US-India corridor's deeptech revolution through global innovation

Let's talk semiconductors first. These tiny chips power everything in our digital world, and the US-India corridor is absolutely buzzing with activity here. The US-India partnership under the CHIPS Act's ITSI Fund is driving some fascinating developments. Take the upcoming national security semiconductor fabrication plant in India. This isn't just about building another factory. We're talking about securing supply chains and achieving technological independence that could reshape global tech dynamics.

A little known company Netrasemi is developing high-performance EdgeAI and System on Chips (SoCs) while attracting serious interest from top-tier international investors. But here's what gets me excited: companies like Numelo Technologies are creating energy-efficient chips using grants from AMD's collaboration with IIT Bombay. When you see Indian innovation thriving with American support like this, you know something big is happening.

Indian Startups Lead in Space Innovation

Space tech is where things get truly spectacular. We have the NASA-ISRO Synthetic Aperture Radar (NISAR) mission and Indian astronauts training at NASA's Johnson Space Center. But the real action is happening with our startups. Seven Indian companies, including KaleidEO, EtherealX, and Aadyah Space, were recently handpicked for an Indo-US defense program. They're now working directly with US agencies. Another Indian startup OrbitAID Aerospace, is tackling space debris while extending satellite lifespans. Their incubation through the US-based Starburst Aerospace accelerator shows how Indian startups are scaling globally at breakneck speed.

If there was a survey to be done today among Indian early stage VCs with a focus on deeptech, it won’t be a surprise to find deeptech investment thesis flowing through their veins. Indian VCs both at early and growth stage have finally woken up to the engineers-led deeptech revolution and the innovations they stand to launch in India and globally. Personally speaking, we've always gravitated toward builders who embrace complexity instead of running from it. We focus on startups with rock-solid intellectual property in semiconductors, space technology, defense technology and beyond.

The conversation of deeptech cannot be considered complete without the application of AI. In the world of GenAI, agentic AI and AI powered models, the impact of it can be seen across sectors. Health-tech, for example, is a proven use case for AI. Sascan Meditech, a gem in the making, is using AI to revolutionize cancer screening. Or Genrobotics, which is eliminating manual scavenging through robotic solutions. These companies perfectly capture what the US-India corridor is all about: solving real problems while creating global impact.

Rising Impact on Global Solutions

The corridor's reach extends far beyond semiconductors and space. Artificial intelligence is absolutely thriving through initiatives like the US-India Artificial Intelligence (USIAI) Initiative, creating solutions for healthcare, agriculture, and smart cities. Quantum computing, while still in its early stages, is gaining serious momentum through a joint US-India coordination mechanism. India's National Quantum Mission is setting the stage for future breakthroughs. Startups like QpiAI, with their 25-qubit quantum system scalable to 300 qubits, are showcasing India's quantum ambitions in a spectacular fashion.

The advantages here are staggering. Startups get access to global markets, diverse funding sources, and cutting-edge technology. Investors can tap into high-growth sectors backed by two economic superpowers. Programs like NASSCOM's InnoTrek are connecting Indian startups with US investors, fostering knowledge sharing and smoothing the path to capital.

But let's be honest about the challenges. Regulatory hurdles exist, including export controls under the Missile Technology Control Regime. Intellectual property protection requires careful navigation. Cultural and operational differences can slow integration efforts. Global competition, particularly from China, keeps everyone on their toes. However, with continued government support like India's $10 billion investment under the India Semiconductor Mission (ISM) and the US-India TRUST Initiative, these obstacles are absolutely surmountable.

The US-India corridor stands as a beacon of innovation where talent, technology, and capital unite to shape tomorrow. As proud Indians, we're completely committed to supporting the dreamers and builders creating the next chapter of human progress. To investors, founders, and policymakers, I say this: join us. Let's champion policies that nurture this ecosystem and invest in the pioneers unlocking an era of limitless possibilities. The corridor's promise couldn't be clearer: exceptional returns, global impact, and an innovation legacy that will inspire generations to come.

(Bhaskar Majumdar, Founder and Managing Partner, Unicorn India Ventures.)

Views are personal, and do not represent the stance of this publication.