{"id":45528,"date":"2025-11-08T10:06:02","date_gmt":"2025-11-08T04:36:02","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=45528"},"modified":"2025-11-10T15:39:55","modified_gmt":"2025-11-10T10:09:55","slug":"indias-20k-cr-deep-tech-fund","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/indias-20k-cr-deep-tech-fund\/","title":{"rendered":"India\u2019s \u20b920,000 Cr Deep Tech Fund \u2013 Concerns Over Misuse &#038; Policy Gaps"},"content":{"rendered":"<h2>What\u2019s in Today\u2019s Article?<\/h2>\n<ul>\n<li>India Deep Tech Funding Latest News<\/li>\n<li>Deep Tech<\/li>\n<li>Evolution of India\u2019s Deep Tech Ecosystem<\/li>\n<li>Parliamentary Panel Flags Concerns Over \u20b920,000 Cr Deep Tech Fund<\/li>\n<li>India Deep Tech Funding FAQs<\/li>\n<\/ul>\n<h2>India Deep Tech Funding Latest News<\/h2>\n<ul>\n<li>A Parliamentary Standing Committee has raised concerns over the Government\u2019s plan to allocate \u20b920,000 crore as a 50-year interest-free loan to deep tech sectors.\u00a0<\/li>\n<li>While acknowledging the initiative\u2019s potential to boost research, the committee warned of possible fund misallocation, national security risks, and a low return on investment.<\/li>\n<\/ul>\n<h2>Deep Tech<\/h2>\n<ul>\n<li>Deep Tech refers to advanced and disruptive technologies that rely on significant scientific and engineering breakthroughs.\u00a0<\/li>\n<li>These innovations often require long-term research and development and have the potential to create transformative changes across industries such as healthcare, defense, artificial intelligence, and biotechnology.<\/li>\n<\/ul>\n<h3>Examples<\/h3>\n<ul>\n<li><strong>Artificial Intelligence (AI) &amp; Machine Learning<\/strong> \u2013 Self-learning algorithms, autonomous systems.<\/li>\n<li><strong>Quantum Computing<\/strong> \u2013 High-speed computation beyond classical computing limits.<\/li>\n<li><strong>Biotechnology &amp; Genetic Engineering<\/strong> \u2013 CRISPR gene editing, personalized medicine.<\/li>\n<li><strong>Semiconductors &amp; Advanced Materials<\/strong> \u2013 Nanotechnology, graphene-based materials.<\/li>\n<li><strong>Aerospace &amp; Defense Technologies<\/strong> \u2013 Hypersonic vehicles, advanced missile systems.<\/li>\n<li><strong>Renewable Energy &amp; Battery Technologies<\/strong> \u2013 Solid-state batteries, hydrogen fuel cells.<\/li>\n<\/ul>\n<h3>Key Features<\/h3>\n<ul>\n<li><strong>High Research &amp; Development Intensity<\/strong> \u2013 Requires deep scientific knowledge and long-term investment.<\/li>\n<li><strong>Disruptive Innovation<\/strong> \u2013 Capable of significantly transforming industries.<\/li>\n<li><strong>High-Risk, High-Reward<\/strong> \u2013 Often uncertain in early stages but can yield substantial economic and strategic benefits.<\/li>\n<li><strong>Interdisciplinary Approach<\/strong> \u2013 Combines multiple fields such as AI, biotech, and quantum physics.<\/li>\n<\/ul>\n<h2>Evolution of India\u2019s Deep Tech Ecosystem<\/h2>\n<ul>\n<li>India\u2019s DeepTech ecosystem is growing rapidly, though still in its early stages compared to global markets.\u00a0<\/li>\n<li>According to NASSCOM\u2019s report &#8220;India\u2019s DeepTech Dawn: Forging Ahead&#8221;, the country had over 3,600 DeepTech startups, with 480 launched in 2023\u2014double the number from 2022.\u00a0<\/li>\n<li>While India ranks as the third-largest startup ecosystem globally, its DeepTech sector stands at the 6th position.<\/li>\n<\/ul>\n<h3>Government Policies and Investments Driving Growth<\/h3>\n<ul>\n<li>The Indian government is actively promoting DeepTech through key initiatives, including:\n<ul>\n<li><strong>Draft <\/strong><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/ndtsp\/\" target=\"_blank\"><strong>National DeepTech Start-up Policy<\/strong><\/a> \u2013 Aimed at fostering innovation.<\/li>\n<li><strong>\u20b91 Lakh Crore Corpus (Interim Budget 2024)<\/strong> \u2013 To boost research and development.<\/li>\n<li><strong>\u20b91,000 Crore Venture Capital Fund for the Space Sector<\/strong> \u2013 Supporting space-tech startups.<\/li>\n<li><strong>National Quantum Mission (2023)<\/strong> \u2013 Investment in quantum computing and communications.<\/li>\n<li><strong>India AI Mission<\/strong> \u2013 Strengthening AI research, innovation, and startups.<\/li>\n<li><strong>Othe Initiatives <\/strong>like the Atal Innovation Mission, NITI Aayog\u2019s programs, and Start-up India are providing support through accelerators and incubators.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3>Union Budget 2025-26 and Deep Tech<\/h3>\n<ul>\n<li><strong>Research, Development and Innovation<\/strong> &#8211; \u20b920,000 crore to be allocated to implement private sector driven Research, Development and Innovation initiative announced in the July Budget.