India's Deeptech Funding Surges Toward $5B Despite Access Hurdles

India's deeptech sector is experiencing significant momentum, with funding expected to surpass $5 billion annually within five years, up from an average of $1.5 billion in recent years. Despite over half of deeptech founders reporting difficulties accessing capital, a majority remain confident in securing future funding rounds, highlighting a market in transition. Key challenges include investor unfamiliarity with deeptech, long product development cycles, valuation mismatches, and limited mentorship and infrastructure, particularly for hardware-focused startups. Promising areas attracting investment and innovation include energy transition, robotics, semiconductors, quantum computing, and space technology. Government initiatives and a growing domestic market, alongside India’s expanding Electronics System Design and Manufacturing sector, are enhancing the ecosystem and drawing international attention. However, founders continue to face hurdles in scaling globally due to market readiness, pricing issues, and regulatory complexities, underscoring the need for stronger capital participation and ecosystem support to enable India to lead on global deeptech fronts.