India deeptech sector attracts $11.4 billion in funding since 2015

India's deeptech sector has secured approximately $11.4 billion in private equity and venture capital investments between 2015 and 2026 year-to-date. According to a report by the Indian Venture and Alternate Capital Association (IVCA), 2025 has emerged as a record year for investment despite a general slowdown in startup funding. Key drivers include artificial intelligence, generative AI, electric vehicles, and battery technologies, while semiconductors and spacetech are identified as the fastest-growing segments. Bengaluru remains the primary investment hub, though cities like Ahmedabad, Kochi, and Kolkata are gaining traction.

Parallel to this growth, the nation's ₹1 lakh crore RDI fund, intended to provide patient capital for deeptech startups, has faced scrutiny regarding its initial allocations. Allegations have surfaced concerning potential conflicts of interest, with reports suggesting that 15 of the 22 companies selected in the first round shared investment ties with members of the selection panel. While the government stated that conflicted members disclosed their interests and did not participate in evaluations, critics are calling for independent reviews and greater transparency to ensure public funds are distributed fairly and reach emerging managers.