When we talk of India’s growth story today, it’s not possible to ignore the excitement in emerging tech, artificial intelligence, semiconductors, space technology, clean energy, and defence technology are no longer specialist domains. They’re center stage in the boardrooms and policy plans.
But despite all the optimistic rhetoric, I believe two things are needed if we are to see this ecosystem become a source of global competitiveness: strategic patience and serious big business commitment.
The Pace vs. Patience Paradox
In a quarterly performance and immediate market response world, “patience” is a term that sounds like a luxury. But establishing deep tech capability does not amount to a sprint; it’s a 10–15 year marathon that tests our capacity to continue pumping money and believing.
Take semiconductors, India has offered over $10 billion in incentives to produce chips. But Taiwan’s TSMC took over three decades to reach its dominance in the current times. So did SpaceX, now valued at over $180 billion, when it was years shy of profitability as a startup.
We need to avoid the temptation to gauge success in these industries too soon by way of short-term returns. If the vision is transformational, the timelines need to be realistic.
Current Position: The Numbers Tell a Clear Story
Startup ecosystem: India has over 112,000 registered startups and 112 unicorns and is therefore the world’s third-largest startup ecosystem.
Deep tech share: Only 5% of Indian startups are engaged in deep tech (space, robotics, AI, advanced materials) compared to over 15% of US and Israeli startups.
Trends in funding: Indian VC funding declined $7 billion in H1 2024 (42% YoY), and deep tech is taking a slice of the overall pool.
R&D expenditure: India allocates an approximate 0.65% of GDP for R&D, well below China (2.4%), the U.S. (3.5%), and South Korea (4.9%).
These figures reflect the gap between our investment and our ambition.
Why Big Business Involvement is Critical
While startups provide flexibility and imagination, taking the breakthrough innovations to scale calls for the deep pockets, international networks, and executional endurance of multinationals.
The American defence and aerospace industries grew on the back of government orders from Lockheed Martin, Boeing, and Raytheon, all big private companies with government connections. Similarly, South Korea’s electronics industry dominance was created by the combined forces of Samsung, LG, and Hyundai, as well as public policy.
For India, the decision is clear:
- Conglomerates can base moonshot projects, from indigenous battery chemistries to hyperscale AI models.
- Corporate venture arms can finance the “valley of death” phase, the risky gap between prototype and profitability where most startups perish.
- International partnerships can accelerate market access, human capital, and IP.
Patience as a Deliberate Strategy
Patience is not laziness. Patience is building the foundation for compounding returns. The secret is getting capital working in concert with strategic national interests, defense, critical minerals, EV supply chains, and clean energy transitions.
For example:
- EV Batteries: India imports over 80% of its lithium-ion cells. Local gigafactories are not the economic option; it’s about energy security.
- Defence Tech: As India’s defence budget has surpassed ₹6.21 lakh crore ($75 billion) in 2024–25, the potential for private-driven local innovation has never been more lucrative.
- AI Infrastructure: India’s AI sector is expected to be valued at $17 billion in 2027. In the absence of domestic data centre capacity, we will keep depending on foreign infrastructure.
Clear Call to Action for Big Business
We must recognize that in emerging technology, the private sector is not only an enabling force but also a co-architect of national capability.
These are what I believe India’s big businesses must promise:
- Establish 10-year planning horizons for strategic technology investments even if there are incremental payoffs early on.
- Partner with the government in mission-mode programs in semiconductors, defence, and green hydrogen.
- Mentor and integrate startups into supply chains instead of simply keeping them in mind as potential acquisition targets.
- Invest in R&D at world benchmark levels a minimum of 2–3% of revenues in high-technology industries.
The Window of Opportunity is Open – But Not Forever
The global value chains are being reconfigured. Talent pools are becoming on-the-move. Strategic partnerships are in transition. If India moves with purpose over the next five years, we can catalyze industries that will shape the next 50.
But this will not occur on hope alone. It will occur where ambition meets patient capital, where boardrooms plan in decades, and where large business realizes that nation-building is not a government monopoly.
As someone who has witnessed India’s technology and industrial revolution over the years, I can attest to this with certainty, the next generation of Indian leadership in technology will be built in decades, not years. And the decade begins here, in the choices that we make today.
