India’s deeptech ecosystem is at a transformative juncture, blending cutting-edge innovation with a growing demand for sustainable, long-term solutions. Sanjeev Bikhchandani, Co-founder, Info Edge, a prominent figure in India’s entrepreneurial and investment landscape, recently shares his insights as a part of a panel discussion at an industry summit on the critical interplay between private investment and government collaboration in driving the deeptech sector forward.
Private Investment: Accountability And Expectations
Deeptech startups, spanning sectors like artificial intelligence, robotics and quantum computing, often require significant upfront investment. In 2023, these startups raised approximately $3 billion, reflecting the sector’s strong growth trajectory, according to a Nasscom report. However, private capital comes with conditions, as Bikhchandani notes, “Private investments expect returns, nobody is doing charity.”
Private investors bring more than just funding, they instill a market-oriented approach and ensure the commercial viability of ventures. “Apart from capital, [they bring] the lens of accountability for markets,” Bikhchandani explains. This accountability drives startups to prioritise efficiency and profitability, aligning innovation with tangible outcomes.
In contrast, the government’s approach often emphasises long-term national priorities, such as technological sovereignty and social equity. While these objectives are vital, the slow pace of public funding can hinder rapid innovation. “Private investors will not wait, they will not be that patient,” Bikhchandani remarks, emphasising the urgency private capital brings to the table.
Government Patience Meets Private Sector Agility
The government has shown remarkable foresight in fostering India’s deeptech ecosystem through initiatives like iDEX (Innovations for Defence Excellence) and the National Deeptech Strategy. These programs provide a foundation for startups to explore complex technologies without the immediate pressure of profitability. However, he argues that a purely government-driven approach might limit scalability and states, “The government can wait 15 years for a company to succeed,” he said.
By involving private investors early in the process, the government can inject much-needed agility and market accountability into its initiatives. “The government should involve the private sector early,” Bikhchandani suggests, adding that fostering trust between these stakeholders is essential for balanced growth.
A key challenge in these collaborations is the perception of startups as primarily profit-driven entities. While profitability is crucial, he stresses the importance of looking beyond short-term financial gains. Public-Private Partnerships (PPPs) must be built on trust, allowing startups the flexibility to innovate while ensuring that societal goals are met.
India has already seen success stories where PPPs have accelerated development. The liberalisation of geospatial data, for instance, created opportunities for startups to partner with the government on projects in agriculture, urban planning, and disaster management. These initiatives showcase how mutual trust and collaboration can unlock transformative solutions.
A Collaborative Path Forward
As India aims to establish itself as a global leader in deeptech, the collaboration between private and public sectors must evolve. Bikhchandani emphasises the need for inclusive partnerships, stating, “The government should invite private sector investors to engage.”
Bringing private investors into the fold during the early stages of policy-making and project planning can align long-term national priorities with short-term market demands. With a robust ecosystem built on trust, accountability, and shared vision, India’s deeptech sector can overcome its challenges and achieve unprecedented growth.
By striking this balance, India has the potential to not only attract global investments but also address critical societal issues through innovation. In doing so, the country can set an example for how nations can leverage private capital and public policy to drive transformative change.
