Why in News?

• According to the Principal Scientific Advisor, the government will be sending a note on a new ‘deep tech’ policy for India – National Deep Tech Startup Policy (NDTSP), in the coming weeks to the Union Cabinet for approval.
• In July 2023, the government unveiled a draft of the policy for public comment and following feedback from industry, a final version is reportedly ready.

What’s in Today’s Article?

• What is Deep Tech?
• Background in which the Draft NDTSP Released
• Key Highlights in the Draft NDTSP
• Issues with India’s ‘Deep Tech’ Startup Ecosystem

What is Deep Tech?

• Deep technology/tech refers to advanced technologies based on some form of substantial scientific or engineering innovation.
• The innovations are “deep” in that they are sophisticated, very advanced answers to complex challenges or issues.
• Examples of deep-tech breakthroughs include genomics, robotics, nanotechnology and clean energy initiatives coming from research labs and academia.
• Deep-tech startups and companies seek to provide answers to complex problems through technologies and processes that typically require lengthy R&D cycles.
  • Crucially, businesses and startups based on ideas that are easily replicable do not qualify as deep tech startups.
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• Deep tech differs from high tech, which refers more broadly to technical innovations and advancements.
  • High-tech companies are not necessarily focused on profound scientific or engineering breakthroughs.

Background in which the Draft NDTSP Released:

• ‘Deep tech’ is a buzzword in tech and startup circles with no precise definition as yet.
• The PM’s Science, Technology, and Innovation Advisory Council (PM-STIAC) recommended in 2022 for the creation of a National Consortium and a Working Group to propose –
  • A comprehensive policy framework to address the needs and strengthen the Indian deep tech startup ecosystem.
• Chaired by the Principal Scientific Adviser (Prof. Ajay Kumar Sood) to the Government of India, the apex-level National Consortium represents a broad spectrum of stakeholders (from DPIIT, ISRO, DRDO, NITI Aayog, MeitY, etc).
• Under the overall guidance of the National Consortium, a draft version of the NDTSP has been developed through an extensive multi-stakeholder consultative process.

Key Highlights in the Draft NDTSP:

• This policy complements and adds value to the existing Startup India policies, programmes and initiatives, by –
  • Fostering a conducive ecosystem for deep tech startups to thrive and
  • Addressing their unique and complex challenges.
• The draft NDTSP captures various new policy instruments and suggests necessary policy changes under the following themes:
  • Nurturing Research, Development & Innovation
  • Strengthening the Intellectual Property Regime
  • Facilitating Access to Funding
  • Enabling Shared Infrastructure and Resource Sharing
  • Creating Conducive Regulations, Standards, and Certifications
  • Attracting Human Resources & Initiating Capacity Building
  • Promoting Procurement & Adoption
  • Ensuring Policy & Program Interlinkages
  • Sustaining Deep Tech Startups

Issues with India’s ‘Deep Tech’ Startup Ecosystem:

• According to the draft ‘deep tech’ policy document, there are 10,298 startups (as of May 2023) recognised by the DPIIT and which are classified across various sub-sectors within the larger deep tech space.
  • This means, only about 10% of startups are ‘deep tech’ currently. That is not a very good sign and it will take much more effort and handholding.
• One big problem for improving ‘deep tech’ startups is the lack of funding.
  • Unlike startups focused on fintech or retail software, the quantum of funds needed is vastly larger.