3 min read
India’s latest overhaul of its startup rules offers a clear lesson for neighboring ecosystems still finding their footing in deep technology and long-horizon innovation, including Pakistan.
By formally recognizing deep tech as a category that plays by different rules, Indian policymakers have acknowledged a reality founders across the region already know well: science-led companies do not scale on the same timelines as consumer apps or services. Extending startup recognition to as long as 20 years and raising revenue thresholds sends a powerful signal that patient capital, long-term R&D, and policy continuity matter if a country wants to compete in AI, semiconductors, biotech, space, and advanced manufacturing.
The change is part of New Delhi’s ambitious plan to create a thriving deep tech ecosystem. This involves a mix of regulatory reforms and public investment, highlighted by the ₹1 trillion (about $11 billion) Research, Development and Innovation Fund (RDI) that was announced last year. The goal of this fund is to boost patient financing for companies focused on science and R&D. In this context, U.S. and Indian venture firms have teamed up to establish the India Deep Tech Alliance, a coalition of private investors worth over $1 billion. This group includes notable names like Accel, Blume Ventures, Celesta Capital, Premji Invest, Ideaspring Capital, Qualcomm Ventures, and Kalaari Capital, with chipmaker NVIDIA stepping in as an adviser.
When it comes to scale, India is still more of an emerging player in the deep tech scene rather than a dominant force. So far, Indian deep tech startups have pulled in a total of $8.54 billion, but recent trends suggest that things are picking up speed again. In 2025 alone, these startups raised $1.65 billion, marking a significant bounce back from the $1.1 billion they secured in each of the two prior years, especially after hitting a high of $2 billion in 2022.
Despite a private sector niche for big and deep tech, the RDI Fund is meant to serve as a central hub for fostering greater capital growth. Unlike your typical fund-of-funds, it’s also set up to make direct investments and offer credit and grants to innovative deep tech startups.
For Pakistan, where startups working in AI, health tech, agritech, climate tech, and hardware often struggle to survive beyond early pilots, India’s approach highlights what structured state backing can unlock.
Many Pakistani founders face a familiar pattern, i.e., early enthusiasm, limited grants, then a sudden drop-off in institutional support long before their technology is ready for market. India’s reforms attempt to close that gap by aligning policy timelines with the actual lifecycle of deep tech innovation.
By giving research-heavy startups more time, higher turnover limits, and clearer definitions, India is making it easier for investors to back risky but transformative ideas. Pakistan’s ecosystem, still dominated by short-term plays and quick monetization pressure, could benefit from a similar rethink, especially as global capital increasingly looks for differentiated, IP-driven ventures rather than copycat platforms.
India is pairing regulatory reform with public R&D funding, signaling to global partners that it wants to build technology, not just consume it. For Pakistan, which has strong engineering talent but limited commercialization pathways, adopting comparable long-term frameworks could help retain founders, attract diaspora investment, and reduce reliance on imported technology.
India’s big tech reset serves as a practical blueprint: if you want globally competitive innovation, you must design rules that reward patience, research, and risk.
