India's Deeptech Boom: Over 480 Startups Launched in 2023, AI Leading the Way

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India's Deeptech Boom: Over 480 Startups Launched in 2023, AI Leading the Way

Team Finance Saathi

21/Jun/2024

Key Points:

India is home to over 3,600 deeptech startups, ranking sixth globally.
In 2023, more than 480 new deeptech startups were established in India.
74% of these startups focus on AI, marking a significant increase from previous years.

India has cemented its place as a major player in the global deeptech ecosystem, now home to over 3,600 startups in this cutting-edge sector. According to a recent Nasscom-Zinnov study, India ranks sixth in the world for deeptech innovation. This growth is particularly notable with the launch of more than 480 new deeptech startups in 2023 alone, doubling the number from 2022. This surge underscores India's burgeoning role in deep technology, characterized by its significant focus on artificial intelligence (AI).

Rapid Growth in Deeptech Startups

The deeptech landscape in India is witnessing an unprecedented expansion. In 2023, the sector saw the establishment of over 480 new startups, a remarkable increase compared to the previous year. This influx highlights the dynamic nature of the Indian deeptech ecosystem and its capacity to foster innovation at a rapid pace. More than 100 of these startups have already made significant strides by developing intellectual property and pioneering innovative solutions in emerging domains.

AI Takes Center Stage

AI is a cornerstone of India's deeptech growth. The focus on AI has surged to 74% among deeptech startups, a significant jump from 62% during the period from 2014 to 2022. This trend reflects the global shift towards AI-driven solutions and India's strategic positioning as a hub for AI talent. With the largest pool of developers in the world, India is leveraging its strengths to push the boundaries of AI research and application.

India's Position in the Global Ecosystem

Despite being a hub for global AI talent, India still ranks sixth in the deeptech ecosystem. To ascend to the top three, strategic support is essential. Kritika Murugesan, Head of Nasscom Deeptech, has outlined several key areas that need attention to bolster India's standing:

Access to Patient Capital: Deeptech startups require long-term investments to build and scale their products effectively. Ensuring access to patient capital can provide these startups with the financial stability needed for sustained innovation.
Strong R&D Partnerships with Academia: Collaboration between startups and academic institutions can drive next-generation innovations. These partnerships are crucial for providing startups with the research support and resources necessary to advance their technological developments.
Streamlining Government Procurement: Simplifying government procurement processes can enable startups to develop and implement India-specific solutions, fostering a more conducive environment for innovation.
Implementation of the Deeptech Policy: The deeptech policy tabled in 2023 aims to create a supportive framework for the deeptech sector. Its implementation is vital for addressing systemic issues and providing a structured path for the growth of deeptech startups.

The Path Forward

India's deeptech ecosystem is poised for significant growth. By focusing on the areas highlighted by industry experts, the country can enhance its position on the global stage. The combination of a robust talent pool, an increasing number of startups, and strategic support mechanisms can propel India into the top tier of the global deeptech ecosystem.

In conclusion, India's deeptech sector is on a transformative journey. The remarkable growth in the number of startups, especially those focusing on AI, showcases the country's potential to become a global leader in deep technology. With continued support and strategic initiatives, India can not only improve its ranking but also drive substantial innovations that can benefit the global tech landscape.

By nurturing its deeptech ecosystem, India stands to make significant contributions to the world of technology, pushing the boundaries of what is possible and setting new standards for innovation and development. The future of India's deeptech sector looks promising, and with the right support, it can achieve new heights in the global arena.

Also Read : Telecom Revenue Soars to $28.7 Billion in FY24 Amidst Jio and Airtel Dominance

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India's Deeptech Boom: Over 480 Startups Launched in 2023, AI Leading the Way

Rapid Growth in Deeptech Startups

AI Takes Center Stage

India's Position in the Global Ecosystem

The Path Forward

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