Rockets are 3D-printed, nuclear reactors fit in your backyard, and AI unlocks cures for diseases Big Pharma ignores is happening in the quiet corners of India’s startup ecosystem. While the world fixates on ecommerce giants, a covert wave of deeptech innovation is rewriting the rules of what’s possible. But how did India, a nation long celebrated for its IT services, pivot to building audacious tech that could rival global superpowers?
The Hidden Spark
India’s tech story has long been one of services, think call centers, IT outsourcing, and software support for global giants.
A potent mix of talent, ambition, and a world hungry for frontier tech is rising. In the past decade, India’s AI talent pool has exploded by 252% since 2016, outpacing many countries. Yet, the same report reveals a sobering truth: India’s AI startups raised just $1.16 billion in 2024, a fraction of the $109.1 billion poured into U.S. AI firms.
So, how is India punching above its weight?
The answer lies in a new breed of founders who aren’t chasing quick wins. They’re betting on moonshots, 3D-printed rockets, secure semiconductor cores, compact nuclear reactors. These aren’t household names yet, but they’re backed by visionaries who see India not just as a service hub but as a product powerhouse.
Its whale hunting time, pooling resources to chase monumental, game-changing ideas. It’s a mindset shift: from following orders to inventing the future.
The Rocket Makers
A Chennai-based startup that’s 3D-printing rockets. Yes, rockets. In a country where space tech was once the domain of government agencies, this company is slashing costs and timelines by using additive manufacturing to build launch vehicles. Their goal? To make space accessible for smaller payloads, challenging giants like SpaceX. In 2024, they secured a multi-million-dollar contract with a global satellite provider, proving India can play in the big leagues. This is about redefining what “Made in India” means. Evidence? Their proprietary tech has cut production time by 60% compared to traditional methods.
AI for the Forgotten
A Bengaluru-based AI startup tackling rare diseases like muscular dystrophy. Big Pharma often ignores these conditions, too little profit, too much risk. But this company uses AI to accelerate drug discovery, slashing development time and costs. They’ve already licensed critical intellectual property to a major pharmaceutical giant, a feat that’s turning heads globally.
The founder’s pitch? “Why can’t we solve problems the world’s given up on?”
Drug development costs have ballooned to $2.6 billion on average, yet this startup’s AI models are reducing timelines by up to 30%.
The numbers are singing a compelling story. India’s #deeptech sector, though nascent, is growing at a breakneck pace. In 2024, deeptech was among the top six funded sectors in India, alongside fintech and healthtech.
Venture capital is waking up, too. A New York-based fund announced a $100 million commitment to Indian AI and deeptech startups in 2025, targeting fintech and B2B SaaS. Family offices chipped in over $1 billion last year, signaling a shift from traditional investments to high-risk, high-reward bets.
But it’s not just money. India’s universities are churning out domain-specific talent, engineers trained not just in coding but in fintech, space, and biotech. One fintech founder emphasized the need for colleges to go beyond generic engineering degrees, advocating for specialized skills to fuel deeptech growth. Meanwhile, startups are allocating 10-20% of their resources to projects six to eight quarters out, a strategy that’s paying off. A Chennai-based fintech infrastructure firm, now valued at $800 million, started this way, building foundational tech years before it became mainstream.
(thebrink exclusive insight) A New Way of Thinking
India’s deeptech surge challenges the global narrative that innovation hubs are confined to Silicon Valley or Shenzhen. But to sustain this, India must disrupt its own mindset:
From Services to Products: India’s services legacy is a strength, but it’s time to prioritize products. Think global phenomena, not just local solutions.
India is not lacking engineering talent. India is lacking the ability to package ideas as world-class products.
Embracing Long-Term Bets: Deeptech isn’t about instant gratification. Unlike ecommerce, these ventures need 8-12 years to hit profitability, longer than most VC funds’ lifecycles. Conglomerates like Tata or Reliance could bridge this gap by backing R&D with their massive balance sheets.
Reverse the Brain Drain: India’s losing talent faster than it’s gaining it, with a -1.55% talent migration rate. To compete, it must become a magnet for global innovators, like the UAE (4.13% migration rate). Tax incentives, research grants, or even a “Deeptech Visa” could flip the script.
Redefine Deeptech: It’s not just AI or robotics. It’s about creating intellectual property that reshapes industries, think proprietary algorithms, green energy solutions, or next-gen chips. India’s startups are already doing this, but need louder champions.
The trajectory is clear: India’s deeptech ecosystem is on the cusp of a breakout. By 2027, the AI sector alone could hit $23 billion, growing at 32% annually. But the real game-changer:
Global Leadership in Niche Markets: India can dominate niche deeptech areas like secure semiconductors or small-scale nuclear reactors, where agility wins over scale.
Public-Private Synergy: Government-backed funds, like China’s, could signal private investors to follow, amplifying deeptech investments.
Tier 2 and 3 Innovation Hubs: Cities like Patna, Jaipur could become deeptech hotspots if industry-led research reaches beyond metros.
Challenges: Corporate governance issues, as seen in high-profile startup failures, could spook investors. Layoffs, though down from 2023, still hit 9,000 employees in 2024. And the funding gap of $109 billion in the U.S. vs. $1.16 billion in India, won’t close overnight.
Deeptech is redefining power, from economic might to technological sovereignty. For readers of The Brink 2028, this is your front-row seat to the future. Our platform dives deep into trends that shape tomorrow, from AI breakthroughs to geopolitical shifts.
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-Chetan Desai (chedesai@gmail.com)
