6 days ago
What Will be VCs' Next Bet on Tech?
"I believe India is at the start of its industrial decade, where hardtech and IP-led innovation will define global competitiveness," says Ashish Taneja, Founder & CEO, growX
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India has officially become the fourth-largest economy in the world, crossing the USD 4 trillion mark. It has expanded by 6.5 per cent in FY25, driven by a 7.4 per cent surge in the fourth quarter (January–March) and a revised 6.4 per cent growth in the third quarter (October–December).
"We are the fourth largest economy as I speak. We are a USD 4 trillion economy as I speak," BVR Subrahmanyam, CEO of Niti Aayog announced following the 10th Governing Council meeting of Niti Aayog.
"If we stick to what is being planned and what is being thought through, in 2.5–3 years, we will be the third largest economy," he further added.
While macroeconomic indicators validate India's rise, it's the startup ecosystem that acts as the innovation engine. In Q1 2025 alone, Indian startups raised USD 3.1 billion across 232 deals, a 41 per cent jump from the same period last year. This signals not just recovery but renewed investor confidence, particularly in transformative, high-impact technologies.
But the nature of what excites investors is rapidly evolving.
"We moved away from consumer blitzscale long ago," says Ashish Taneja, Founder & CEO at growX Ventures. "What excites us is deeptech with real-world defensibility—companies building satellites, chips, battlefield AI, and intelligent robotics. These aren't just startups, they're tomorrow's institutions."
The rise of india's industrial decade
India is now entering what many are calling its "industrial decade." Unlike the startup surge of the past that focused on rapid user growth and digital consumer platforms, the next wave will be defined by heavy engineering, core IP development, and national-scale tech missions.
"I believe India is at the start of its industrial decade, where hardtech and IP-led innovation will define global competitiveness," Taneja notes. "The breakout sectors in the next 3–5 years will be space-tech, defence platforms, semiconductors, AI-driven automation, and sustainable materials. And AI won't be a vertical anymore, it'll be the invisible OS powering them all."
Additionally, India's maturing capital environment is now more supportive of patient capital, investments with longer gestation periods, often needed for deep tech and hard science innovations.
Taneja reinforces this view, "I believe India's next global giants won't be built in garages. They'll be built in labs, fabs, and test ranges by founders chasing frontiers, not just funding rounds."
