Today, as Finance Minister Nirmala Sitharaman unveiled the Union Budget 2025, deep tech was one of the areas she touched upon as part of her technology-related announcements.
In the Budget, Sitharaman stated that the government would explore a deep tech fund of fund. Additionally, over the next five years, 10,000 fellowships for technological research in IITs, NITs, and IISc will be awarded under the PM Research Fellowship Scheme, with increased financial support.
The goal is to accelerate the next wave of Indian entrepreneurs and support innovative startups and companies in the deep tech sector.
“The plan for a new Deep Tech Fund of Funds is a crucial step towards advancing deep tech innovation in India. This signals a clear intent from the government to position India strongly in the global AI race, which is much needed boost for deep tech startups specially in AI and space tech,” said Sridhar Parthasarathy, co-founder and general partner at Bluehill.
Building on the July budget plan, Sitharaman also proposed a Rs. 20,000 crore investment to support research, development, and innovation spearheaded by the private sector.
Earlier, Amitabh Kant, the former CEO of NITI Ayog and the G20 Sherpa for India, had also stressed having a fund of funds. “The government should focus on two key actions: creating a fund of funds and launching large-scale challenges that address India's critical needs. The only way to capture the market is by launching new disruptive start-ups. Only way India can raise its GDP nine times is with the help of deep-tech.”
The announcements demonstrated the government's attempt to establish India as a leader in deep technology, innovation, and scientific research while enhancing ties between the public and private sectors.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
