India presents tremendous opportunity in areas of deep technology and technology driven transformation

India, which is currently experiencing a shift from low-cost software services to manufacturing, presents significant opportunities in the fields of deep technology and technology-driven transformation, according to experts. Arun Kumar, former Assistant Secretary of Commerce for Global Markets and Director General of the US and Foreign Commercial Service (USFCS) in the Obama Administration, expressed his confidence in India’s potential, highlighting the availability of international-standard talent and the ubiquity of digital technology, which provide a foundation for innovation. He also emphasized the advancement of manufacturing and the strengthened India-US relationship under the leadership of Modi and Biden. Kumar’s remarks were made during the TechSurge conference organized by Celesta Capital at the Computer History Museum in Silicon Valley. The conference was recorded and made available for viewing by Celeste Capital. Kumar also noted that India is emerging as a key economic and strategic partner for the US.

The US-India Initiative on Critical and Emerging Technology (iCET), which recently emerged from meetings between the National Security Advisors of both countries, aims to build a robust innovation ecosystem through collaborative efforts in areas such as artificial intelligence, high-performance computing, defense and space technologies, semiconductors, and next-generation telecommunications.

World Bank Chief Economist Indermit Gill discussed India’s progress in ease of doing business since 2014, noting that the country has overcome previous challenges to become a favorable investment destination. Gill expressed optimism that India’s current conditions present an opportune time for attracting investment.

Arogyaswami Paulraj, an emeritus professor at Stanford University, identified semiconductors and energy, specifically decarbonization, green hydrogen, and electric vehicles, as the driving priorities for deep tech in India. He highlighted the significance of building local capability in deep technology, as India currently relies heavily on imports. Paulraj stated that India, with favorable conditions, offers enormous opportunities for deep tech investments.

The deep tech sector is a globalized industry with extensive supply chains. India could reasonably aim to capture five percent of the global market share in deep tech over the next decade, translating to significant value-added revenue and market cap opportunities. The Indian Semiconductor Mission, focused on building capabilities in this foundational technology, represents India’s initial push in deep tech.

Paulraj expressed great optimism in India’s current state, highlighting the stability provided by the country’s economic model and the political consensus on its direction. He also emphasized the successful transformation of India’s digital landscape.

Sriram Viswanathan, the founding managing partner of Celesta, noted that India is undergoing a shift from low-cost software services to manufacturing and the development of deep tech industries such as semiconductors. He highlighted the emergence of sophisticated companies in India specializing in semiconductor design, as well as manufacturing automation and robotics.

Anand Unnikrishnan, the managing director of the National Infrastructure Investment Fund (NIIF), expressed his belief in the immense opportunities that lie ahead for India. He emphasized that India’s growth is not linear but rather exponential, showcasing the dynamic nature of the country’s development.

Unnikrishnan also highlighted the success of NIIF as a public-private partnership. He pointed out the robust entrepreneurial ecosystem and the favorable environment for venture capital investments in India today.