A new era is beginning for India’s deep tech ecosystem. Eight major U.S. and Indian venture capital and private equity firms have come together to launch the India Deep Tech Investment Alliance, pledging over $1 billion in funding for India-domiciled deep tech startups over the next decade.
An unusual collaboration
While venture investors typically compete for deals, this alliance represents a rare instance of coordinated action. The group includes Accel, Blume Ventures, Celesta Capital, Gaja Capital, Ideaspring Capital, Premji Invest, Tenacity Ventures, and Venture Catalysts. Each member will commit capital over a 5- to 10-year horizon, while also offering mentorship and access to their networks.
Government programs and localization
The alliance aligns with the Indian government’s ₹1 trillion (about $11 billion) Research, Development and Innovation (RDI) scheme, announced in this year’s national budget. To qualify for its incentives, startups must be incorporated in India. This requirement has already prompted many companies — previously registered in the U.S. despite having Indian founders — to localize their legal structures.
Focus areas
Investments will primarily target strategic sectors such as artificial intelligence, semiconductors, space, quantum computing, robotics, biotechnology, energy, and climate tech. The focus is on early-stage startups — from seed through Series B — while avoiding late-stage ventures.
Arun Kumar, managing partner at Celesta Capital, has been named the alliance’s first chair. He emphasized that the effort not only unites private investors but also complements the strategic priorities of both the Indian and U.S. governments.
Geopolitical context
The alliance emerges against a complicated geopolitical backdrop. Earlier this year, U.S. President Donald Trump and Indian Prime Minister Narendra Modi launched the TRUST initiative to strengthen tech cooperation. But tensions soon flared, as Trump imposed a 50% tariff on Indian goods in response to New Delhi’s continued oil imports from Russia. Despite this rift, investors remain optimistic about India’s potential to become a global hub for deep tech innovation.
A step toward the future
For India’s startup ecosystem, the alliance could be transformative. On the one hand, it brings long-term patient capital and a unified voice to engage with policymakers. On the other hand, poor coordination could leave promising startups stranded.
Anand Daniel, partner at Accel, summed up the opportunity:
“Over the next decade, startups will build in India and export breakthrough solutions to the world. The tailwinds are in place: ambition, talent, policy intent, and patient capital.”
The India Deep Tech Investment Alliance represents a historic commitment to making India a leading hub for foundational technologies. With more than $1 billion in pledged capital and coordinated efforts from U.S. and Indian investors, the country could emerge as a global center of innovation in fields ranging from AI to space and energy over the coming decade.
