India’s DeepTech moment: a new frontier for international collaboration

Having grown up during its rapid modernisation, I’ve seen first-hand the country’s entrepreneurial energy and appetite for collaboration. And today, these characteristics are converging with strong government support and private capital to create one of the world’s most dynamic DeepTech ecosystems, with huge opportunities for ambitious UK tech companies.

From emerging market to innovation engine

While India still invests a modest 0.7 per cent of GDP in R & D, this figure is expected to rise fivefold in the coming decades, surpassing China’s current two per cent and approaching South Korea’s five per cent. Combined with a stable, reform-minded government and a tech-savvy population, India is ready for international innovators to enter, collaborate and scale.

And India is no longer just a cost-effective offshoring destination. It’s a global hub for technology innovation, development and manufacturing, driven by its:

• Unprecedented market scale
• Advanced digital infrastructure
• Targeted policy to support deeptech innovation
• World-leading STEM talent, and
• Robust capital environment.

As the world’s most populous country, India’s £3 trillion economy is projected to grow eightfold by 2047. Its expanding middle class and more than 900 million digital consumers offer an enormous proving ground for advanced technologies. And, with a median age of just under 29 years, this vast customer base has decades of growth potential built in.

Policy with purpose

Government programmes such as Startup India, Digital India, Make in India and the Production Linked Incentive scheme are accelerating innovation across AI, quantum computing, manufacturing and clean energy. India now counts more than 3,500 DeepTech pioneers among its 160,000-strong startup ecosystem.

Government policy has become a lever, not a barrier. The National Deeptech Startup Policy, an £8.25 billion Research, Development and Innovation Scheme, and initiatives in AI, quantum, semiconductors and green hydrogen, are building a coordinated framework for research, partnerships and global competitiveness.

India’s talent base is also one of its greatest strengths.

With 1.5 million engineers graduating annually – a third of the world’s STEM graduates – the country offers depth and quality across sectors. This distributed talent is increasingly driving global R & D and product innovation, not just service delivery.

In addition, India’s investment ecosystem is flourishing. Venture capital and private equity flows are strong, with a new sovereign DeepTech Fund of Funds expanding access to capital. Combined with startup-friendly regulations and active corporate participation, India has become one of the world’s most attractive innovation investment environments.

Six sectors to watch

Tech companies will find particularly strong prospects in six sectors:-

1. Aerospace & defence – liberalisation has opened the door for co-investment and co-production with Indian partners. The country’s burgeoning spacetech sector exemplifies its DeepTech capability.

2. Electronics, IT & quantum – the world’s second-largest smartphone producer is now advancing rapidly in IoT, data centres, AI and quantum computing.

3. Advanced manufacturing – the Make in India initiative has accelerated a shift to high-tech production, supported by incentives for Industry 4.0 applications and semiconductors.

4. Automotive & electric mobility – as the world’s third-largest car market, India offers opportunities in EVs, connected and autonomous vehicle technologies and mobility platforms.

5. CleanTech – India sources 50% of its electricity from non-fossil fuels and is aiming for 500 GW by 2030, creating scope for innovation in energy, agriculture, food and water technologies.

6. Medtech & life sciences – With a MedTech market projected to hit £38 billion and life sciences surpassing £2 trillion by 2033, India’s R & D clusters are fertile ground for collaboration.

Cracking the code for UK success

For UK tech firms, success in India demands careful planning and local engagement. I offer five pieces of advice:-

1. Route to market – choose the right entry model, whether partnership, joint venture or local distributor. Collaboration with experienced Indian players can unlock faster growth and shared success.

2. Product localisation – Adapt your offering for regional needs. Price sensitivity, climate conditions and cultural nuances matter.

3. Local expertise – Engage trusted Indian advisors to navigate regulation, business practices and relationships. An on-the-ground presence is invaluable.

4. Relationships and commitment – Success requires trust and partnership. Smaller, agile collaborators can often deliver more impact than large incumbents.

5. Understand India’s diversity – With 28 states, 22 official languages and vast cultural variation, India is not a uniform market. Regional insights and adaptability are key to scalable success.

The moment to move

India’s DeepTech revolution, then, is gathering pace. Government policy, global capital and domestic talent are aligned to drive international collaboration and technology transfer.

Competition is intensifying, but early movers can still gain a meaningful advantage. For those prepared to invest time, build relationships and tailor their approach, India offers not just a vast market but a gateway to innovation that can shape global industries for decades to come.

• Intralink has teams in New Delhi, Mumbai and Bangalore. For more information visit https://www.intralinkgroup.com/markets/india