India Bets Big on AI and Deep Tech Future | Image Source: coingeek.com
DELHI NOTICES, India, April 14, 2025 – In an ambitious offer to consolidate its status as a global leader in emerging technologies, India has presented a bold push towards artificial intelligence (AI), deep technology, machine learning (ML) and related innovation spaces, supported by a $10 billion fund initiative. The movement was announced by the Minister of Trade and Industry Piyush Goyal in the recent Startup Mahakumbh 2025 – a dynamic congregation of talents of entrepreneurs, investors and global technology enthusiasts from India.
The Goyal announcement marks an important turning point for India’s technological ambitions, with the aim not only of feeding local startups, but also of a strategic reconstitution of India within the global innovation ecosystem. Funding, as part of a renewed government effort to empower startups and high-tech industries, underscores a broader vision: turning India from a services-based economy to a future technology centre. According to Goyal, this initiative is the backbone of the Indian mission Viksit Bharat 2047: the national plan to become an economy developed over the next two decades.
What is the 10,000-acre Indian Fund and why is it important?
At its heart, the 100,000 hectare fund is not a direct financing mechanism for startups. Instead, it operates through financial intermediaries – in particular the investment funds Alterna (IDA) registered by SEBI – which in turn invest in start-ups that meet the government’s innovation criteria. Managed by the Indian Small Industry Development Bank (SIDBI), this mechanism provides a catalytic layer of capital, aimed at attracting co-investment from private investors, venture capital and institutional donors.
The intent is clear: by mitigating risks and providing partial financial support, the government seeks to encourage the private sector to invest capital in high-risk firms in IV, robotics, biotechnology, precision manufacturing and other advanced technologies. According to a senior official quoted by Business Standard, “We’re going to devote a large part of this 10,000-kronor fund mainly to new age technology, AI and machine construction.”
How does Startup Mahakumbh fit into India’s broader innovation agenda?
Startup Mahakumbh 2025 was more than a start-up capability window – it was a sign of India’s willingness to expand its business ecosystem. Held from April 3 to 5, the event had more than 3000 startups, 1000 investors and incubators, and more than 10,000 delegates from more than 50 countries. According to the Ministry of Trade and Industry, more than 107,000 participants attended the two-day event, making it one of the largest exhibitors of innovation in South Asia.
The event was designed around ten theme pavilions, each lighting sector critical to India’s technological future: AI, Healthtech, biotechnology, agrotech, fintech, cybersecurity, defense technology, mobility and more. Companies received a dedicated platform through Startup Booths and Pods, which allowed them to interact directly with investors, accelerators and even decision makers. AI-led brain mapping platforms with climate technology solutions and the manufacture of military-grade drones, the diversity and quality of the innovations presented, highlighted India’s growing technical depth.
What message did Piyush Goyal send to the Indian startup community?
Goyal’s message was clear, personal and motivating. During the event, he highlighted India’s growing exploit in areas such as data analysis, energy efficiency and defence technologies. He stressed that the role of government is not to regulate innovation but to facilitate it, by providing support structures, access to capital and institutional orientation without micro-management of the creative process of startups.
That’s the base. It is on this basis that I am sure that India will pay very large sums in the world of innovation. We will ensure that our presence is felt at the global level about products of great importance. “
He also announced a new line of government support for startups to report harassment of government agencies or to share constructive comments. It is a wink to improve the ease of doing business in an area where time, clarity and regulatory simplicity are essential.
How does this relate to India’s economic growth objectives?
India currently occupies the fifth largest economy in the world, but Goyal believes this is just the beginning. According to him, India is on track to overcome Germany and Japan, becoming the third largest economy by 2027. The main drivers? A resilient and rapidly growing start-up ecosystem, increased national innovation and strategic investments in critical technology infrastructure.
Viksit Bharat’s vision of transforming India into a developed economy is largely based on this dynamic. The logic is simple: technology accelerates productivity, attracts global investment, increases competitiveness and ultimately stimulates GDP growth. As Goyal rightly pointed out, sectors such as 3D manufacturing, robotics and AI will be essential to this transformation.
“We are not just building businesses,” Goyal explained, “we are building the pillars of a future economy
Why are AI and deep technology at the centre of India’s investment?
Simply put, these sectors represent the frontier of economic disruption. The countries that invest early in artificial intelligence, quantum computing and robotics are those that make up the global supply chain of tomorrow. For India, which already has a lot of engineering skills and a thriving IT services industry, the next logical step is to raise the value chain from service delivery to basic innovation.
AI applications are far-reaching, from precision agriculture and predictive health to smart governance and real-time infrastructure monitoring. Advanced technology also supports crucial advances in defence and manufacturing. By building indigenous capacities in these regions, India can reduce its dependence on imported technologies and develop intellectual property through global commercialization.
“It’s about sovereignty, not only in defence, but also in data, in innovation, in the economy,” said an official of the Ministry of Commerce at Startup Mahakumbh. In this context, the IA and deep technology approach is less a trend and more a strategic imperative.
How will national investors benefit from or participate in this ecosystem?
By encouraging, Goyal also highlighted the role of national capital in this emerging technological landscape. He called on both institutional and individual Indian investors to contribute to building a strong local investment culture. According to Goyal, overdependence on foreign capital creates vulnerability, particularly in strategic industries such as semiconductors, defence technologies or energy intelligence systems.
According to the Economic Times, the Government Fund’s plan is structured to discredit early investment, making Indian investor participation more attractive. Moreover, startups recognized under the Startup India initiative benefit from numerous tax and non-tax benefits, creating a more pro-support ROI. With more than 1.50,000 recognized companies covering 55 sectors, diversification potential is significant.
Is India ready to play a global role in AI and technological innovation?
The signals are promising, but challenges remain. On the other hand, India has a strong STEM education pipeline, world-renowned IT service companies and a growing start-up culture. Events like Startup Mahakumbh provided essential proof of the concept, demonstrating that Indian innovators can build solutions with world-class quality and relevance.
However, to become a global player, India needs to overcome infrastructure barriers, continuity of financing, intellectual property protection and technology transfer policies. Training programmes for workers for future industries will also be essential. However, by focusing its zero billion fund on future sectors, India is sending a clear message: the next wave of global technological progress can have a very good Indian DNA.
And this time, India does not expect to be invited to the table. He’s building his own.
