AI and DeepTech Report for the Indian Landscape

• Nascent yet Thriving Ecosystem: Early-stage deals constitute about 93% of investments, indicating a rapidly growing sector poised for further expansion as funding momentum picks up.
• Valued at US$ 450 - 500 Billion: The AI and Deep Tech sectors demonstrate immense potential, expected to disrupt 86% of companies and revolutionize 83 million jobs globally by 2027.
• Tech Startups Boom: Over 26,000 tech startups in India are driven by affordable tech talent and robust collaboration with premier institutions like IITs and IISc, fueling innovation and commercialization.
• Logistics Revolution: Collaborative robots (co-bots) enhance sorting capacities by 40%, achieving a rate of 1,000 parcels per hour with 99% accuracy.
• E-commerce Environmental Impact: E-commerce is generating up to three times more CO2 emissions compared to traditional retail, with plastic packaging playing a major role.
• Generative AI & Automation: Advancements in Generative AI will automate 2,000 activities across 800 functions.
• Cybersecurity Challenges: Increasing cyber-attacks are putting approximately 300 billion passwords at risk annually.
• Investment Thesis for DeepTech: Several AI and Deep Tech ventures have the potential to cater to a large segment of the market. Globally, the cumulative valuations of Deep Tech startups stand at US$ 450 - 500B. Many groundbreaking Deep Tech solutions are being commercialized, and successful exits continue to increase. The global Deep Tech unicorn exits from 2018 to 2022 have increased by 550%.
• Regulatory Support & Government Schemes: The evolving regulatory landscape in India is fostering AI and Deep Tech innovation. Initiatives like the National Deep Tech Start-up Policy (NDTSP) and the Next Generation Incubation Scheme (NGIS) are pivotal in providing funding, resources, and infrastructure, enabling startups to thrive in a supportive environment.
• Deep Tech vs. Regular Startups: Deep Tech startups, characterized by extensive R&D phases, differ significantly from regular startups focused on quicker market entry. This prolonged R&D phase unlocks exponential potential, offering transformative solutions with significant industry and societal impact.
• Role of Academic Institutions: Academic institutions are crucial in nurturing AI and Deep Tech ventures, providing a fertile ground for innovation through resources, expertise, and collaboration opportunities that transform scientific research into practical, market-ready solutions.
• Rapid Growth in AI & Deep Tech: India’s AI and Deep Tech landscape is burgeoning, with significant innovations across biotech, AI/ML, robotics, advanced materials, blockchain, and quantum computing. The vibrant ecosystem mirrors the e-commerce boom of the mid-2010s, signaling a promising future for AI and Deep Tech in India.
• Industry Impact: AI and Deep Tech are transforming various industries, including agriculture, e-commerce, consumer goods, automotive, energy, finance, healthcare, logistics, manufacturing, and pharmaceuticals.

Comment

Commenting on the launch of the report, Mr. Aryaman Tandon, Managing Partner, Technology at Praxis Global Alliance, said, "Over the last decade, India's technological advancements have undergone a significant shift. The AI disruption has touched almost every sector, from Biotech and Mechanics to Aerospace and E-commerce. With this report, we aim to highlight various investment opportunities and government initiatives driving the Deep Tech and AI landscape."

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