'Deep tech requires a new breed of entrepreneurs...': Rajeev Chandrasekhar on next innovation wave in startups

Rajeev Chandrasekhar, the Kerala chief of the Bharatiya Janata Party and former minister of state for information technology, highlighted the importance of deep tech in driving India’s next wave of innovation.

Speaking at the India Global Forum in Mumbai, Chandrasekhar stated that while earlier entrepreneurial success was largely driven by consumer-focused models, future advancements would be fuelled by deep-tech ideas. He said: “There are many innovations that Indian entrepreneurs have made that may not have been in the deep tech segment, but that does not make them less innovative. I do agree that there is a tendency among startups in India to go for something easy.” 

Chandrasekhar's comments followed Union Commerce and Industry Minister Piyush Goyal's recent remarks at the Startup Mahakumbh, which suggested a shift towards deep tech and AI, often comparing Indian startups with those from China. 

At the event, the minister raised eyebrows by comparing India’s startup scene with China’s, remarking that while China is forging ahead with “high-end tech”, India seems more focused on grocery delivery, food apps and gig work. Minister Goyal doubled down and said, “Are we just going to be delivery boys and girls? Or are we building the future?”

Chandrasekhar argued that the evolution towards deep tech requires a new breed of entrepreneurs distinct from those succeeding in traditional sectors like food delivery or B2C apps. “This will require a different type of entrepreneur. The same people who succeed in maybe, food-delivery apps or regular B2C apps, would not be able to do so well in AI (artificial intelligence), semiconductors, quantum computing, and other segments,” he added. Science and research, he said, would be the “bedrock” of this innovation wave.

Internationally, deep tech is becoming a competitive frontier. Chandrasekhar noted efforts by countries like China, with initiatives such as DeepSeek and Huawei’s semiconductor developments, to lead in this area. Meanwhile, the United States maintains its position with companies like OpenAI and Google. “China made it clear with DeepSeek and Huawei’s semiconductor stride that they were not bystanders in deep tech. The US, with OpenAI, Google and others, has long led the race. India too has its own ambitions and aspirations and we don’t want to be crowded out,” Chandrasekhar stated. 

The next few years, according to Chandrasekhar, are pivotal for global technology advancement. He warned that nations or ecosystems that do not engage in deep tech could risk being left behind. “As a country or as an ecosystem, if you are not a participant in this race, then chances are you will be left behind,” he emphasised. This underscores the urgency for India to carve out its position in the global tech landscape and not just remain a participant but a leader. 

Chandrasekhar also underscored the role of the government in fostering this deep tech ecosystem. He pointed out that the government needs to facilitate the emergence of pioneering figures in this sector by providing access to capital, markets, and opportunities. “The government will have to support the creation of the first set of heroes in this category in the form of access to capital, market, and opportunities. The government will also have to be a catalyst for their growth.” This call to action highlights the crucial partnership between public policy and private innovation in propelling India’s tech sector.

Last week, several Indian entrepreneurs came together in response to comments made by Commerce Minister Piyush Goyal questioning the value and innovation potential of the Indian startup ecosystem. Prominent figures such as Aadit Palicha, CEO of Zepto, and Sridhar Vembu, founder of Zoho, expressed their views on this topic, sparking a debate within the startup community.

Palicha, one of the co-founders of Zepto, highlighted the company's role in creating jobs and attracting foreign direct investment, describing it as a "miracle in Indian innovation".

Vembu, from Zoho, viewed the minister's remarks as a challenge for engineers and technologists rather than criticism. He emphasized the importance of having skilled engineers who can tackle the engineering problems associated with achieving big technological ambitions. 

"What we need are smart engineers who roll up our sleeves and get it done. Keep in mind the vitamins and cancer cure argument - sequencing how we pay for our big tech ambition is very much part of the engineering problem that smart engineers must solve! We can do this," Vembu said in a social media post.