India's Startup Ecosystem Shifts to Deep Tech as Government Backing Fuels AI and Chip Ambitions

At the ET Startup Awards 2026, Satyan Gajwani, a prominent figure in India's startup ecosystem, said that government backing and patient capital are propelling the country's leap into artificial intelligence and semiconductor manufacturing. Gajwani made the remarks during the awards ceremony, highlighting a strategic shift in the ecosystem's focus.

Gajwani noted that the ecosystem, once driven by fintech, food delivery, SaaS, commerce, quick commerce, and direct-to-consumer brands, is now witnessing founders focused on deep, proprietary technology. Indian startups are building semiconductor chips, AI, robotics, clean energy technologies, and new materials, while investors are shaping funds willing to wait longer for these companies to mature. This transition is supported by government initiatives aimed at boosting domestic manufacturing and innovation.

The implications are significant for India's global competitiveness, as the country seeks to reduce reliance on imports and become a hub for high-tech industries. Global reactions are yet to emerge, but the shift signals a maturing startup landscape. Next steps include continued policy support and investment in research and development to sustain momentum.