Deeptech-Spacetech to Propel Growth, Exciting 2025 for VCs and IPOs to Continue with High Momentum Focused initiatives such as the BIRAC BIG grants, Design-Linked Incentive (DLI) schemes, and iDEX programs have provided a much-needed boost to developments in sectors such as semiconductors, space, defense, and biotech.
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Convergence of favorable government policies, increasing investor confidence, and a surge in entrepreneurial talent have created a perfect storm that's propelling India to the forefront of global deep-tech innovation, predicted Vieshesh Rajaram, Managing Partner at Speciale Invest.
Focused initiatives such as the BIRAC BIG grants, Design-Linked Incentive (DLI) schemes, and iDEX programs have provided a much-needed boost to developments in sectors such as semiconductors, space, defense, and biotech, according to Rajaram, who added that the policies have laid a strong foundation for the startup ecosystem to indulge in innovation that solves for problems for both global and domestic markets.
"As we look ahead to 2025, it's clear that India is poised to lead transformative changes across industries like space, defense, semiconductors, energy, advanced manufacturing, and biotechnology. With its unique blend of technological prowess, entrepreneurial spirit, and government support, India is well-positioned to create a sustainable and inclusive future for its citizens and the world," said Rajaram.
Deep-tech investments constituted 11 per cent of all deals in India in 2024, up from 7 per cent in 2019. Funding for deep-tech saw 5x growth in the five-year period between 2020-2024 compared to the previous five-year period, according to data from Speciale Invest.
Spacetech on the Rise
Spacetech has been one of the rising sectors in the Indian startup ecosystem. According to the Indian Department of Space, the country's space economy is currently valued at USD 8.4 billion, constituting a 2 per cent share of the global market. The government department said in a press release that the sector is poised to achieve USD 44 billion in valuation by 2033, including USD 11 billion in exports, taking India's share in the global arena to approximately 7-8 per cent.
Startups have been at the forefront of India's growth lately and Suyash Singh, Co-founder and CEO at GalaxEye believes that the country's push for private sector collaboration and indigenous satellite constellations underscores a forward-thinking approach.
"While the recent dip in start-up funding poses challenges, it also provides an opportunity for leaner innovation and strategic partnerships. As the global space economy grows towards USD 1.8 trillion by 2035, the Indian space industry is not merely adapting to challenges, it is leveraging them to create scalable, resilient, and globally relevant solutions, said Singh.
From the VC Lens
From a venture capital (VC) point of view, the ecosystem remains as exciting as ever, with founders harnessing the 'Digital Public Infrastructure', building scalable solutions with mass impact, and addressing critical challenges across health, education, and financial inclusion, according to Nitin Sharma, Partner at Antler India.
Sharma said that heading into 2025 as a VC, the firm is more optimistic than ever, with technologies such as artificial intelligence (AI) continuing to be a predominant theme next year.
"As we look ahead, the next wave of AI innovation in India will move beyond enterprise copilots and code automation to deeply resonate with the Indian consumer, often in local languages, transforming health, education, financial services, and productivity. The future of AI will also blur the lines between software and services, as businesses shift to agentic AI platforms delivering outcomes, not just tools—reimagining workflows and creating unprecedented value," said Sharma.
IPO Momentum to Continue
India was a hub of activity when it came to companies hitting the bourses in 2024. The country emerged as the leader in initial public offering (IPO) volume, hosting twice as many IPOs as the US and 2.5 times more than Europe, according to Pantomath Capital, a mid-market investment bank.
According to data from a recent report by Pantomath, 34 companies have secured approvals from the Securities and Exchange Board of India (SEBI) to raise INR 41,462 crore in 2025 and 55 firms await clearance for a further INR 98,672 crore, with 143 DRHPs filed in 2024, compared to 84 in 2023 and 89 in 2022.
Mahavir Lunawat, Managing Director of Pantomath Capital, said, "With the continued momentum in the markets, we now project that equity raised through IPOs will cross INR 2 lakh crore in the year 2025. This milestone is a testament to the resilience of India's capital markets, the confidence of investors, and the critical role IPOs play in fueling economic growth."
