AI and Deep Tech Investment Surge in India: A 2025 Showcase

AI and deep tech sectors in India have attracted substantial investment momentum by 2025, with AI's share in VC funding rising to 12% from under 5% in 2020. The sector attracted $1.2 billion in 2025, showcasing strong investor confidence in technology-led innovation across various industries.

A recent report by the India Deep Tech Alliance reveals a significant surge in investments in Artificial Intelligence (AI) and deep tech sectors in India. AI's share in Venture Capital (VC) funding has climbed to 12% in 2025, compared to just under 5% in 2020, showcasing increasing investor confidence in tech-driven innovation.

In 2025, AI companies secured 188 investments worth USD 1.2 billion, representing a 58% year-on-year increase. The report attributes this rise to the growing adoption of AI in enterprise software, healthcare, financial services, cybersecurity, and industrial applications. AI now represents about 12% of total VC funding, marking significant growth.

The report highlights that since 2016, around USD 28 billion has been invested in over 2,100 deep tech deals, with deep tech constituting 15% of total private equity and VC activity, a significant rise from 4% a decade ago. Despite a general moderation in VC activity in 2025, tech-led sectors, particularly AI and deep tech, continued to outperform, indicating a strategic pivot in investor focus.

This trend marks a shift from consumer-led growth to innovation driven by science, engineering, and intellectual property. Diversification within the deep tech sector is evident, with momentum in space technologies, semiconductors, robotics, advanced manufacturing, and climate technologies. Early-stage investments in deep tech have more than doubled in five years, building a strong pipeline for future tech leaders.

(With inputs from agencies.)