Context: 

• In her Interim Budget speech, Finance Minister Nirmala Sitharaman promised to launch a new scheme to strengthen deep-tech capabilities in the defence sector. 

Explanation and Opportunities in India:

• Deep tech refers to advanced and disruptive technologies, many of which are still under development, that have the potential to trigger transformative change, and provide solutions for the future.
• The term is used to describe cutting-edge research in nanotechnology, biotechnology, material sciences, quantum technologies, semiconductors, artificial intelligence, data sciences, robotics, 3D printing, etc. 
• These technologies are expected to play a key role to address complex global challenges like climate change, hunger, epidemics, energy access, mobility, physical and digital infrastructure, and cyber security.
• Advanced capabilities in deep tech are also likely to enhance productivity and drive economic growth and create jobs in coming years, and offer competitive advantage to countries with strong foundations in these areas.
• With its large base of relatively high-quality science and engineering manpower and a fairly well-established technology culture, India feels it is well placed to be one of the frontrunners in these areas. 
• There is scope to contribute to the development of these technologies, which can ensure early adoption, shares in intellectual property, indigenous know-how, and self-reliance. 
• Major associated benefits in terms of spin-off technologies, trained manpower, entrepreneurship and technology exports can accrue as well.

Government Efforts to build an ecosystem: 

• Over the past few years, the government has tried to incentivise research in some of these areas by setting up a National Mission on Transformative Mobility and Battery Storage and, more recently, a National Quantum Mission.
• In 2023, a policy framework to create an enabling environment for companies working in these technology areas was finalised. 
• The National Deep Tech Startup Policy (NDTSP), piloted by the Department for Promotion of Industry and Internal Trade and the Office of the Principal Scientific Adviser, is currently awaiting government approval.
• The policy seeks to address specific challenges faced by technology startups, and to provide them with a platform to compete and collaborate with the best in the world. 
• The idea is to create a deep tech startup ecosystem by offering the right incentives to companies that invest time and money in innovation and research. 
• More than 10,000 startups working in these technology domains were identified as part of the effort.
• The NDTSP talks about some of the things that need to be done in this regard: create opportunities for long-term funding; a simplified but stronger intellectual property rights regime; tax incentives; a conducive regulatory framework; development of standards and certifications; nurturing of talent; and linkages between industry, research centres, and educational institutions.
• One of the key policy recommendations in the NDTSP is to open up opportunities for long-term funding of research projects. It acknowledges that most deep tech projects are time- and money-intensive, with relatively high funding requirements.

Efforts are being made to create better synergies between industry, research labs, and educational institutions in order to broad-base both research activity and the funds to support it.