the scalability and replicability of
nanotechnology. Effective collaborations among industries, government, and academia can
help create a pathway for increasing the scope of nanotechnology in India.
- 27 -
Industry Use Cases
Nanotechnology-enabled sensors are providing innovative solutions in physical,

chemical, and biological sensing that enable increased detection sensitivity,
microsystems integration capability, and portability for a wide variety of health, safety,
and environmental assessments.

Military Nanotechnology miniaturizes The Defense Research and Development
Forces existing equipment to make smaller Organization (DRDO) is applying
and lighter equipment that uses nanotechnology on a significant scale.
less energy and is more readily Major focus areas have been nuclear,
concealable. It also helps to biological, and chemical attack protection
develop and adapt new materials devices, stealth and camouflage sensors,
for military purposes high-energy applications, nanoelectronics,
and structural applications
Healthcare Nanotechnology has the potential Aten Porus Lifesciences, a Bengaluru-based

to produce innovative diagnostic startup, uses bio-nanotechnology and a
and therapeutic modalities for drug delivery technology platform to
important diseases develop an active therapeutic pipeline. The
technology is used to develop therapies for
rare diseases such as Niemann-Pick Type C
(NPC) disorder, Pompe's disease, and smart
polymer-based artificial viruses that can
deliver a variety of therapeutic genes such
as pDNA, siRNA, miRNA, mRNA, and
antisense oligos to the disease targets
Food Nanotechnology plays a promising Purin, a food-tech startup, uses Advanced

Technology role in food tech, from enabling Nano oxidation processes to keep the
better-quality food storage and nutritional values of food material intact.
increasing shelf life to tracing The company also conducts photolysis to
contaminants and introducing replicate the purifying photosynthesis type
health supplements effect that happens in the AOP, on a nano-
level, making the purification process
applicable to food, where the contaminants
are removed on a molecular level while
maintaining nutrition

• There are around 76 Nanotechnology startups in India. Some of the prominent players are:
- 28 -
• Log 9 Materials, NanoSniff, and Saans International received the largest funding in 2021.
PETRONAS Ventures and JITO Angel Network are two major investors. Initiatives like Digital
India, Make in India, Startup India, Skill India, Nanomission, INUP – I and II, and IMPRINT – I and
II have given a great thrust to Indian nanotechnology
• MeitY has funded more than 45 projects in various areas of nano-electronics, including LEDs,
OLEDs, organic electronics, and flexible electronics, among others. Outcomes have been
extremely promising with 72 patents and more than 1,000 papers. Department of Science and
Technology (DST) sponsored 11 units of nanoscience, seven centers, and one computational
facility to boost applications of nanotechnology
- 29 -
Quantum Computing
Using the power of Quantum Mechanics,
quantum computing can execute a range
of tasks faster and more efficiently than
current digital computers. Quantum
computing offers exponential
development in computer power in fields
like encryption, computational chemistry,
and machine learning. MeitY’s major
initiation of ‘Quantum Computer Simulator
(QSim) Toolkit’ is a notable milestone in the
history of Indian quantum mechanics’ research.

The adoption of quantum tech across industries can potentially add USD 280 – 310 billion to the
Indian economy by 2030. Out of total Quantum workforce, 55% will be engaged in software
development and consulting. The uptake by enterprises is also expected to go up by 45% and in
India, sectors such as manufacturing, high tech, banking, and defence will likely lead the charge
of adopting quantum technologies for critical and large scale use cases. The government’s
allocation of USD 10.7 billion is expected to boost innovation in this field. 13 In August 2021, the
Government of India launched a Quantum Simulator (QSim) which will allow developers,
scientists, and students to research advancements in quantum computing.
• In 2020, the government of India launched the National Mission on Quantum Technologies
and Applications, stressing the importance of pushing forward the quantum mechanics
domain in India
• Near-term and long-term quantum applications will augment AI solutions, improve financial
forecasting, reduce failures in the manufacturing sector, accentuate drug development, and
push for better cybersecurity paradigms. Most quantum-related research is carried out in
universities. While academia can provide well-researched prototypes, industry connect is
essential for developing them into scalable applications
Challenges Faced
The slightest disturbance in a quantum system can lead to de-coherence. To avoid this, a
quantum computer must be isolated from all external interference during the computation
phase. Error correction is critical in quantum computing, where even a single error in a
calculation can cause the validity of the entire computation to collapse.
Industry Use Cases
Quantum computing offers exponential development in computer power in fields like

encryption, computational chemistry, and machine learning. It is being used in a wide
range of activities ranging from speeding up the discovery of drugs and fertilizers to
solving complex optimization problems.
- 30 -

Healthcare It can improvise diagnosis, Archeron Group, a quantum tech
personalize medicine, and optimize startup, has created an integrated
pricing and has the potential to national radiology platform using Deep
accelerate the transition from Convolutional Neural Networks, where
umbrella diagnosis and treatment to the radiological plates of all patients in
precision health status and India are analyzed and a diagnostic
intervention. Quantum computing support system created that provides a
can accelerate drug discovery second opinion
processes
Cryptography It enables quantum-secure QNu Labs, a startup in the security

and encryptions, protects systems and space, is making a lot of strides in the
Cybersecurity data from cyber-attacks with a quantum computing space. It provides
greater level of security than current cloud-based and quantum
protocols. Quantum is also used to cryptography-based cybersecurity
break encryptions. In terms of cyber solutions for secure communication. It
security, quantum computing has uses quantum key distribution
opened possibilities both on the technology to solve the problem of
offensive and defensive side secure key distribution
Governance India has made significant DRDO Young Scientist Laboratory for
improvements in quantum Quantum Technologies has developed
computing in defense, homeland a Quantum Random Number Generator
security, and governance. The which detects random quantum events
government is using a virtual private and converts those into a stream of
network (VPN) with quantum binary digits. It will serve to define
security. Quantum secures internet standards and crypto policies that can
connection and communication. A leverage the Quantum Key Distribution
quantum security network between system in a unified Cipher Policy
government departments ensures Committee framework for more secure
that data confidentiality will not be management of military systems
compromised
"Quantum Computing is a game-changer for the world. It has the power to solve a lot of
problems. India holds a huge potential in quantum. Yet to become a global leader, we must
have a long-term vision, collaborative approach, and government support."
– Mr. Sunil Gupta, Co-founder & CEO, QNu Labs

• There are around a dozen quantum computing startups in India. Some of the prominent players
are:
- 31 -
• QNu Labs, a quantum-based security startup, has a valuation of USD 4 million, Astir IT being its
most recent investor. Qnu Labs is considered the only quantum security-based startup that has
commercially ready products. BosonQ, a quantum simulation startup, raised funding of about
USD 0.04 million from RCS Advisors
• In the 2020 union budget, the government allocated USD 112 million towards the National
Mission on Quantum Technologies and Applications. DST set up the Quantum Enabled Science
& Technology (QuEST) program in 2019, under which it will invest USD 800 million in a span of
three years to facilitate research in this field. ISRO, DRDO, and the Department of Atomic
Energy are expected to jointly pool a sum of USD 30 billion to push QuEST to Phase 2
3D Printing
3D printing is an additive manufacturing process
whereby layers of material are built up to create a
3D object. This is the opposite of subtractive
manufacturing processes, where a final design is
cut from a larger block of material. As a result, 3D
printing creates less material wastage. Sintering,
Melting, and Stereolithography are the three broad
types of 3D Printing. It is cost-effective in terms of
complex geometries and affordable startup costs. It
is completely customizable and ideal for rapid
prototyping. The use of 3D printers in India is coming of age. It is no longer limited to just
building components for the automotive and aviation sector. During the peak pandemic
months, they were used to build valves for ventilators, and face shields.

Higher domestic production, a fall in the cost of manufacturing, increasing use across
applications, and thrust from the Make-in-India Atmanirbhar Bharat campaigns 14 have
accelerated the adoption of 3D printing. India is witnessing increased adoption of 3D printing
technologies with growth rates of more than 30% y-o-y across materials.15
• The Indian 3D printing industry is still at a nascent stage and offers huge growth
opportunities. Considering the expected increase in domestic production post-COVID-19,
the low cost of manufacturing and increasing penetration of 3D printing across various
applications coupled with government support should spur the 3D printer market in India
• 3D Printing is the future of the manufacturing industry and has the potential to replace
conventional manufacturing sooner rather than later. There have been increased
investments in the market amid the transforming 3D Printing environment
- 32 -
Challenges Faced
Higher pricing structures for machines/materials in India make market entry more expensive. A
lack of good infrastructure, slow rate of adoption, absence of formal standards, and strong IP
safeguards are the other barriers to the growth of the 3D Printing ecosystem in India.
Performance limitations of low-cost printers and high cost of advanced machines, a poor
industry ecosystem and inefficient supply chain for raw materials, limited availability of
knowledge, skills, technical support, and experience zones for Indian 3D Printing manufacturers
are other challenges.
Industry Use Cases
Due to the versatility of the process, 3D printing has applications across a range of
industries as varied as aerospace, automotive, medical, fashion, and railways. Experts
believe this technology can help solve India’s housing shortage by delivering completed
homes in a fraction of the time taken and cost of traditional construction.

Military The military talent pool has the think3D, a Hyderabad-based 3D printing
Forces opportunity to harness 3D startup, helped the Indian Navy to produce
printing capabilities in the supply quick replacement parts of centrifugal
of parts. They could translate their pump impellers on-board for its ships. These
knowledge and experience to impellers are lighter, and the cost of 3D-
advance 3D printing platforms printed parts is 40% lower than traditionally
and improve effectiveness and manufactured parts. Chennai-based 3D
efficiency printing startup, Fabheads Automation
designs and develops high-end carbon fiber
helicopter blades for the Indian Air Force
Construction India could well see a tug-of-war Tvasta, a startup incubated at IIT Madras and
between startups and traditional L&T Construction, believes that 3D printing
construction companies as both in construction is the answer to India's
start using 3D printing technology housing issue. L&T validated the use of 3D
to solve India’s housing shortage printing in a two-story building near Chennai
and claimed it is the very first 3D printed
building of its kind in India, with massive
potential to significantly alter the building of
affordable housing in terms of cost, quality,
and speed of construction
Healthcare 3D printing is one of the most 3D-printed pre-surgery anatomical models
disruptive technologies that have combine a patient’s CT scans with software
the potential to change the and 3D printers to produce highly accurate,
clinical field, improving medicine 3D replicas of a patient’s surgical site. In
and healthcare, making care 2020, MAX Hospital collaborated with
affordable, convenient, and Anatomiz3D to set up 3D labs to offer
personalized anatomical models for pre-surgical
planning, patient-specific cutting and
drilling guides, and customized implants
- 33 -

• There are around 168 3D Printing startups in India growing at a CAGR of 24% during the past 5
years. Some of the prominent players are:
• In 2021, 3D Printing startups Robo Bionics, Karkhana.io, and Tvasta Manufacturing received
major funding, with Shelter Venture Fund, Vertex Ventures Southeast Asia & India, Zone
Startups, SINE, and Biotechnology Industry Research Assistance Council (BIRAC) being some
of the key investors
• Objectify Technologies offers a 3D printing marketplace where users can upload and share
their 3D designs to attract customers. So far, the startup has received over USD 0.05 million in
funding
• Indian startup 3Dexter assists educational institutes in building 3D modeling and printing as a
curriculum skill. Since its inception in 2015, the company has secured over USD 0.15 million in
funding
- 34 -
Robotics & Drones

Robotics is an interdisciplinary sector of
science and engineering dedicated to the
design, construction, and use of
mechanical robots. The term “drone”
usually refers to any unpiloted aircraft.
Robotic Drones or unmanned aerial
vehicles (UAVs) operate without a pilot and
with diverse levels of autonomy. A drone’s
autonomy level can range from remotely
piloted, wherein a human controls its
movements, to advanced autonomy, which
means that it relies on a system of sensors
and LIDAR detectors to calculate its movement. Drones and robotic technology can be
used to improve quality and productivity across sectors, which will increase reliability and
cost-effectiveness. Automated data acquisition and management play a larger role in
predictive maintenance and leverage drones and robotics for data collection and analysis.

India’s Industrial Robotics market was evaluated at 4,564 units in 2018 and is estimated to grow
at 13.3% CAGR from 2019 to 2024. India deployed fewer than 5,000 new industrial robots in
2019, 44% in the auto industry.16India’s drone sector is expected to achieve a total turnover of
USD 2.04 billion by 2026.17
• Military use of drones has become the primary use case in India. Used as target decoys, for
combat missions, research and development, and supervision, drones have become a part
and parcel of the military. The Indian defense sector has robotic bomb disposal squads, and
the government is also considering inducting robotic forces into the military’s fold
• The Drones for Daughters project has been initiated by India Flying Labs to inspire young
girls to take up leadership roles in the Autonomous Aviation industry by giving them early
experiences with building and flying drones, encouraging problem-solving skills by
simulating realistic project environments, and bridging the gender divide in emerging
technologies
Challenges Faced
High cost of adoption and procurement of hardware components, lack of domain expertise, and
threat to data privacy are some of the underlying challenges of this technology. Often, drones
can be hard to track on air traffic radars, thereby potentially causing emergencies. The
regulations around UAVs still tend to be a key challenge. The use of drones for inspection in risk-
prone areas like chemical and petrochemical plants is still very limited. In addition, the payload
of drones used in intralogistics, for example between warehouses and production lines, is still
limited to approximately 2 kg. These remain significant technical challenges for drone designers
and manufacturers.
- 35 -
Industry Use Cases
Robotics & Drone technology is used across sectors ranging from telecommunications,
entertainment, manufacturing, and logistics. Drones can not only take pictures, videos,
and transport vaccines but also drop munitions. In the near future, we are likely to have
drones taking up complex repairs or maintenance of high-power transmission towers and
lines with the help of robotic arms.

Agriculture Drones are used for remote Agritech robotics startup TartanSense
management of agricultural builds small agricultural robots, equipped
orchards, anticipating crop fires, with AI-assisted computer vision, to help
water conservation, disaster small farms reduce expenditure and
relief, and tracking of crop improve income. BladeRunner,
heath. Smart drones and TartanSense’s latest robot, can identify,
autonomous mobile robots precisely locate, and mechanically uproot
(AMRs) are becoming human weeds as well as spot spray the crop,
aids. They minimize tough and reducing chemical usage by 45% and
labor-intensive tasks increasing weeding efficiency by 7X
Resources Robots are being used in Detect Technologies deploys Advanced

discrete manufacturing and Drone Surveillance solutions for Oil India
machine automation Limited’s crude oil pipelines to ensure
applications. Using drones for complete visibility of crude oil delivery lines
inventory monitoring in large and flowlines, strengthen operations and
areas like steel plants or ensure security. This is India’s first
construction sites is promising autonomous drone project and first
because they can employ built-in digitized solution offering pipeline
sensors to cover large areas. surveillance and mapping, at this scale
These are further used in
intralogistics
Defense Robotics & Drones identify Hyderabad-based startup, Grene Robotics

security and terrorism-related designed and developed a 100% indigenous
challenges and pinpoint ‘unified, distributed, and wide-area
vulnerable areas that are prone autonomous drone defense dome called
to various risks ‘Indrajaal’ which can protect a large area of
1,000-2,000 sq. km per system against
threats such as incoming weapons and
loitering munitions, among others
- 36 -

• There are around 191 Drones startups in India. Some of the prominent players are:
• There are 167+ Robotics startups in India. Some of the prominent players are:
• In 2021, SkyLark, IdeaForge, and Cron Systems were the major fund receivers in Robotics,
raising maximum funding in Drones, Miko, and Planys Technologies. Peppermint, Ishtiva,
TartanSense, Miko, Accio Robotics, Unbox Robotics are some of the startups that received
further funding in 2021
• In 2022, Reliance Industries (RIL) picked up a majority stake in robotics startup Addverb
Technologies for USD 132 million as the energy-to-telecom conglomerate looks to automate its
businesses
- 37 -
Cloud and Edge Computing

Cloud Computing is an advancing
paradigm in software development that
allows data and programs to be removed
from organizations’ PCs and server rooms
and installs these in a virtual cloud. It
enhances accessibility, provides virtual
storage space, solves backup problems,
and offers security against unauthorized
access and data loss. Edge Computing is a
model that brings computation and data
storage closer to the location where it is
needed to improve network response times
and save bandwidth. It can be described as a more localized version of cloud computing
since it provides intelligent services by collaborating with cloud computing at the edge of
the network.

India’s cloud market was estimated at USD 4.4 billion in 2021 and is projected to reach USD 5.6
billion by 2022, at a y-o-y growth of 26%. The startup ecosystem is another driver of cloud
demand. Cloud startups secured more than USD 3.5 billion in VC investments; SaaS startups
dominated, with an 80-85% share. Hybrid cloud adoption in India is set to grow 49% over the
next 3 years.18
• The Indian Government’s increasing cloud and edge adoption through GI Cloud (MeghRaj),
the National and State Service Delivery Gateways, development of a cloud-based AI platform
called AIRAWAT, TechSaksham, and other initiatives enable ease of authentic access to
government benefits and transparency for citizens
• More Indian firms are looking to revamp into digital-first businesses, with a natural
progression towards increased cloud-led innovation. As a result, 40% of new enterprise
applications in India are likely to be cloud-native by 202219
• The COVID cloud initiatives taken by the government, like CoWin, Aarogya Setu, MyGov
Saathi, Curfew ePass, and COVID-19 Data Repository were some of the key cloud computing
initiatives that ensured that India is well-prepared to face the challenge posed by the COVID-
19 pandemic
Challenges Faced
Configuration, deployment, and maintenance of an edge computing framework is an expensive
proposition. Catering to high-power processors, especially in remote areas, is challenging due
- 38 -
to the lack of secure and sound infrastructure. Data-intensive applications on the cloud require
high network bandwidth, which results in high costs.
Industry Use Cases
With the government’s support and best practices derived from different computing
paradigms and application areas, the adoption of cloud and edge computing is gaining
momentum.

Automotive Cloud & Edge Computing in the Companies are creating cloud
automotive industry is required to indigenous applications and IoT-enabled
cope with the exponential growth solutions for smart mobility, and supply
of data in autonomous vehicles, chain optimization. Smart Ship, a
create efficiencies, and enable shipping industry startup, helps in remote
agile business models across the maintenance of vessels as well as
value chain ensuring crew health
Industrial Cloud & Edge technology enables Xyma analytics uses ultrasonic sensors
Manufacturing manufacturers to gather data and and AI at edge for diagnosis, analysis, and
gain insights for precision course correction in process
monitoring, and predictive manufacturing
maintenance
Financial By using a secure cloud Hewlett Packard Enterprise (HPE), India

Services infrastructure, digital banking collaborated with fintech player EPS India
providers can look to reduce works on ATM management. The
infrastructure complexity and company required high uptime for
improve their security posture. facilitating real-time transactions while
Cloud is acting as the foundation to having the highest security and
integrate other technologies and compliance setup. HPE gave a
help build an inclusive financial comprehensive data center solution to
ecosystem EPS, enabling it to achieve high uptime
and streamline its business

• India currently has around 10,000 SaaS startups. Some of the prominent players are:
- 39 -
• In 2021, 7 Indian SaaS startups – BrowserStack, Razorpay, Chargebee, Gupshup, Byju’s, Urban
Company, and BlackBuck – attained unicorn status. Gupshup, Razorpay, Byju’s, BrowserStack,
and Unacademy were the majorly funded cloud startups in 2021
• Tiger Global Management, Fidelity Investments, Salesforce, Sequoia, GIC, Mirae Asset, ARK
Ncore, IIFL Finance, UBS and ADQ, Bond Capital, Insight Partners, and Temasek are some of the
key investors
• India’s cloud spending increased from USD 340 million in 2020 to USD 440 million in 2021, at
a growth rate of 31.4%20
• In 2020, Indian cloud-based startups raised VC investments of USD 350 million, globally, and
domestically. Top active investors in the segment are Sequoia Capital, Lightspeed Ventures,
Nexus Venture Partners, and Blume Ventures, among others
Space Tech
Space technology is used in travel or
activities beyond Earth’s atmosphere for
purposes such as spaceflight, space
exploration, and gathering geospatial data.
This includes space vehicles such as
spacecraft, satellites, space stations, and
orbital launch vehicles; deep-space
communication, in-space propulsion, and
a wide variety of other technologies,
including support infrastructure
equipment, and procedures. India is
making huge advancements in the space
tech industry. In 2020, with the demand for space-based applications and services
growing, the sector saw a major transformation as the government decided to open the
sector to private players.

The Indian space tech market was valued at USD 7 billion in 2020 (around 2% of the global space
economy). The sector needs to grow at ~48% CAGR over the next five years to reach its target of
USD 50 billion by 2025.21
• India’s growing space tech sector has immense opportunities for startups. The opening up
of the sector may propel India to grow further and expand its share in the global space
market. However, to achieve the goal, the space tech sector needs ecosystem support in
terms of funding from investors and government, along with better collaborations between
academia, government, and industry
• Space missions are now moving towards a demand-driven model. This would also entail
investment opportunities becoming more attractive for private players. People are skeptical
- 40 -
whether the earth will remain a safe place to reside in another 100 years, considering climate
change and pandemic outbreaks. Space tourism and space colonization, hence, offer
immense opportunities in this sector in coming times
Challenges Faced
The absence of national space legislation leads to a lack of clarity on conducting space-related
business activities in the country. There is a lack of awareness about the demands of the global
space industry. The lack of established regulatory framework and guidelines for technology
commercialization and funding in the Indian space sector results in a dearth of private
investment. Further, access to funding has been a challenge for space tech startups because it
is a high-risk business.
Industry Use Cases
The government launched the Indian National Space Promotion and Authorization Center
(IN-SPACe), an extension of ISRO, which is aimed at including private players in space-
related activities. The unlocking of the space tech sector has opened a plethora of
opportunities for the private sector. India’s space tech focuses on making rapid
development in communication, broadcasting, telemedicine, agriculture, urban planning,
emergency response, and education, among others.

Agriculture Because of its synoptic view, • Bengaluru-based space tech startup Pixxel
space tech helps to get fast is currently building a health monitor for
and unbiased information Earth by deploying hyperspectral earth
about the crop situation in the imaging satellites and analytical tools to
country. It provides digital mine insight. It will be the world’s most
data amenable to analysis advanced satellite imaging constellation.
These images can be used for agriculture,
disaster management, identifying gas or oil
leakages, among other applications
• SatSure, a data analytics company,
integrates satellite, weather, and IoT
analytics with the agriculture sector to help
farmer's financial security and crop
insurance
Mapping & Space tech is used in building • Mapping services company MapmyIndia
Navigation homegrown mapping portals has announced a partnership with ISRO to
and holistic geospatial offer a fully indigenous mapping portal and
solutions. Planetary maps geospatial services by combining the
generated from spatial power of MapmyIndia’s digital maps and
information builds our technologies with ISRO’s catalog of
understanding of the satellite imagery and earth observation
geology, topology, and data
- 41 -
geography of distant objects • Hyderabad-based startup Skyroot

in space Aerospace has been developing its first
launch vehicle, “Vikram-I”.
Spacecraft Space tech startups are also • Bengaluru-based startup Bellatrix

Manufacturing involved in building and Aerospace is currently developing a ‘space
launching rockets and taxi’, an orbital transfer vehicle (OTV), to be
satellites to provide space launched in 2024. The company will also
services and aid planetary be launching the rocket ‘Chetak’ by 2023
exploration missions • Chennai-based startup Agnikul aims to
develop and launch its small-lift launch
vehicle ‘Agnibaan’ by 2022

• There are around 368 space tech companies in India currently. Some of the prominent players
are:
• Since the launch of IN-SPACe, the regulatory environment in India has improved significantly.
Moreover, investing in space-tech startups has now become a viable option for Indian investors
• In 2021, Pixxel, Agnikul, and Dhruva Space received the largest funding in space tech. Space
tech startup SatSure also raised its first institutional funding round, led by Baring PE India
• Techstars, Omnivore VC, Mayfield, Indian Angel Network, Blue Ashva Capital, Pi Ventures, and
Next Capital LLC were some of the key investors
- 42 -
Creating a Roadmap to Success
India has undergone a digital transformation during the previous decade. The ecosystem of
technology startups has experienced rapid expansion, spurred on by increased national digital
penetration and the availability of funding. Presently, Deep technologies are becoming the
center of the ongoing wave of innovation disruption. India has large enterprises that have
accelerated their digital journey across industries by analyzing their data assets and evaluating
how they can leverage data resources across their group companies. Indian companies have
increased their budget for digital investment even more than their global counterparts.
• Availability of good academic education and research institutions

Availability of • Multi-disciplinary training and mentoring
Human Capital • Amplifying R&D and upskilling the available talent pool
• Democratization of access to technology
Conducive • Investor-friendly regulations and provision for patient capital and long-
National Policies term grants
• Promote collaboration between researchers and client industries for
commercialization of technology solutions
• Due recognition for contributions to patents and ease of technology
licensing
• Accommodative business and brand building policies
• Access to high-end infrastructure facilities and resources such as
Institutional technology labs, innovation centers, and incubation centers by both
Support corporate and government
"Government should spend a lot more on research and allocate more

grants in the budget for R&D in caliber institutions and enable
corporates to invest more into R&D" – Mr. Naganand Doraswamy,
Managing Partner & Founder, Ideaspring Capital
• Creating solutions for immediate problems and local solutions for

Access to global markets
Markets • Access to global markets
• Existing Marketing and Distribution Channel
• Government funding/grants
Access to Patient • VC funding and funding from Angel investors
Funds
"India spends under 1% in R&D which is significantly low compared to
global counterparts. The government should invest more in R&D
support that needs to be increased by at least 2%. Large corporates
should also support and amplify investment in R&D work."
– Mr. Gopichand Katragadda, Founder & CEO, Myelin Foundry
• Supportive and friendly environment for innovation and creativity

Collaborative • Strategic partnerships and effective collaborations globally
Culture • Exchange Programs –P2P learning platforms
- 43 -
The key to the success of an ecosystem is for each participant to demonstrate the ability
to build collaborative relationships that extend beyond those that already exist in current
industrial value chains. All participants should also be clear on why they are engaging with
the Deep Tech ecosystem and what they hope to achieve. They need to assess the value
realized from all dimensions, not only financial ones. All participants need to contribute
their currency and make the Indian Deep Tech ecosystem stronger before they can realize
their individual gains.
One challenge is to align around a shared vision with short- and long-term goals and a
shared body of knowledge. For example, in the space industry, the historical leaders have
been the integrators of complex products, such as launchers and satellites, while startups
are now developing new commercial applications. But all need an aligned vision for the
launchers to be adapted to a new space market.
"To make India a global Deep Tech hub, we must first create an ecosystem. Three things
must be in place — first, the market players who want to solve local problems while
engaging in peer-to-peer learning. Second, public goods like breakthrough research,
societal platforms, or open multi-party protocol standards (like UPI). These are necessary
to unlock path-breaking private-sector innovation. And third, progressive policy and
regulatory rules." – Mr. Sharad Sharma, Co-founder iSPIRT Foundation
Greater collaboration is, therefore, required among key Deep Tech stakeholders by
leveraging the Triple C model to foster innovation and stimulate the economic and social
development of India.
- 44 -
"A collaborative approach from all stakeholders of the entrepreneurial ecosystem, the joining
hands of the corporates, government, investors, or entrepreneurs, shall be more beneficial as
they all head towards the same destination of enabling the Deep Tech ecosystem and making
India a global Deep Tech hub." – Ms. Sruthi Kannan, Head, Cisco Launchpad
- 45 -
Study on Best Practices in the Contribution of Key Stakeholders

Towards the Growth of India’s Deep Tech Ecosystem
Accenture Ventures – A Case Study on the Role of Corporates
Accenture Ventures works at the intersection of

business and technology to enable innovation-led
growth for its clients. They share a strong belief that
innovation does not always come from within the four
walls of the organization and can rather come from
clients, partners, academic institutions, startups, and
the broader ecosystem. Accenture plays a key role in enabling innovation by bringing
together startups and large enterprises to co-create, co-innovate, and deliver powerful
solutions that enable clients across the world to rotate to the new.
Impact areas:
• Expanding market access by taking startups to G2000 clients
• Support with identification of product/ market fit
• Mentorship through structured programs
• Facilitation of strategic acquisitions, acquirers, and minority investments
• Enhancing Corporate-academia collaboration
Success Stories:
• Worked with 100+ Indian Deep Tech startups to create POCs, Pilots, and large-scale deployments for
its top clients
• Accenture Ventures Challenge identifies and connects the most disruptive Deep Tech startups to
global and Indian clients
• Accenture Unnati initiative provides mentorship from senior Accenture leaders to Deep Tech women
founders
• Has created joint assets with Deep Tech startups across various industries, including Automotive,
Retail, CPG, Pharma
• Accenture has a vibrant academia collaboration going with Top Indian institutes like IIM-A, IITM, and
IISc
Accenture works with B2B Deep Tech startups that have validated products and revenue-
generating clients. They understand clients’ priorities and hotspots and then focus on
curating the right startups/solutions to help in the digital transformation initiatives.
Corporates and startups have quite different DNAs and when they try to work together,
their relationship must be mutually beneficial and based on trust and mutual respect.
Corporates must respect the time, and IP of startups, and the startups must respect the
domain expertise and rigor of corporates. By treating startups as equal partners and as an
extension of Accenture, they were able to drive value both for clients as well as the
startups and play a key role in the growth of the Indian Deep Tech startup ecosystem.
- 46 -
pi Ventures – A Case Study on the Role of Deep Tech Investors
pi Ventures was founded in 2016 with a mission to

identify, fund, and support Deep Tech startups
leveraging disruptive technologies to solve real-world
problems. pi Ventures partners with the startups very
early — at the seed, pre-Series A or Series A stage and
has a deep engagement with the founders. It funds and
subsequently guides Deep Tech startups to convert their technology narrative into a
strong business case. pi encourages companies that are global innovators — aiming
beyond India or any single market and leveraging Deep Tech. It aims to back disruptive
innovation rather than incremental innovation. Additionally, it does not invest in pure
science or research; it rather looks for the intersection of scalable businesses and
disruptive technology.
Owing to a very strong conviction about Deep Tech in India, pi Ventures has now launched
a second fund where it aims to raise around USD 75-100 million. It closed its first fund of
USD 30 million in 2018. With its second fund, it aims to invest in around 20-25 startups,
largely at the seed and pre-Series A stages. pi Ventures envisions seeing India on the Deep
Tech map of the world.
Portfolio of pi Ventures’ Deep Tech Investments
• Locus, a deep-tech startup focused on the logistics sector, provides intelligent

logistics optimizing solutions. Locus has been able to achieve a 25% improvement in
productivity and a 75% increase in order deliveries for its customers
• Wysa, a startup working in the mental health space, is helping users self-manage stress
by blending AI-guided listening with professional expert support. It has a market
presence in over 65 countries.
"Disruptive innovation in Blockchain, Space tech Climate tech, Quantum Computing, and
Robotics, among other sectors will bring about key shifts in global businesses. India has a
claim to become a Deep Tech nation in the next few years and Pi Ventures is working towards
enabling that vision." – Mr. Manish Singhal, Founding Partner, pi Ventures
- 47 -
Detect Technologies – A Case Study of the Role of Deep Tech Startups
Detect Technologies, a prominent IIT-Madras incubated

Deep Tech startup, develops cutting-edge technologies
and unique software solutions for the industrial
ecosystem by offering comprehensive AI solutions –
Asset Integrity Management (Noctua.AI™), Industrial
Project Management (T-Pulse), Remote Monitoring
(Trueview™), and Accelerated AI. Since its inception, the company has been growing
rapidly at a substantial rate and has reached 80% market penetration in India's Oil & Gas
sector. It has lately expanded into six new international areas, and its products are now
being used across 9 other industries – petrochemicals, metals, construction, renewables,
steel, power, and more. Its client base has been continuously increasing and its present
portfolio comprises major industry players such as Shell, ExxonMobil, BPCL, ADNOC,
Aramco, LNG Canada, Adani Group, Tata Steel, Reliance Industries, and some Fortune 500
organizations.
The company holds immense potential with an increase in digitization and technological
advancement. The demand for solutions provided by Detect Technologies is also
increasing in the global market. Total funding raised so far is USD 15.3 million, of which
USD 12 million was announced recently in June 2021. Accel & Elevation Capital are its most
prominent investors. This funding will be used to enhance industrial productivity globally
and to accelerate the digitization of the industrial sector.
The company is revolutionizing safety and efficiency across In October 2021, Detect
the industrial landscape. Technologies collaborated with
Oil India Limited (OIL) to launch
25+ 50+
6 93 the ambitious advanced drone
Trademarks Global surveillance project at OIL’s field
Countries Sites
and Patents Projects headquarters at Duliajan in eastern
Detect Technologies has played a crucial role in boosting the Assam’s Dibrugarh district. This is
industrial ecosystem by accelerating the path to industry 4.0 India’s first autonomous drone
and building state-of-the-art systems by bonding energy, project and first digitized solution
experience, and modern technologies like AI, advanced offering pipeline surveillance and
robotics, IoT-enabled sensors, AR/VR, and computer vision. mapping, at this scale.
“Technologies are rapidly emerging and evolving, and their commercialization and adoption
is providing new opportunities for growth and scaling. Detect Technologies marries cutting
edge robotics and data acquisition, with advanced AI and computer vision analytics -
unlocking new opportunities and reimagining industrial productivity. We, at Detect, are
continuously innovating, transforming processes for improved safety and efficiency.”
– Mr. Daniel Raj David, CEO and Co-founder, Detect Technologies
- 48 -
IIT Madras - A Case Study on the Role of Academia

Contribution of Higher Education Research Institutions and Laboratories in Deep Tech
Academic institutions play a critical role in developing and shaping the trajectory of the
Deep Tech ecosystem. The conscious effort to build strong institutions in science and
technology since independence is yielding results today. The scientific manpower and
infrastructure in technology institutions, independent research centers, and laboratories
give India a strong platform to engage in Deep Tech projects that can potentially have
strong economic and social relevance. Apart from being a fountainhead of innovation,
these institutions train students, and scholars who, in turn, go ahead and establish their
own programs across the country. The landscape of the higher education research
institutions and laboratories can be broadly segmented as follows –
• Fundamental Research – These include institutions that work on fundamental sciences using
theoretical and experimental approaches and seek to advance our understanding of
scientific phenomena, forming the core of Deep Tech projects. Examples of such institutes
include the Tata Institute of Fundamental Research, Institute of Mathematical Sciences,
Indian Institute of Science, Harishchandra Research Institute, the seven Indian Institutes of
Science Education and Research, among others.
• Institutes in Technology and Medicine – These are institutes engaged in top-notch research
in applied sciences and engineering. Breakthroughs from fundamental research get
translated into innovations that can have broad-ranging industrial and commercial
applications. Examples include the 23 Indian Institutes of Technology and 15 All India
Institute of Medical Sciences.
• Industrial Research Laboratories – Council for Science and Research (CSIR) has 38
laboratories all over the country working in different fields like biology, physics, sustainable
materials, energy, and environment, among others. The objective of these institutions is to
provide science and technology solutions to the problems faced by industry and to promote
technology-based entrepreneurship in specific sectors. Collaboration with National Space
Laboratories to launch mach33.aero to promote Deep Tech innovation in aerospace
engineering is one such example.
• Research Organizations in Strategic Sectors (Atomic Energy, Space, and Defense) –

Research institutes including the Bhabha Atomic Research Center and the Indira Gandhi
Center for Atomic Research (Atomic Energy), Indian Space Research Organization, and
Indian Institute of Remote Sensing (Space), Advanced Numerical Research & Analysis Group
and Defense Research Laboratory (Defense) focuses on technologies impacting the strategic
sectors.
• R&D Labs of Private Corporations – The availability of skilled manpower, well trained in
advanced areas of science and technology has prompted many large corporations to set up
their R&D centers in India. Examples include the IBM India Research Laboratory, Jack F. Welch
Technology Center of GE, Google Research India, and Intel Labs, among others. While the
research in these centers is aligned with the overall corporate objectives, many of these labs
- 49 -
collaborate with university research laboratories, thereby strengthening the Deep Tech
ecosystem in the country.
The Deep Tech ecosystem at IITM can be primarily seen

to comprise the following components:
1. People – Innovation in Deep Tech and the creation of startups requires high-quality talent
in different areas of science and technology. The strength to attract talented and
motivated individuals who create new knowledge and constantly push the boundaries
plays an important role in India becoming a Deep Tech hub. This is attributed to top-
quality faculty members, research scholars, project associates, and leadership.
2. Policy – Unless activities are supported by appropriate policies, it is unlikely that

