India readies $25 billion deep-tech push to catch up with the US and China

India is preparing to deploy $25 billion into deep tech startups as it tries to close the gap with the US and China, CNBC reported on 29 September, citing Indian Venture and Alternative Capital Association (IVCA) president Rajat Tandon. The government has committed $11 billion under the Research, Development and Innovation (RDI) Fund, which venture capital and private equity managers are expected to match, with a further $3-4 billion from other sources. The plan lands as Indian deep tech funding remains a fraction of the US: the sector received nearly $3 billion in 2025, its highest ever, against $136 billion in the US, according to an IVCA survey of 100 funds that also found nine out of 10 funds deploying into deep tech. Tandon said only about 2% of Indian investors can sign cheques above $10 million, leaving scale-up capital dependent on foreign money. Investors gathered at SuperReturn Asia told CNBC the ecosystem is still nascent but accelerating: vibe-coding startup Emergent, space company Skyroot Aerospace and sovereign AI company Sarvam became unicorns this year. Crane Venture Partners' Anandamoy Roychowdhury said US tariffs and export curbs - including Anthropic's June decision to cut off access to its Fable 5 and Mythos 5 models for foreign nationals - are pushing India to build domestic capability. This is a planned commitment, not confirmed disbursement: the $25 billion figure depends on private capital matching the government's anchor.

DTT summary based on CNBC's report. The full article is on the publisher's site.