Indian startups saw investments plummet to a five-year low of $7 billion in 2023, causing the nation's global ranking to drop from third to fourth place, according to Ccsupsc. The severe funding downturn impacted thousands of ventures and shifted market dynamics significantly.
India is actively developing a robust policy framework to support deep tech, but the overall startup funding environment is experiencing a significant downturn. A tension is created between proactive governmental support and challenging market realities for the deep tech startup regulatory landscape in 2023.
While the Draft National Deep Tech Startup Policy (NDTSP) offers crucial structural support, its immediate impact on deep tech growth may be tempered by broader economic headwinds and the critical need for precise deep tech definition and agile implementation.
India's Strategic Push for Deep Tech
A policy initiative for a dedicated deep tech startup framework was recommended by the Prime Minister's Science, Technology & Innovation Advisory Council (PM-STIAC) in July 2022. The recommendation, detailed by Psa Gov In, underscored the strategic importance of nurturing deep tech innovation within the country.
The Office of the Principal Scientific Adviser served as the central coordinating and drafting body for the NDTSP, reflecting a high-level commitment to its development. The centralized effort aimed to create a coherent and supportive framework for advanced technological ventures.
The Draft National Deep Tech Startup Policy (NDTSP) was subsequently published for public comments and recommendations, as reported by Lexology. The public engagement phase demonstrates an intent for a comprehensive and inclusive policy, integrating diverse perspectives into its final form. The NDTSP is a high-level strategic initiative, born from top advisory recommendations, signaling a national commitment to fostering deep tech innovation.
Key Incentives: Easing the Path for Innovators
Startups are to be provided an 80% rebate in filing of patents compared to other companies, according to Startup India. The significant financial incentive reduces the cost burden for deep tech ventures seeking to protect their intellectual property.