noteworthy results can be achieved. Some of the supportive policies at IITM that
encourage the creation of startups in the institute are Startup Sabbatical, and Placement
Safety Net, among others.
3. Institutional Capacity –People and policy should have access to high-quality

infrastructure to engage in Deep Tech. As a national institute of importance, and more
importantly, as an institution of eminence, IITM has developed the institutional capacity
to enable innovation and commercialization such as hard infrastructure (labs,
equipment, technology, software, etc.), soft infrastructure (audits and processes),
financial support, student engagement, and academic programs.
4. Incubation – Commercialization and founding a startup are business and commercial

activities. While most members of the IITM community are more familiar with science and
technology domains, they need a nudge and a nurturing environment to take the
entrepreneurial leap. The incubation facilities at IITM provide multiple forms of support
to prospective entrepreneurs, including mentoring. A few examples are below:
• IIT Madras Incubation Cell (IITMIC) – Set up in 2013, IITMIC has emerged as India’s
leading Deep Tech startup hub and has become a very successful finishing school for
startups. As of 2020, IITMIC has supported 233 Startups, that have been able to
attract angel investments totaling USD 21.9 billion, achieved an aggregate valuation
of USD 105 billion, created 4,000+ jobs, and filed 125+ patents
• Rural Technology Business Incubator (RTBI) – Set up in 2006, the objective of RTBI is
to support startups that impact rural and underserved segments, leveraging
Information and Communication Technologies. As of 2020, more than 50 startups
have been supported by the RTBI in various areas such as solar/DC/off-grid power
solutions, agri-based innovations, education & skill development, among others
• HTIC MedTech Incubator (MTI) – Set up in 2011, this joint initiative of IITM and the
Department of Biotechnology, the Government of India is focused on building a
community of healthcare entrepreneurs
- 50 -
• Bio-incubator – Set up in 2014, it has facilities specific to biology and life sciences
startups and supports biotechnology-based innovation and entrepreneurship
5. Outreach – A strong Deep Tech ecosystem needs support from multiple stakeholders. An
outreach program that proactively engages with different stakeholders has been a
cornerstone of IITM’s success.
• Government – As a public-funded institute, IITM actively engages with both the
national and state government at different levels. This has enabled us to get the
support of the government on various fronts
• Industry – Industry interaction is an ongoing activity of the institute. Set up in March
2010, the creation of IITM Research Park, India’s first university-driven Research Park
(IITMRP), provided a significant thrust to collaboration, with the industry. More than
70 companies have set up their R&D centers at IITMRP with about 3,000 professionals
working in these units
• Alumni – The illustrious alumni of the institute who are occupying key positions
globally are the strength of IITM. Alumni have been very active in supporting various
activities that have directly enriched the Deep Tech ecosystem. One example is the
Centre for Innovation (CFI) set up with alumni support
“The confluence of People, Policy, Institutional Capacity, Incubation, and Outreach have
resulted in a virtuous cycle, where each component acts in synergy with the other, and has
led to one of the most successful Deep Tech ecosystems in the country.” – Prof. Thillai Rajan,
Professor IIT Madras & Co-Founder YNOS Venture Engine & Principal Investigator at Centre
for Research on Startups and Risk Financing (CREST)
- 51 -
Final Thoughts
The new Deep Tech ecosystem paradigm in India is still in the nascent stages. Players,
roles, and rules will all evolve as new discoveries are made, and technologies demonstrate
their potential. Deep technologies are novel and are significant advances over
technologies currently in use. They require concerted R&D and access to patient capital
to develop practical business or consumer applications and bring them from the lab to
the market. Deep Tech solutions have the advantage of laying the foundation for future
enterprises that emerging economies like India require. There are now widespread real-
world applications of Deep technologies, which is driving their adoption across industries
and society in general. India is progressing in the right direction. There are right Deep
Tech companies, at the right place, creating the right product. Today, there is incremental
risk funding accessible to founders setting up these companies and an appetite to acquire
Deep Tech startups that were not available a few years ago. An increase in effective
collaborations between different stakeholders to boost the Deep Tech ecosystem in India
is the need of the hour. Government support in the form of Deep Tech grants and
favorable tax policies, corporates and startups working together to solve tough business,
and societal problems, and venture capital investments in R&D intensive firms will help
the Indian Deep Tech ecosystem flourish and bring more sustainable solutions to the
market. A new Indian Deep Tech ecosystem is emerging, with significant implications for
all players, particularly businesses, investors, government, academia, and entrepreneurs.
It is now up to us to grab this once-in-a-lifetime opportunity and work towards making
India a leading global Deep Tech hub in the coming years.
- 52 -
About the Research

This report is an outcome of extensive primary and secondary research conducted to
identify the relevant details for all the technologies covered under the Deep Tech domain.
We conducted two focused group discussions, one each with Corporates, Startups, and
VCs facilitated by Accenture Ventures and the other with Academia facilitated by IITM to
gain more clarity on the subject. We express our sincere gratitude to all the panelists. We
also interviewed 16 key players and experts, both from industry and academia, across all
the Deep technologies covered in this report. A qualitative analysis of their responses was
done and incorporated throughout the report to generate richer content. We express our
sincere gratitude to each one of them.
• Mr. Ashwin Raguraman, Founding Partner, Bharat Innovation Fund

