New Delhi: The India Deep Tech Alliance (IDTA) has released its inaugural report, AI and Deep Tech Investments Landscape 2026, highlighting strong growth in artificial intelligence funding and capital commitments across India’s innovation ecosystem.
The AI and Deep Tech Investments Landscape 2026 report shows that AI funding in India increased by 58% year-over-year in 2025, marking a significant milestone in the country’s deep-technology investment cycle.
According to the AI and Deep Tech Investments Landscape 2026 report, IDTA also announced a dedicated $1 billion investment allocation for Indian AI startups over the next three years.
This forms part of the broader $2.5 billion capital commitment by alliance members toward deep tech investments in India. The AI and Deep Tech Investments Landscape 2026 report positions AI and deep tech as core areas of venture capital and private equity activity in the country.
The findings in the AI and Deep Tech Investments Landscape 2026 report show that AI recorded 188 deals totaling $1.22 billion in 2025, reflecting a 58% year-over-year rise in funding value.
Beyond AI, other deep tech sectors accounted for 147 deals totaling $1.19 billion during the same period. Overall, deep tech startups in India attracted $2.1 billion across 289 deals in 2025, according to the AI and Deep Tech Investments Landscape 2026 report.
Over the past decade, the AI and Deep Tech Investments Landscape 2026 report notes that deep tech investments reached $27.9 billion across 2,178 deals involving 1,217 companies.
Deep tech’s share of total VC-PE funding grew from 4% in 2016 to approximately 15% in 2025.
During the same period, AI’s share of venture funding increased from about 4.5% in 2020 to roughly 12.3% in 2025, reinforcing the trend highlighted in the AI and Deep Tech Investments Landscape 2026 report.
The AI and Deep Tech Investments Landscape 2026 report also highlights the role of policy support, particularly initiatives by the Government of India such as the ₹1 lakh crore Research Development and Innovation (RDI) Fund, in strengthening India’s research and commercialization ecosystem.
Since its launch in September 2025, IDTA has focused on mobilizing long-term capital and ecosystem support for deep tech founders.
The alliance has expanded its total commitment to more than $2.5 billion in funding for Indian deep tech startups over the next five years, while members have already deployed $110 million into more than 50 companies in the past six months, as noted in the AI and Deep Tech Investments Landscape 2026 report.
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AI and Deep Tech Investments Landscape 2026: Deep Tech Now Core Allocation in India’s Venture Market
Arun Kumar, India Managing Partner at Celesta Capital and Chair of IDTA, said: “India’s AI and deep tech breakout is now measurable: the IDTA’s inaugural report shows AI funding jumped 58% in 2025 and deep tech is rapidly becoming a core allocation in India’s venture market. But this moment demands more than optimism; it requires decisive execution.
That’s why, within IDTA members’ more than $2.5B in deep tech commitments, we’re fast-tracking a dedicated $1B allocation specifically for India’s AI ecosystem to be deployed over the next three years – concentrated firepower to help Indian AI companies scale faster, commercialize breakthrough IP, and compete globally at every layer of the stack.”
Sudhir Sethi, Founder and Chairman of Chiratae Ventures, said: “Deep tech is now a defining engine of India’s next wave of value creation, across semiconductors, AI, robotics, space, and advanced manufacturing. This report makes the opportunity clear, and it also makes the bottlenecks clear: growth capital, adoption pathways, and ecosystem coordination.”
The AI and Deep Tech Investments Landscape 2026 report is available here:
