Deeptech startups in India must have global ambitions, urge panellists at TechSparks

Deeptech refers to startups built around advanced engineering or scientific technology, rather than mainly software or simple digital services. These companies often solve hard problems that need specialised knowledge, equipment, testing, and time. That makes deeptech important for industrial capability and national sovereignty.

The panel represented three clear examples. CynLr works in robotics, Ethereal Machines develops high-precision manufacturing, and Agnit Semiconductors builds gallium nitride semiconductor products. These fields require machines, manufacturing processes, hardware design, and skilled engineers. They are also linked to the country’s ability to build critical technologies.

India’s deeptech ecosystem has moved out of the shadows, but it still lacks enough talent and supporting infrastructure in some areas. The panellists said India must build basic manufacturing capabilities and develop sovereign capability in semiconductors. They also urged startups to combine self-belief with global ambition as the sector grows.

Indian deeptech startups are being urged to target global markets because advanced technologies need broad demand and cannot depend only on domestic customers. A larger market can support expensive development, manufacturing, and commercial growth. It can also help Indian companies compete internationally instead of remaining limited to one country.

The government can provide an important starting point. Shweta Rajpal Kohli said government demand and the government acting as a first buyer can boost a sector. However, she also noted that procurement is complicated. Hareesh Chandrasekar said startups may want the government as their first customer, but not their only customer.

Gokul N A put the point directly: deep technology needs a global market, not India alone as its focus. The opportunity is strengthened by India’s talent and scale, according to Kohli. The next step is accelerating that potential while building products that can win customers worldwide.

Indian deeptech startups now have better access to early funding than they did in the past, but capital remains unevenly available. Seed-stage funding has improved, and Kaushik Mudda said raising up to $5 million is generally not much of a challenge. This gives some companies room to develop and reach early milestones.

The major gap appears at the next financing stage. Mudda identified a scarcity of funding between $10 million and $15 million. Gokul N A added that startups need more patient capital, meaning funding that can support a longer development journey rather than demanding quick results. Deeptech often needs time to build physical products and capabilities.

The policy environment is improving. Shweta Rajpal Kohli pointed to the government’s Rs 1 lakh crore Research, Development and Innovation Fund. Even so, the panel’s figures show that moving from early support to larger growth funding remains a serious challenge for Indian deeptech companies.

Deeptech companies face a linked risk when money and talent arrive only in small amounts or for short periods. Their development can slow, and they may struggle to turn promising technology into reliable products. That would weaken their ability to compete globally, which the panellists identified as an essential ambition for Indian startups.

The article gives two warning signs. Gokul N A said the ecosystem is still absent in parts of robotics and that India lacks enough talent, especially at the mid-management level. He also said the country does not produce enough quality engineers because it remains service oriented. Mudda identified a funding shortage between $10 million and $15 million.

Together, these gaps can make scaling difficult. Startups may have early funding but lack the managers, engineers, and patient capital needed for the next stage. The panel’s wider message is that India must build stronger manufacturing ecosystems and accelerate support if companies are to grow into global businesses.

The Indian government can support deeptech in three connected ways. It can provide capital for research, development, and innovation. It can create policies that make it easier for startups to build and operate. It can also generate early demand by becoming a first customer for products relevant to national needs.

Shweta Rajpal Kohli said government capital and policies are helping create an enabling environment. She also highlighted the Rs 1 lakh crore Research, Development and Innovation Fund. Government demand can give a sector a major boost, but Kohli noted that procurement processes are complicated. That can make selling to the state difficult for young companies.

The panel therefore described government as an enabler, not a complete market. Hareesh Chandrasekar said startups may want the government as their first customer, but not their only one. Global customers remain necessary for deeptech companies to grow and compete at scale.

Domestic semiconductor and manufacturing capabilities matter because deeptech increasingly concerns technologies critical to a country’s sovereignty. If India can build important technologies and production systems itself, it can strengthen its ability to support strategic needs. The panel therefore connected deeptech growth with national capability, not only startup success.

Hareesh Chandrasekar said semiconductors have been weaponised in the current environment. He argued that India needs to develop sovereign capability. Agnit Semiconductors, described as India’s first vertically integrated gallium nitride semiconductor product startup, represents one effort to build across that ecosystem. Kaushik Mudda similarly called for basic building blocks needed to become a manufacturing superpower.

The work will take time. Chandrasekar said the ecosystem must be built over time, while the panel noted shortages in talent, funding, and supporting systems. Developing domestic capability therefore requires sustained policy, capital, engineering talent, and manufacturing development rather than isolated startup creation.

Deeptech products usually combine difficult engineering with physical production. They need long development timelines because companies must create, test, and refine hardware, manufacturing processes, or semiconductor products. Startup funding is necessary, but it cannot by itself provide the engineers, managers, factories, suppliers, or customers needed to build an industry.

The panel’s examples show this clearly. Robotics still lacks an ecosystem in parts of India, while precision manufacturing requires basic building blocks for national manufacturing strength. Agnit Semiconductors is building across a semiconductor ecosystem that Hareesh Chandrasekar said will take time. These efforts need more than early investment; they need patient capital and skilled people.

Global markets make the model more viable. Gokul N A said deep technology needs a global market, not India alone. Wider demand can support expensive development and larger production. India is improving its policy and funding environment, but the next challenge is connecting those resources to talent, manufacturing capability, and worldwide customers.