India is preparing a $25 billion pool of capital for deep-tech investments, in a bid to build critical technology at home and cut its dependence on foreign suppliers. The push covers artificial intelligence, semiconductors, advanced manufacturing, drones and space technology.

The government has committed $11 billion through the Research Development Infrastructure Fund, which venture capital and private equity managers are expected to match. Another $3 billion to $4 billion could take the total to around $25 billion, Rajat Tandon, president of the Indian Venture and Alternative Capital Association, told CNBC.

India invested about $11.6 billion in deep tech over the past decade. The gap with the United States remains wide: American deep-tech startups raised $136 billion in the same period. But domestic funding hit a record $3 billion in 2025, and nine out of ten Indian funds are now deploying money into deep tech.

“Tariffs from the US actually help this segment a lot,” said Anandamoy Roychowdhury of Crane Venture Partners, arguing that India must build local capability because “important technology can get cut off at any point.”