Drones, Chips, AI: India Proposes $25-Billion Pool For Deep Tech Startups
The Indian government has proposed a $25 billion funding pool to bolster the domestic deep tech sector, including AI, semiconductors, and drones. This initiative aims to reduce reliance on foreign technology and improve India's competitive standing in global markets.
Why it matters
This represents a significant strategic shift in India's industrial policy to foster self-reliance in critical emerging technologies.
India has proposed a $25 billion pool to support Deep Tech startups as it seeks to reduce dependence on foreign technology and compete globally.Rajat Tandon, president of the Indian Venture and Alternate Capital Association (IVCA), said the proposed pool would combine government support, private equity and venture capital, along with additional funding.Deep Tech refers to technologies built on scientific research or major engineering advances. These include artificial intelligence (AI), semiconductors, advanced manufacturing, drones and space technology.Deep Tech Deals And Funding RiseThe IVCA-Venture Intelligence Bharat DeepTech Report 2026 recorded $11.4 billion in cumulative private equity and venture capital (PE-VC) funding across 957 Deep Tech deals between 2015 and July 16, 2026.Here, "funding" refers to the total amount of money investors put into Deep Tech companies through PE-VC investments during a given period, while a deal is an individual investment transaction involving a company.
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