Mains Practice Questions

Introduction

India's IT services sector has positioned the country as a global tech leader, contributing significantly to GDP and exports.

• However, India's performance in the deep-tech domain—characterized by cutting-edge technologies like AI, robotics, and biotechnology—remains suboptimal.

Body

Structural and Institutional Factors Behind the Gap:

• Long Gestation Period and Funding Mismatch
  • Deep tech ventures involve long R&D cycles and high capital requirements, often spanning 7–10 years, unlike the quicker returns associated with IT services.
    • Venture capitalists (VCs) typically prefer shorter investment horizons of 3–5 years
    • In 2023, Indian deep-tech startups saw a 77% drop in funding, with global investors showing limited interest.
• Talent Deficit and Brain Drain
  • India produces over 1.5 million engineering graduates annually, but only 3% possess new-age technological skills in areas like AI and quantum computing.
  • Brain drain to global innovation hubs like Silicon Valley and Canada exacerbates this talent gap, hindering domestic R&D capabilities.
• Inadequate Infrastructure
  • Deep tech requires specialized research infrastructure, such as supercomputing facilities and advanced testing labs.
    • However, India has less than 2% of global computer infrastructure, far behind the US and China, which dominate with 60% of resources.
  • The slow pace of infrastructure development, despite initiatives like the National Supercomputing Mission, increases costs for startups.
• Regulatory Ambiguity
  • Emerging sectors like drones, AI, and biotechnology often face unclear or evolving regulatory frameworks.
    • For instance, India’s drone policy evolved significantly between 2018 and 2021, delaying the adoption of drone technologies.
  • Lack of regulatory sandboxes further impedes the experimentation and scaling of innovations.
• Intellectual Property Challenges
  • Filing and defending patents remains expensive and time-consuming.
    • India's patent grant process averages 58 months, compared to 23 months in the US.

Measures to Build a Robust Innovation Ecosystem:

• Deep-Tech Clusters
  • Establish dedicated clusters for deep tech in major cities like Bengaluru (AI and robotics) and Hyderabad (aerospace and defense).
  • Provide tax incentives and subsidized infrastructure to encourage collaboration among startups, research institutions, and corporates.
• Deep-Tech Focused Venture Funds
  • Launch government-backed venture funds with longer investment horizons (7–10 years) tailored to deep tech.
  • Expand initiatives like the ₹10,000 crore Fund of Funds for Startups to allocate a percentage specifically to deep tech projects.
  • Collaborate with private VC firms through blended finance models to de-risk investments.
• Regulatory Sandboxes
  • Implement sector-specific regulatory sandboxes for AI, biotechnology, quantum computing, and autonomous systems.
  • For instance, an autonomous vehicle sandbox could allow companies like Ather Energy to test innovations under controlled conditions, accelerating regulatory clarity.
• Strengthening Talent Pool
  • Partner with IITs and private institutions to introduce specialized deep-tech curricula and industry-sponsored PhD programs in advanced fields like quantum computing and energy storage.
  • Launch national scholarships for deep-tech entrepreneurs to incentivize the retention of skilled talent.
• Open Innovation Platforms
  • Create national open innovation platforms to connect startups, corporates, and academia. For instance:
    • An AI for Healthcare platform could link startups like Niramai with hospitals to co-develop solutions for cancer detection.
• Deep-Tech Commercialization Fund
  • Allocate dedicated resources to transition academic research into market-ready products. For example:
    • A commercialization fund could support solid-state battery startups emerging from IISc Bangalore.
• Global Alliances
  • Forge partnerships with global hubs like Silicon Valley, Tel Aviv, and Singapore through:
    • The Indo-Israel Bilateral Workshop on Quantum Technologies serves as a model for cross-border collaborations.
• IP Ecosystem Strengthening
  • Simplify and expedite the patent filing process to reduce average grant time from 58 months to global standards (23 months).
  • Provide subsidies for global patent filing costs to make Indian startups more competitive internationally.

Conclusion

India's robust IT services sector and strong STEM foundation provide a promising base for deep-tech development. By implementing measures like specialized clusters, regulatory sandboxes, and global collaborations, India can position itself as a global leader in deep tech, driving solutions for grand challenges like climate change, healthcare, and sustainable development.