Insider Brief
- India’s AI and deep tech investment surged in 2025, with $2.1 billion deployed across 289 deals and AI funding rising 58% year over year to $1.22 billion, according to the India Deep Tech Alliance’s 2026 landscape report.
- AI accounted for 188 deals in 2025 while non-AI deep tech sectors recorded 147 deals worth $1.19 billion, lifting deep tech’s share of total VC–PE activity to roughly 15%, up from 4% in 2016, with AI’s share climbing to 12.3% from about 4.5% in 2020.
- The alliance announced a dedicated $1 billion allocation for Indian AI startups within more than $2.5 billion in member commitments, has deployed $110 million into 50+ companies since September 2025, and recently added Nvidia and Qualcomm Ventures to expand technical support and capital access.
Investment in India’s AI and deep tech ramped up in 2025, with more than $1 billion in deals, according to the India Deep Tech Alliance.
The industry group released its AI and Deep Tech Investments Landscape: 2026 Edition report, showing AI funding in India rose 58% year over year in 2025 and deep tech now accounts for roughly 15% of total VC–PE activity, up from 4% in 2016. The alliance also announced a dedicated $1 billion allocation for Indian AI startups to be deployed over the next three years, carved out of more than $2.5 billion in broader deep tech commitments by its members.
What are the Key Findings?
According to India Deep Tech Alliance:
- AI recorded 188 deals totaling $1.22 billion in 2025, a 58% increase in funding value.
- Non-AI deep tech sectors logged 147 deals worth $1.19 billion.
- Deep tech overall attracted $2.1 billion across 289 deals in 2025.
- Over the past decade, deep tech investments totaled $27.9 billion across 2,178 deals involving 1,217 companies.
- AI’s share of venture funding rose from about 4.5% in 2020 to 12.3% in 2025.
The report points to government policy as a key catalyst, including India’s ₹1 lakh crore Research Development and Innovation fund, while warning that growth-stage capital, commercialization pathways and ecosystem coordination remain bottlenecks.
“India’s AI and deep tech breakout is now measurable: the IDTA’s inaugural report shows AI funding jumped 58% in 2025 and deep tech is rapidly becoming a core allocation in India’s venture market. But this moment demands more than optimism; it requires decisive execution,” India Managing Partner, Celesta Capital and Chair of IDTA Arun Kumar said in a statement.
Since launching in September 2025, the India Deep Tech Alliance has mobilized more than $2.5 billion in commitments over five years and deployed $110 million into more than 50 companies in the past six months.
The alliance also announced it’s latest members Applied Materials, CG Power, Lam Research, Larsen & Toubro, and Micron Technology. In November, a second round of companies, including Nvidia and Qualcomm Ventures, joined the coalition. Nvidia will serve as a strategic technical adviser through its AI and accelerated computing platforms and training programs, while Qualcomm Ventures is contributing additional capital and global partner access, expanding alliance commitments by roughly $850 million.
“Deep tech is now a defining engine of India’s next wave of value creation, across semiconductors, AI, robotics, space, and advanced manufacturing,” noted Sudhir Sethi, Founder and Chairman, Chiratae Ventures. “This report makes the opportunity clear, and it also makes the bottlenecks clear: growth capital, adoption pathways, and ecosystem coordination.”
