India's AI and Deep Tech Revolution: Paving the Path to Global Tech Leadership

Imagine a future where India stands at the forefront of global technological innovation, with smart work replacing hard work and scientific breakthroughs rapidly translating into solutions for societal challenges. India’s technological sector plays a pivotal role in positioning the nation among the global tech superpowers. The nation is set to achieve this vision and has reinforced its commitment to advancing the technological sector.

While India has undergone a complete technological transformation in the previous three decades, the present times are centred around embracing deep technology and artificial intelligence (AI), the cornerstone of India’s tech vision. To accelerate India’s progress in the adoption of the latest technologies, several key initiatives have been introduced.

Artificial Intelligence gets a boost

The Government of India has recognized AI's disruptive ability to enhance productivity across various sectors. AI’s widespread adoption has been seamlessly integrated into daily lives, impacting how we perform tasks and the time taken to complete them. Moreover, AI has streamlined business operations and significantly reduced manual effort. With the belief that AI-driven education will equip the youth with skills needed to perform well in the job market, the Government has dedicated INR 500 crore towards the establishment of a Centre of Excellence (CoE) in Artificial Intelligence for Education. This initiative will spearhead AI research and its application within the education sector, fostering innovation and cultivating a technologically informed generation.

In 2024, the Union Cabinet approved the 'India AI mission' with a substantial outlay of INR10,371.92 crore over five years. Enhanced funding will further propel this mission -  driving research, development, and deployment of AI solutions across diverse domains. The mission aims to maximize India’s AI potential, focusing on funding innovative AI companies, supporting AI projects, and promoting ethical usage of AI. It will further strengthen India’s AI ecosystem through planned programs, improved data availability, the development of a skilled AI workforce, and encouraging greater collaboration between businesses.

 India’s untapped potential in deep tech

Deep technologies, consisting of AI, IoT, Machine Learning, Blockchain, Drones and AR/VR, hold the potential to address India's most pressing societal challenges. While India boasts the world's third-largest startup ecosystem, its deep tech domain ranks sixth, according to NASSCOM. While deep tech startups are booming in India, with over 3,600 already established and nearly 500 new ones in 2023 alone, the country still has a lot of room to expand its role in this untapped technology, highlighting India’s potential to become a leader in deep tech.

India’s 2025-26 budgetary announcement has proposed a substantial “deep tech fund of funds,” allocating Rs 20,000 crore to fuel the growth of India’s deep tech by investing in research, development and innovation. Complementing this financial commitment is the Draft National Deep Tech Startup Policy (NDTSP), a strategic framework designed to cultivate a thriving deep tech ecosystem. The NDTSP is designed to promote innovation, drive sustainable economic growth, and address critical societal challenges through the strategic use of deep tech-based research-driven solutions. This policy also focuses on strengthening the foundations for deep tech startups, providing them with the necessary resources and support to scale and succeed.

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Through significant funding initiatives and supportive policy frameworks, the nation is driving national productivity and working on its commitment to becoming a global leader in technologies like AI and deep tech.  Moreover, initiatives dedicated to these technologies will provide the much-needed impetus to startups and research institutions, offering innovative real-world solutions. These measures demonstrate India's proactive approach to embracing transformative technologies, ensuring its competitiveness in the global economy and addressing the country’s socio-economic challenges.

Authored by Amritanshu Anand, Co-Founder, Recruiterflow