India commits $25 billion to Deep Tech startups to cut foreign tech reliance

September 29, 2026 at 11:06 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

India is preparing to deploy $25 billion to support Deep Tech startups, aiming to reduce reliance on frontier foreign technology. The government has committed $11 billion under the Research Development Infrastructure Fund, matched by venture capital and private equity. The move comes as the U.S. and China lead the global AI race and Washington's export curbs raise concerns about tech access.

Key Facts

India's government has committed $11 billion under the Research Development Infrastructure Fund, to be matched by venture capital and private equity fund managers.
Total Deep Tech investment available is expected to reach $25 billion, including an additional $3-4 billion.
In the last decade, India invested $11.6 billion in Deep Tech, according to Rajat Tandon, president of the Indian Venture and Alternative Capital Association.
Earlier this year, startups Emergent, Skyroot, and Sarvam became unicorns with valuations above $1 billion.
Anthropic disabled access to its Fable 5 and Mythos 5 models for foreign nationals in June, complying with a U.S. export-control directive.

Funding Structure

The Indian government has committed $11 billion under the Research Development Infrastructure Fund. Venture capital and private equity fund managers will match this amount. An additional $3-4 billion will bring the total available for Deep Tech investments to $25 billion. Rajat Tandon, president of the Indian Venture and Alternative Capital Association, disclosed these figures to CNBC.

Geopolitical Drivers

China and the U.S. currently lead the global AI race. Washington's curbs on tech exports make U.S. technology unreliable for India. Anandamoy Roychowdhury, managing director of Crane Venture Partners, said U.S. tariffs help the Deep Tech segment. India fears that important technology can get cut off at any point. In June, Anthropic disabled access to its Fable 5 and Mythos 5 models for foreign nationals, complying with a U.S. export-control directive.

Ecosystem Momentum

Shweta Rajpal Kohli, president and CEO of Startup Policy Forum, noted a dramatic acceleration of innovation in India's Deep Tech space. Some companies are moving from prototype to real commercialization. Earlier this year, Emergent, Skyroot, and Sarvam became unicorns with valuations above $1 billion. About 80% of Crane Venture Partners' $150 million APAC fund is concentrated in India.