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Building Deep Tech in India: Challenges and Opportunities

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# Building Deep Tech in India: Challenges and Opportunities

India has produced remarkable software companies. But deep tech hardware, drones, AI infrastructure, advanced materials remains challenging. After building Drona Aviation and scaling DeepTek, I've learned what it takes to build deep tech in India.

The Deep Tech Difference

Software startups can iterate quickly. Launch, learn, pivot, repeat. Deep tech doesn't work that way.

When you're building drones:

Hardware iterations take months, not days
Manufacturing requires capital upfront
Regulatory approvals add timeline uncertainty
Customer validation requires working prototypes The feedback loops are longer, and mistakes are more expensive.

The Funding Challenge

Indian VC ecosystem has evolved tremendously for software. Deep tech funding remains harder:

Why it's challenging:

Longer time to revenue
Higher capital requirements
Fewer investors with technical depth
Uncertain exit timelines **What's changing:**
Government initiatives like Startup India
Deep tech-focused funds emerging
Global investors looking at India
Strategic corporate investment increasing

The Talent Advantage

Here's what India gets right: engineering talent.

IITs and other engineering colleges produce graduates who can tackle complex technical problems. The challenge is keeping them in deep tech when software offers higher immediate compensation.

What works:

Mission-driven culture that attracts builders
Equity participation that aligns long-term interests
Research problems that challenge and engage
Path to technical leadership

Regulatory Navigation

Deep tech often operates in regulated spaces. Drones, medical devices, autonomous systems all require regulatory approval.

What I've learned:

Engage regulators early, not as an afterthought
Participate in policy discussions
Build compliance into the product, not around it
Patience is mandatory India's regulatory environment is evolving. Early movers who help shape sensible regulations build lasting advantages.

The Market Opportunity

Despite challenges, the opportunity is immense:

Healthcare AI:

India has massive healthcare delivery gaps. AI can help scale expertise across geography.

Industrial Automation:

Manufacturing is growing. Automation, including drones, will be essential for competitiveness.

Defense Tech:

Government is actively promoting indigenous development. Drona Aviation has benefited from this push.

Lessons for Deep Tech Founders

1. Extend your runway: Deep tech takes longer. Plan for it.

2. Find technical co-founders: You can't build deep tech with consultants.

3. Start with a market, not technology: Technology looking for a problem rarely succeeds.

4. Build manufacturing relationships early: Production capability is as important as R&D.

5. Be patient but not complacent: Long timelines don't mean slow execution.

The Future is Deep

India's next wave of technology leadership will come from deep tech. Software was the warmup. Hardware, AI infrastructure, advanced manufacturing these will define the next decade.

For founders willing to take on harder problems with longer timelines, the opportunity is unprecedented. The best time to build deep tech in India is now.

Background

Apurva skipped presentations and built real AI products.

Apurva Godbole was part of the January 2025 cohort at Curious PM, alongside 15 other talented participants.