Draft National Deeptech Startup Policy: An Overview And Reactions The recommendations have been put under nine themes including access to funding, strengthening of intellectual property rights, and easing regulatory challenges

Two weeks ago, the Centre released the draft National Deep Tech Startup Policy (NDTSP) for public consultation. This was done in consultation with other government departments, academia and other stakeholders. According to the government, NDTSP aims to address the challenges confronting deep tech startups through definitive policy interventions to create a conducive ecosystem. We reached out to industry stakeholders to understand the hits and misses of the draft. But before that, an overview of the draft is below.

• The draft was released by a consortium on July 31,
• It is now open for public consultation
• The recommendations have been put under nine themes including access to funding, strengthening of intellectual property rights, and easing regulatory challenges
• The idea is to ensure India is in a better position in the global deeptech value chain
• A lot of focus will be given to areas like semiconductors, Artificial Intelligence (AI) and space tech
• The policy seeks to bolster research and development in deeptech startups

The industry's thoughts on the policy

"NDTSP marks a significant stride in nurturing India's deep tech ecosystem. It deftly recognizes the evolving nature of deep tech startups, addressing their challenges with a comprehensive approach. The policy's emphasis on nurturing research and development through financial incentives and improved assessment practices fosters innovation that can address India's pressing challenges. Moreover, its commitment to strengthening the intellectual property regime through measures like a unified IP framework, streamlined patent processes, and global positioning showcases a dedication to safeguarding deep tech innovations," said Beerud Sheth, CEO and co-founder, Gupshup.

Founded in 2004, Gupshup serves over 45,000 businesses across marketing, sales, and customer support automation verticals in industries such as BFSI, e-commerce, retail, travel, edtech, among others.

"The recommended measures included in the draft National Deep Tech Startup Policy are certainly a step in the right direction in fostering innovation in the deeptech industry in our nation. By nurturing this sector, we can propel long-term economic progress in our country and position our industries to take the lead on the global stage," said Neha Singh, co-founder and CEO, Tracxn.

India is one of the fastest-growing deep-tech markets in the world. According to a 2022 NASSCOM study, deeptech startups in India raised $2.7 billion in venture funding in 2021, and account for over 12 per cent of the country's overall startup ecosystem. "Indian deeptech startups initially borrowed the visions of their American counterparts. However, in the last few years, Indian deeptech startups have branched out and created a niche and unique space. Recent start-ups such as Aurassure, Pixxel, Skyroot, and Genrobotics now focus on developing India-specific solutions," said Faisal Ahmad, co-founder and CEO, BIS Research.

While universities and private investors were already backing deep-tech startups, a formal policy to strengthen this space was needed, he said, adding that in this regard, the NDTSP policy is very welcomed. "Focusing on providing funding support, mentorship, and a robust IP ecosystem, will help India create better-equipped incubators and labs for start-ups and secure systems for international participation," he added.

The industry feels the policy signifies a positive step forward for India's startup landscape, offering crucial backing and resources to deeptech startups. "Indian startups often encounter challenging requirements as they embark on their journey to create groundbreaking products. Additionally, the policy fosters collaboration among startups, educational institutions, and research organizations, creating avenues to explore cutting-edge research opportunities," said Tarun Wig, CEO and founder, Innefu Labs.

To further enhance the policy's effectiveness, he shares below some key areas that could be addressed.

• The policy could tackle the intricate regulatory hurdles that frequently hinder the growth of deeptech startups' due to complex bureaucratic processes.
• Simplification of regulations would undoubtedly pave a smoother path for growing startups.
• The policy would play a more proactive role in inspiring businesses and government bodies to embrace deeptech solutions, a crucial step for the success of these startups.
• The policy's objectives, aimed at reinforcing India's position in global deep tech domains like semiconductors, AI, and space tech, can substantially benefit various pioneering enterprises.

Experts also say that within the venture capital landscape, the national deeptech startup policy emerges as a significant chapter in our innovation narrative. "Its framework envisions a harmonious collaboration between academia, research institutions, and ambitious startups, designed to foster growth in the deep tech sector. The policy administers grants and incentives, resonating through the deep tech landscape, where critical challenges demand solutions that redefine boundaries," said Somdutta Singh, founder and CEO, Assiduus Global Inc. & LP angel investor.

Overall, while the experts laud the draft policy, they also opine that the true measure of success lies not solely in the policy's conception but in its effective execution.