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Modi government to establish ₹10,000cr fund for deep tech innovation
05 Jul 2025

The Indian government has announced a massive ₹10,000 crore funding to boost the country's deep tech ecosystem.

Union Commerce and Industry Minister Piyush Goyal made the announcement at an event hosted by IIT Madras and its Alumni Association.

The move is part of a larger strategy to make India an innovation and technology powerhouse on the global stage.

Guidelines for the fund are being finalized
Funding details

Goyal said the fund will mostly be used to support the deep tech ecosystem.

He added that the guidelines for this fund are being finalized with an aim to channel capital in a way that supports not just start-ups but the entire technology pipeline, from research to commercialization.

The minister also spoke about a $12 billion allocation to the Department of Science and Technology as a 50-year, zero-interest loan.

Loan seen as quasi-grant
Loan perspective

Even though it's a loan, Goyal said the government sees it as a quasi-grant that gives flexibility in capital deployment.

He explained, "It is truly a grant, but the idea behind this was that it gives us more flexibility to provide equity support, grant support, low-cost support."

The minister emphasized India's cost advantage in developing cutting-edge technologies and said product development here costs just one-sixth or one-seventh of what it would in the US or Europe.

India on track to become 4th-largest economy
Economic goals

Goyal said India is on track to become the world's fourth-largest economy by 2025 and the third-largest by 2027.

He said, "When we all contribute in that journey...that is when we can see the Indian economy grow from a $4 trillion economy today to a $32 trillion economy by 2047."

The minister highlighted India's strengths in artificial intelligence (AI), machine learning, quantum computing, and data analytics as part of current policies aimed at building "future-ready" nation powered by technological innovation.