NEW DELHI: Commerce and industry minister Piyush Goyal on Wednesday said the government will dedicate the next edition of the Startup Fund of Funds almost entirely to deep-tech ventures, underscoring India’s ambition to shift from being the world’s back office to a global innovation engine.
“Our startup fund of funds’ second edition, we are hoping to dedicate almost entirely to Deep Tech investments, particularly early-stage investments before the product matures,” Goyal said at an event in the national capital. “The risk capital will ensure that our friends from the tech ecosystem don’t end up selling a large part of their equity at a very early stage to venture capitalists or foreign funds.”
Goyal said the government’s proposed ₹1 trillion Anusandhan Fund would provide long-tenure, low-cost loans to promote innovation.
“When we talk about giving ₹1 lakh crore ( ₹1 trillion), it’s equivalent to about $100 billion worth of research being done in Europe or America. Our cost being much lower, our talent being more affordable,” he said.
The minister said the initiative was part of India’s broader goal of achieving technological self-reliance.
“India must reduce its dependence on foreign technologies, foreign weapons, foreign energy sources, or foreign critical technologies,” he said, adding that the covid pandemic had shown the importance of “resilient supply chains” and “control over essential supplies in critical areas.”
Deep tech spans artificial intelligence (AI), cybersecurity, clean energy, manufacturing, advanced computing, mobility, agritech and infrastructure. Countries with a highly skilled workforce, and robust research and development capabilities lead in deep tech innovation. Funding surged from $36 million in 2016 to $677 million in 2023. The Indian deep tech sector ranks ninth among well-funded countries globally that include Israel, Japan, Sweden, Germany and the US.
Referring to India’s digital transformation, Goyal said the number of internet users had risen from about 250 million in 2014 to nearly 1 billion today, crediting the Digital India initiative for expanding financial inclusion and driving governance reforms.
He also underlined India’s growing strength as a global innovation hub.
“The world is convinced that the capital of talent and skill is in India today. They see the 15 lakh engineers coming out of college every year, the 24 lakh overall STEM graduates, the highest number of any country in the world,” Goyal said.
Calling for collective ambition, he urged innovators, investors and alumni networks to work together.
“The world has high expectations from each of you,” he said. “A ship is safe in the harbour. But that’s not what it’s meant for. India is ready to sail and take on global challenges.”
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