Deep-Tech
Reference-
In the interim budget presented on February 1 , 2024 , Finance Minister Nirmala Sitharaman announced a Rs 1 lakh crore fund to provide low-cost or zero-interest loans for 50 years for research and development.
Main point-
- The Finance Minister announced the launch of a new scheme to strengthen deep-tech capabilities in the defense sector.
- Another announcement is about implementing a policy to encourage deep-tech startups in all sectors, not just defence , by the end of the year, 2024.
Deep Tech –
- Deep tech is advanced technology based on significant scientific or engineering innovation.
- It is also called advanced technology.
- This includes areas such as artificial intelligence , quantum computing , blockchain , robotics and biotechnology.
- Deep tech involves exclusive innovation.
- Blockchain , Virtual Reality , Augmented Reality , Computer Imaging etc. can be included in Deep Tech.
National Deep Tech Startup Policy (NDTSP)-
- The NDTSP Consortium put forward the NDTSP for public consultation in August 2023 .
- The following suggestions have been given in this policy-
- Nurturing research , development and innovation
- Strengthening the Intellectual Property System
- Facilitating access to finance
- Supporting infrastructure and resource sharing
- Making rules , standards and certifications
- Attracting human resources and undertaking capacity building
- Procurement and promoting
- Ensuring interlinkage of policy and programs
- The 'National Deep Tech Startup Policy' (NDTSP) has not yet received government approval.
- This policy provides a platform to solve the challenges of deep tech startups, enable them to compete and collaborate with deep tech companies of the world.
- It aims to build a deep tech startup ecosystem by incentivizing companies that invest in innovation and research.
- The National Consortium has been set up on the recommendations of the Prime Minister's Science , Technology and Innovation Advisory Council ( PM-STIAC) .
- It is a high-level organization to create a policy framework for India's deep tech startups ecosystem.
- Under the leadership of the Principal Scientific Advisor to the Government of India, this consortium has been formed by comprising of eminent representatives from government departments , industry associations , research institutes and innovation centres.
Deep Tech Startup-
- NDTSP aims to create a conducive ecosystem for Deep Tech.
- The aim is to solve the challenges faced by deep tech startups by formulating policies.
- Most of the deep tech startups work on machine learning and artificial intelligence.
- Deep tech startups are working in the following areas,
- Artificial Intelligence
- life science
- Agriculture
- aerospace
- chemistry
- Industry
- clean energy
- care of terminally ill patients
- AI drones and AI robots are examples of deep tech.
Building an ecosystem for deep tech-
- The Government of India has taken the following steps to encourage research in the Deep Tech sector-
- National Mission on Transforming Mobility
- National Mission on Battery Storage
- National Quantum Mission
- For this, more than 10,000 startups working in this field were identified.
- NDTSP considers certain actions in this area essential; As-
- Creating long-term funding opportunities
- A simplified but robust intellectual property rights regime
- tax incentives
- a favorable regulatory framework
- Creation of standards and certifications
- Relationship between industry , research centers and academic institutions
Funding requirement-
- NDTSP has recommended providing long-term finance for research and development (R&D) projects.
- Most Deep Tech projects are time-intensive with relatively high finance requirements.
- India's expenditure on R&D is lower than the global average.
- India's expenditure on R&D is very low compared to the scientifically advanced countries with which it has to compete.
- For two decades the Indian government has aimed to allocate at least 2% of GDP to R&D.
- While absolute expenditure has increased , expenditure on R&D as a share of GDP has declined in the last few years.
- India currently spends about 0.65% of its GDP on R&D, while the global average is about 1.8% .
- Recent decisions of the government make it clear that R&D expenditure cannot increase substantially without partnership with the private sector.
- The recently established ' National Research Foundation' (NRF) aims to attract about 70% of its allocation of Rs 50,000 from private industry over the next five years .
- Hopes of investing private sector money in research have already failed.
- Not much can be expected from the private sector without a proportionate increase in funding by the government.
- It is at this point that the Rs 1 lakh crore fund to finance R&D becomes important.
- This will encourage the private sector to promote R&D in this sector.
Importance of Deep Tech
- It has the potential to trigger significant change and provide solutions.
- It is used for cutting-edge research in nanotechnology , biotechnology , materials science , quantum technologies , semiconductors , artificial intelligence , data science , robotics , 3D printing, etc.
- This has the potential to solve the world's complex problems; As-
- Climate change
- Hunger
- Pandemic
- Energy access
- Mobility
- Physical and digital infrastructure
- Cyber security
- Deep Tech can provide the following benefits,
- To increase productivity
- In promoting economic development
- In creating jobs
- Countries with a strong foundation in deep tech are also likely to gain a competitive advantage.
- are likely to contribute to the development of those technologies; Which can ensure participation in intellectual property , indigenous knowledge and self-reliance.
- Benefits may also accrue in spin-off technologies , trained manpower , entrepreneurship and technology export.
- India can play a leading role in this field due to high quality manpower in science and engineering and good technology culture.