• Mr. Milind Hanchinmani, NASSCOM Product Council Member, Lead – Deep Tech Club and
Director, AI Enabling @ Intel
• Mr. Daniel Raj David, CEO & Co-founder, Detect Technologies
• Mr. Sunil Gupta, Co-founder, and CEO, Qnu Labs
• Mr. Avnish Sabharwal, Managing Director, Accenture Ventures and Open Innovation
• Prof. B. Ravi, Institute Chair Professor of Mechanical Engineering, IIT Bombay, and Professor-
in-charge, Desai Sethi School of Entrepreneurship (DSSE) and Founder & PI, Biomedical
Engineering and Technology Innovation Centre (BETIC)
• Prof. B. N. Jagatap, Department of Physics, IIT Bombay (Formerly, Distinguished Scientist and
Director, Chemistry Group, Bhabha Atomic Research Centre)
• Dr. Srivari Chandrasekhar, Director, Indian Institute of Chemical Technology
• Prof. Rishikesha Krishnan, Director, IIM Bangalore
• Prof. Thillai Rajan, Professor IIT Madras & Co-founder YNOS Venture Engine & Principal
Investigator at Centre for Research on Startups and Risk Financing (CREST)
• Dr. Ravi Kothari, Professor & HOD - Computer Science, Ashoka University
• Dr. Pankaj Jalote, Professor - Computer Science and Engineering, IIIT Delhi
• Mr. Alok Mittal, Co-founder & CEO, Indifi Technologies Pvt. Ltd.
• Ms. Madhurima Agarwal, Director, Engineering Programs and Leader, NetApp Excellerator
• Mr. Gopichand Katragadda, Founder and CEO, Myelin Foundry
• Ms. Sruthi Kannan, Head - Cisco LaunchPad, Cisco
• Dr. Rohini Srivathsa, National Technology Officer, Microsoft India
• Mr. Naganand Doraswamy, Managing Partner & Founder, Ideaspring Capital
• Ms. Swapna Gupta, Director, Qualcomm Ventures
• Mr. Derick Jose, Co-founder, Flutura
• Mr. Sharad Sharma, Co-founder, iSPIRT Foundation
• Mr. Manish Singhal, Founding Partner, pi Ventures
• Mr. Utsav Mathur, Founder and CEO, GMetri
- 53 -
• Ms. Surbhi Khajanchi, Assistant Vice President, SettleMint

• Mr. Anant Sood, Co-founder, Worxogo
- 54 -
References
1 Deep Tech Startups attract more than double investments in 2021, Times of India, 2021
2 Indian & global startup sentiment looks up brimming with ideas and hungry for finances, The Tech Panda, 2021
3 NASSCOM Tech Start-up Report 2021 – Year of the Titans, NASSCOM, 2022
4 NASSCOM Launches Deep Tech Club 2.0, NASSCOM, 2021
5 Indian Iot Market Set To Grow Upto USD 15 Billion By 2020, NASSCOM, 2016
6 Report: State Of Artificial Intelligence In India 2021, Analytics Dimag, 2021
7 Indian AI Startups Raised $836.3 Million In 2020: AIMResearch, Analytics Dimag, 2021
8 Virtual is the new reality, Accenture, 2021
9 Blockchain: Powering India’s Technological transformation, Invest India, 2021
10 India’s Blockchain Market, Business Wire, 2019
11 Nanotechnology Market - Forecast (2021 - 2026), Industry Arc, 2020/2021
12 2019's Most-innovative Countries in Nanotechnology, NBIC, 2021
13 India’s Quest Towards Quantum Supremacy, CIM, 2021
14 When Manufacturing Goes 3D, Business Today, 2020
15 3D Printing is Growing Up in the Indian Market, Timesnext, 2020/2021
16 Industrial Robots & Cobots to 2025, Asian Robotics, 2021
17 Investing in India’s Drone Industry, India Briefing, 2021
18 Press Release, NASSCOM, 2021
19 Here's why edge data centers are the future of digital India, Hindustan Times Tech, 2021
20 India start-up deals tracker Q3 CY21, PwC, 2021
21 Preparing to scale new heights: Enhancing private participation in India’s commercial space sector, PwC, 2020
- 55 -

Deep-Tech-Growth Drivers - India

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Unleashing the Power of

Deep Tech in India

Executive Summary ............................................................................................................. 3

Deep Tech – An Exponential Set of Advanced Technologies

‘Deep Tech’ is a portmanteau of Deep technologies, or advanced technologies rooted in ground-

Solves Real-life Problems Market Expansion

The Indian Deep Tech Ecosystem is Expected to Grow Rapidly

Conducive Policies Investors’ Support Collaborative Culture

Digital Penetration Innovation

Contribution of Key Stakeholders Towards the Growth of India’s

Academia, Research, and

• Play a critical role in developing • Growing trust of investors has

An increase in effective collaborations between different stakeholders to boost the Deep

Triple C model involving Startups, Corporates, Investors, Academia, and Government to

Deep Tech solutions have a breakthrough impact on

Over the last decade, India has seen a massive digital

The Deep Tech Landscape

Notable Trends of Deep Tech in India

Source: NASSCOM, Tracxn, and News Articles

Key Stakeholders of Deep Tech Ecosystem

The growing trust of investors has given a boost to government and

An increase in research and development is providing impetus to the

Challenges Faced by Indian Deep Tech Stakeholders

• Deep Tech startups may find it challenging to secure investments even

• India lacks national-level high computing infrastructure to support the

• Obtaining datasets that are sufficiently large, credible, clean, and

Deep Tech Ecosystem – Blending Global Learnings into India’s

Israel is an entrepreneurial powerhouse and a hotbed

An example worth noticing: Israel’s AI21 Labs

Impact of Deep Tech on the Indian Industrial Ecosystem

Benefits of India’s Deep Tech Ecosystem

Collaborations in the Space of Deep Tech

MeitY Startup Hub – AWS India, September 2021

MeitY Startup Hub – India Accelerator, August 2021

Invest India – Microsoft India, August 2021

Deep Tech Domains: Opportunities and Challenges

Internet of Things (IoT)

Market Size, Scope and Opportunities

Industry Use Cases

Sectors Applications Illustrative Examples

Manufacturing Integration of advanced Grind Master, a machinery and robotic

Funding & Investments

Artificial Intelligence (AI)

Market Size, Scope and Opportunities

Industry Use Cases

Sectors Applications Illustrative Use Cases

Education AI serves students with different Learning Matters, an EdTech startup, is

to help them optimize their precision farming, and yield analytics

Funding & Investments

Augmented Reality/Virtual Reality (AR/VR)

Market Size, Scope and Opportunities

Industry Use Cases

Sectors Applications Illustrative Use Cases

Healthcare AR assists in body mapping, Embright Infotech, an India-based startup,

Retail Product visualization in real-time Bengaluru-based online retailer Myntra

Funding and Investments

Market Size, Scope and Opportunities

Industry Use Cases

Sectors Applications Illustrative Use Cases

Smart Modern-day smart contracts Polygon, a Bengaluru-based blockchain

Funding and Investments

Market Size, Scope and Opportunities

Industry Use Cases