Daily Current Affairs : 8-January-2024

The Principal Scientific Advisor has recently announced the imminent presentation of the National Deep Tech Startup Policy (NDTSP) to the Union Cabinet, marking a significant stride in India’s technological landscape.

Characteristics of Deep Tech:
  1. Radical Innovation: Deep tech either creates new markets or disrupts existing ones.
  2. Transformative Impact: Innovations significantly impact lives, economies, and societies.
  3. Extended Development: Unlike shallow tech, deep tech requires prolonged development cycles, substantial funding, and time.
Background of Draft NDTSP Release:

In response to the evolving landscape of deep tech, the Prime Minister’s Science, Technology, and Innovation Advisory Council recommended the establishment of a National Consortium and a Working Group. The purpose was to devise a comprehensive policy framework enhancing the Indian deep tech startup ecosystem.

  1. National Consortium Formation:
    • Chaired by the Principal Scientific Adviser.
    • Includes stakeholders from DPIIT, ISRO, DRDO, NITI Aayog, MeitY, etc.
  2. Drafting Process:
    • Developed under the guidance of the National Consortium.
    • Underwent extensive multi-stakeholder consultations.
Key Highlights in the Draft NDTSP:
  1. Complements Startup India Policies:
    • Enhances existing policies, programs, and initiatives.
    • Focuses on fostering a conducive ecosystem for deep tech startups.
  2. Policy Instruments and Changes:
    • Captures new policy instruments under themes like R&D, IP, Funding, Infrastructure, Regulations, HR, Procurement, and Interlinkages.
State of India’s Deep Tech Startups:
  1. Scale and Impact:
    • Over 3,000 deep-tech startups in 2021.
    • Raised USD 2.7 billion in VC funding, constituting 12% of the nation’s startup ecosystem.
  2. Growth and Concentration:
    • 53% growth in the last decade.
    • Concentrated in Bengaluru (25-30%), Mumbai (10–12%), Delhi-NCR (15–20%).
  3. Diverse Industry Presence:
    • From sustainable energy to drone delivery, deep-tech startups influence diverse industries.
Problems with Deep Technology:
  1. Funding Challenges:
    • Only 20% of deep tech startups secure funding.
    • Underutilization of domestic and government funding.
  2. Hurdles:
    • Challenges include limited access to markets and people, research guidance, investor comprehension, customer acquisition, and talent costs.
Important Points:

Background of Draft NDTSP Release:

  • Recommended by PM-STIAC to strengthen the Indian deep tech startup ecosystem.
  • National Consortium chaired by the Principal Scientific Adviser.
  • Draft NDTSP developed through extensive multi-stakeholder consultations.

Key Highlights in the Draft NDTSP:

  • Complements and enhances existing Startup India policies.
  • Focuses on fostering a conducive ecosystem for deep tech startups.
  • Captures new policy instruments under themes like R&D, IP, Funding, Infrastructure, Regulations, HR, Procurement, and Interlinkages.

State of India’s Deep Tech Startups:

  • Over 3,000 deep tech startups in 2021, raising USD 2.7 billion in VC funding.
  • Constitute more than 12% of the nation’s startup ecosystem.
  • 53% growth in the last decade, concentrated in Bengaluru, Mumbai, and Delhi-NCR.
  • Diverse industry presence, influencing sectors from sustainable energy to drone delivery.

Problems with Deep Technology:

  • Only 20% of deep tech startups secure funding.
  • Underutilization of domestic and government funding.
  • Hurdles include limited access to markets and people, research guidance, investor comprehension, customer acquisition, and talent costs.
Why In News

The Principal Scientific Advisor has announced that the government is set to present the National Deep Tech Startup Policy (NDTSP) to the Union Cabinet for approval in the upcoming weeks, underscoring the nation’s commitment to fostering innovation and bolstering the deep tech ecosystem.

MCQs about National Deep Tech Startup Policy

  1. What is the primary focus of the National Deep Tech Startup Policy (NDTSP)?
    A. Promoting traditional industries
    B. Enhancing deep tech startups’ ecosystem
    C. Encouraging agricultural innovations
    D. Supporting mobile app development
    Correct Answer: B. Enhancing deep tech startups’ ecosystem
    Explanation: The NDTSP aims to strengthen the Indian deep tech startup ecosystem by complementing existing policies and fostering a conducive environment for such startups.
  2. Which organization recommended the creation of the National Consortium and Working Group for the NDTSP?
    A. Ministry of Finance
    B. PM-STIAC
    C. NASSCOM
    D. DPIIT
    Correct Answer: B. PM-STIAC
    Explanation: The Prime Minister’s Science, Technology, and Innovation Advisory Council (PM-STIAC) recommended the establishment of a National Consortium and a Working Group.
  3. What is a characteristic of deep tech innovations ?
    A. Swift development cycles
    B. Limited impact on societies
    C. Disregard for existing markets
    D. Transformative impact on lives and economies
    Correct Answer: D. Transformative impact on lives and economies
    Explanation: Deep tech innovations have a transformative impact on lives, economies, and societies, differentiating them from shallow tech.
  4. Where are deep tech startups primarily concentrated in India?
    A. Hyderabad and Chennai
    B. Mumbai and Pune
    C. Bengaluru, Mumbai, and Delhi-NCR
    D. Kolkata and Ahmedabad
    Correct Answer: C. Bengaluru, Mumbai, and Delhi-NCR
    Explanation: Deep tech startups in India are primarily concentrated in Bengaluru (25-30%), Mumbai (10–12%), and Delhi-NCR (15–20%).

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