TAG: GS 3: SCIENCE AND TECHNOLOGY
THE CONTEXT: Recently, the Principal Scientific Advisor announced plans to present the ‘deep tech’ policy to the Union Cabinet for approval in the upcoming weeks during a public event.
EXPLANATION:
- This policy, initially unveiled as a draft in July 2023 for public feedback, has undergone refinements based on industry input, now awaiting final approval.
‘Deep Tech’:
- The term ‘deep tech’ remains somewhat nebulous within tech and startup domains, lacking a precise definition.
- However, these startups are typically characterized by the development of intellectual property grounded in new scientific breakthroughs.
- Contrary to easily replicable ideas, deep tech ventures promise substantial impacts yet to be realized.
State of ‘Deep Tech’ Startups in India
- India’s draft policy references Startup India’s database, indicating 10,298 recognized startups under the Department for Promotion of Industry and Internal Trade, distributed across various sub-sectors within the ‘deep tech’ space as of May 2023.
- However, a Prof. expressed concern about the low representation of ‘deep tech’ startups in India, constituting only about 10% of the total startup landscape.
- This calls for increased support and nurturing efforts.
Initiatives by DSIR, CSIR, and NRDC
- The Department of Scientific and Industrial Research (DSIR), affiliated with the Council of Scientific and Industrial Research (CSIR), aims to bridge the gap between scientific and technological advancements in CSIR labs and industry.
- DSIR will focus on technology transfer to medium and small-scale industries, while CSIR will target a broader spectrum of industries.
- Additionally, the National Research and Development Corporation (NRDC), also a CSIR entity, will concentrate on supporting startups in alignment with India’s science and technology ecosystem.
Challenges and Funding Needs
- Funding remains a significant obstacle for ‘deep tech’ startups.
- Compared to fintech or retail software startups, these ventures require substantially larger amounts of capital.
- The funding disparity and the considerable financial requirements for ‘deep tech’ initiatives have been highlighted, emphasizing the need for enhanced funding mechanisms and support.
Conclusion
- The ‘deep tech’ policy’s imminent submission to the Union Cabinet indicates the government’s commitment to fostering innovation and scientific breakthroughs in India’s startup ecosystem.
- However, the current underrepresentation of ‘deep tech’ startups and funding challenges highlight the necessity for comprehensive support mechanisms to nurture and promote these ventures for impactful technological advancements and economic growth.