<\/li>\n<li><strong>Deep Tech Fund of Funds<\/strong> &#8211; Deep Tech Fund of Funds to be explored to catalyze the next generation startups.<\/li>\n<li>It also unveils key initiatives for the tech sector, such as enhanced India AI mission funding, an AI Centre of Excellence for Education etc.<\/li>\n<\/ul>\n<h2>Parliamentary Panel Flags Concerns Over \u20b920,000 Cr Deep Tech Fund<\/h2>\n<ul>\n<li>A Parliamentary Standing Committee has raised concerns over the Government\u2019s \u20b920,000 crore interest-free loan scheme for deep tech sectors, warning that private entities could benefit disproportionately at the government\u2019s expense.<\/li>\n<li>It also questioned the ability of fund managers to select impactful projects and suggested that directing funds to government institutions could have yielded better outcomes.<\/li>\n<\/ul>\n<h3>Underutilisation of Funds in Scientific Research<\/h3>\n<ul>\n<li>The committee noted that the Department of Scientific and Industrial Research had not fully utilised its budget.\n<ul>\n<li>Over half of the allocated funds remaining unused as the financial year nears its end.\u00a0<\/li>\n<\/ul>\n<\/li>\n<li>It supported an additional allocation of \u20b9363.9 crore but flagged that 62% of the department\u2019s budget was spent on salaries and pensions, leaving only 31% for research, which limits infrastructure development and innovation.<\/li>\n<\/ul>\n<h3>Concerns Over Biotechnology PSUs<\/h3>\n<ul>\n<li>The committee expressed concern over the poor state of two public sector undertakings under the Department of Biotechnology\u2014BIBCOL and IVCOL.\u00a0<\/li>\n<li>It stressed the importance of reviving these PSUs to ensure affordable vaccine availability and strengthen India&#8217;s position in the global vaccine market.\u00a0<\/li>\n<li>The committee recommended securing revival packages to enable these PSUs to support vaccine exports and enhance self-reliance in vaccine production.<\/li>\n<\/ul>\n<h3>Recommendations for Policy Framework<\/h3>\n<ul>\n<li>The panel urged the government to address these concerns while formulating guidelines for the deep tech fund, ensuring transparency, accountability, and effective allocation to maximize national benefits.<\/li>\n<\/ul>\n<h2>India Deep Tech Funding FAQs<\/h2>\n<p><strong>Q1.<\/strong> What is India\u2019s \u20b920,000 Cr deep tech initiative?<\/p>\n<p><strong>Ans.<\/strong> A government-backed scheme offering interest-free loans to boost deep tech research and innovation in emerging technologies.<\/p>\n<p><strong>Q2.<\/strong> Why is there concern over the deep tech fund\u2019s allocation?<\/p>\n<p><strong>Ans.<\/strong> Experts fear private firms may benefit disproportionately, while fund mismanagement could limit real research impact.<\/p>\n<p><strong>Q3.<\/strong> How is deep tech crucial for India\u2019s growth?<\/p>\n<p><strong>Ans.<\/strong> Advanced tech like AI, quantum computing, and biotech can drive innovation in defense, healthcare, and energy sectors.<\/p>\n<p><strong>Q4.<\/strong> What are the panel\u2019s recommendations for fund management?<\/p>\n<p><strong>Ans.<\/strong> Strengthen transparency, direct funds to public research institutions, and ensure better selection of impactful projects.<\/p>\n<p><strong>Q5.<\/strong> How does underutilization of research funds affect innovation?<\/p>\n<p><strong>Ans.<\/strong> Budget inefficiencies limit infrastructure, slowing down scientific progress and reducing India\u2019s global competitiveness in deep tech.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/india\/govts-20k-cr-deep-tech-push-panel-flags-potential-of-fund-misuse-9906238\/\" target=\"_blank\" rel=\"nofollow noopener\">IE<\/a> | <a href=\"https:\/\/economictimes.indiatimes.com\/news\/science\/union-budget-2025-indias-rise-as-a-global-innovation-leader-with-deep-tech-in-focus\/articleshow\/117418232.cms?from=mdr\" target=\"_blank\" rel=\"nofollow noopener\">ET<\/a> | <a href=\"https:\/\/pib.gov.in\/PressReleaseIframePage.aspx?PRID=2098353\" target=\"_blank\" rel=\"nofollow noopener\">PIB<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The \u20b920,000 Cr deep tech fund aims to boost innovation, but experts warn of misuse, fund misallocation, and transparency issues.<\/p>\n","protected":false},"author":5,"featured_media":45529,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-45528","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/45528","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=45528"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/45528\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/45529"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=45528"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=45528"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=45528"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}