TAG: GS 3: SCIENCE AND TECHNOLOGY
THE CONTEXT: Deep tech, encompassing advanced technologies with disruptive potential, has emerged as a key focus area for India’s startup ecosystem.
EXPLANATION:
- At the Startup Mahakumbh event, Department for Promotion of Industry and Internal Trade (DPIIT) highlighted the imminent release of a policy tailored for startups in the deep tech space.
- This policy, currently in the final stages of inter-ministerial consultations, aims to provide a conducive environment for the growth and innovation of deep tech startups.
Scope of Startup Mahakumbh and Industry Participation
- The Startup Mahakumbh event serves as a platform for thousands of startups and investors across various sectors, including artificial intelligence, agritech, fintech, and gaming, to converge and collaborate.
- it is organized jointly by industry bodies such as Assocham, Nasscom, and TiE, with support from government agencies like DPIIT and Invest India.
- The event underscores the collaborative efforts to foster entrepreneurship and innovation in India’s startup ecosystem.
Government Support and Financial Initiatives
- The Indian government has demonstrated its commitment to bolstering deep tech capabilities through financial incentives and schemes.
- In her Interim Budget speech, Finance Minister Nirmala Sitharaman announced a Rs 1 lakh crore fund to provide long-term, low-cost or zero-interest loans for research and development.
- Additionally, a new scheme to enhance deep-tech capabilities in the defense sector was promised, highlighting the strategic importance of technological innovation in national security.
Nurturing a Culture of Innovation
- Industry leaders and former Niti Aayog CEO Amitabh Kant emphasized the need for India to embrace the opportunities presented by artificial intelligence and other emerging technologies.
- President of IT industry lobby group Nasscom advocated for an “opportunity narrative” surrounding AI, emphasizing the importance of balanced oversight to maximize its potential benefits.
- India’s startups are seen as a national asset, underscoring their significant contribution to the economy and innovation landscape.
Challenges and Opportunities for Startups
- Despite India’s burgeoning startup ecosystem, challenges persist, particularly in funding and sustainability.
- The decline in funding and the decrease in the number of unicorns in 2023 signal a need for startups to prioritize profitability and operational efficiency.
- However, investors remain optimistic about India’s startup journey, with significant uninvested capital earmarked for the sector.
- Encouraging greater participation from established corporates and conglomerates in funding startups could further catalyze growth and innovation.
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 advances.
- 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.
- Deep tech often requires a lot of early-stage funding for research and development, prototyping, validating hypothesis, and technology development.
National Deep Tech Startup Policy (NDTSP):
- The Draft National Deep Tech Startup Policy (NDTSP) is strategically formulated to stimulate innovation, spur economic growth, and promote societal development through the effective utilization of deep tech research-driven innovations.
- This initiative centralizes on bolstering deep tech startups, thereby solidifying India’s financial stability and stimulating the transition towards a knowledge-centric economy, consequently augmenting India’s overall productivity.
- NDTSP aims to harness the transformative potential of technological advancement across diverse sectors, serving as a catalyst to stimulate ripple effects throughout the economy and laying the groundwork for new industry creation.
- This policy aims to significantly strengthen India’s capabilities and enhance global competitiveness.