Technology – India Strengthens Deep Tech Ecosystem Amid Investment Challenges
Technology – India’s efforts to establish a globally competitive deep technology ecosystem will largely depend on long-term investment, stronger domestic demand, and closer collaboration between industry, government, and research institutions, according to leading Indian-origin executives in the sector.
The issue was discussed at the Hopkins India Conference 2026, where business leaders and investors examined the key challenges slowing India’s progress in advanced technology innovation.
Talent Pool Seen as India’s Core Advantage
Vivek Lall, Chief Executive of General Atomics Global Corporation, highlighted that India’s greatest strength lies in its vast and skilled workforce. He described the country’s talent base as a critical strategic advantage that sets it apart from many other nations.
He also pointed out that startups are increasingly playing a significant role in driving innovation, particularly in sectors such as defence and aerospace. According to him, these young companies bring fresh ideas and energy, especially at a time when global geopolitical tensions are reshaping priorities in defence technology.
Weak Domestic Adoption Remains a Concern
Girish Rishi, CEO and Chairman of Cognite, noted that while India has strong structural advantages, the pace of technology adoption within the domestic market remains slow. He observed that many businesses still view technology primarily as an expense rather than a tool for growth and competitiveness.
Rishi emphasized that for startups to scale effectively, they need robust support from local customers. He added that large Indian corporations should act as anchor clients, similar to how enterprises in countries like the United States and China support emerging companies.
Deep Tech Faces Higher Barriers
Raj Iyer, President of Global Public Sector Markets at T-Second, explained that deep tech sectors face more complex challenges compared to software industries. He said that scaling deep tech ventures requires significant investment in research, infrastructure, and skilled talent, along with longer development timelines.
He stressed that governments can play a crucial role not only by funding innovation but also by adopting new technologies early. Policy initiatives such as domestic manufacturing programs have already encouraged local production and procurement, creating opportunities for startups.
Iyer also highlighted India’s vast data resources, noting that the country has access to large datasets that can be effectively leveraged with artificial intelligence to drive future innovation.
Rethinking Funding Models for Innovation
Seema Chaturvedi, Founder and Managing Partner of Achieving Women Equity Funds, pointed out that traditional venture capital approaches may not be suitable for deep tech investments. She explained that this sector requires patient capital and long-term commitment rather than quick returns.
Chaturvedi called for a more diverse funding ecosystem that includes government support, institutional backing, and philanthropic contributions. She acknowledged that India has started taking steps in this direction through initiatives such as government-backed funding programs and research-based financing models.
She also warned that investors must consider not just technological risks but also challenges related to execution and scaling, which can significantly impact outcomes.
Collaboration Key to Scaling Innovation
Panelists agreed that India’s ability to develop cost-effective solutions gives it a competitive edge globally. However, they noted that scaling these innovations requires stronger partnerships between startups and established industrial players.
Rishi emphasized that large companies must actively support emerging startups by adopting their technologies and investing in their growth. Such collaboration, he said, is essential for building a sustainable innovation ecosystem.
Path Ahead for India’s Deep Tech Growth
Over the past decade, India’s startup ecosystem has grown rapidly, supported by digital infrastructure, policy reforms, and increased investment. Experts believe that the next phase will focus on transforming innovation into globally competitive businesses.
Strategic sectors such as artificial intelligence, semiconductors, and defence technologies are expected to play a crucial role as India aims to strengthen its position in global value chains. Achieving this will require coordinated efforts across stakeholders, sustained investment, and a shift in how technology is adopted within the domestic market.