Context: 

The draft National Deep Tech Startup Policy (NDTSP) was released by the office of the Principal Scientific Adviser to the Government for public feedback. The policy aims to “ensure India’s position in the global deep tech value chain,” in domains such as semiconductors, Artificial Intelligence (AI) and space tech.

Key highlights of the NDTSP include:

• Bolstering Research and Development: The policy seeks to support research and development activities in deep tech start-ups to foster innovation and technological advancements.
• Financing Support: The policy aims to provide financing assistance to deep tech start-ups at critical stages, such as before they launch their products or ideas into the market.
• Simplifying Intellectual Property Regime: The policy proposes to streamline the intellectual property regime for deep tech start-ups, making it easier for them to protect their innovations and inventions.
• Easing Regulatory Requirements: The NDTSP suggests measures to ease regulatory burdens for deep tech start-ups, enabling them to navigate administrative processes more efficiently.
• Promotion Measures: The policy suggests the creation of an Export Promotion Board to facilitate the entry of Indian deep tech start-ups into foreign markets and encourages the inclusion of provisions for market access in foreign trade agreements.
• Attracting Global Talent: The policy includes resource-intensive approaches to attract international talent, providing networking opportunities and incentives for experts interested in contributing to India’s deep tech ecosystem.
• Inter-Ministerial Deep Tech Committee: To address the different aspects of deep tech and its supply chains that fall under various ministries, the policy recommends the creation of an “Inter-Ministerial Deep Tech Committee” to review and coordinate the requirements for a thriving deep tech ecosystem.
• International Engagement: The policy emphasizes the need for a coordinated and comprehensive approach to engaging with international partners and multilateral institutions to safeguard India’s interests in deep tech development and manufacturing.

What is Deep Tech?

• Deep tech or deep technology refers to a class of startup businesses that develop new offerings based on tangible engineering innovation or scientific discoveries and
• Usually, such startups operate on, but are not limited to, agriculture, life sciences, chemistry, aerospace and green energy.
• Deep tech fields like Artificial Intelligence, advanced materials, blockchain, biotechnology, robotics, drones, photonics, and quantum computing are moving more and more quickly from early research to market applications.

State of India’s Deep Tech Start-ups:

• India had over 3,000 deep-tech start-ups, dabbling in new-age technologies like Artificial Intelligence, Machine Learning (ML), Internet of Things, Big Data, quantum computing, robotics, etc., at the end of 2021.
• According to the National Association of Software and Service Companies, deep-tech start-ups in India raised USD 2.7 billion in venture funding in 2021, and now account for over 12% of the country’s overall start-up ecosystem.
• In the last decade India’s deep tech ecosystem has grown 53% and is at par with that in developed markets like the US, China, Israel, and Europe.
• Bengaluru accounts for 25-30% of India’s deep-tech start-ups, followed by Delhi-NCR (15-20%) and Mumbai (10-12%).
• Deep-tech start-ups are making their presence felt across sectors like drone delivery and cold chain management to climate action and clean energy.

Present challenges:

• Scale and Time Challenge: To build actual business applications and transfer them from the lab to the market, it takes concerted R&D.
• Marketing: Failure to collect adequate market intelligence, improper use of that information, and insufficient data on overseas markets are all marketing issues.
• Lack of Capital: Because Deep Tech firms require more capital than ordinary tech start-ups, one of the most significant barriers to commercialization is funding.
  • Furthermore, because deep technology involves previously unknown mechanics and algorithms, investors are hesitant to support such early-stage systems because they lack the knowledge to assess the new technologies’ potential worth.
• Cultural and Industrial Challenges: Biotech firms in Asia, for example, face numerous obstacles from the government because of stringent laws, as this technology raises issues about biosafety, food safety, and ethics.

Conclusion

• Overall, the NDTSP aims to foster a vibrant ecosystem for deep tech start-ups in India, promoting innovation, technological advancements, and international collaboration to ensure India’s competitiveness in the global deep tech landscape.

FAQs about the National Deep Tech Startup Policy (NDTSP):

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