India’s deeptech sector is entering a phase of explosive growth, with its market potential expected to reach USD 30 billion (₹2.66 lakh crore) by 2030, according to a new report by Redseer Strategy Consultants. The report credits this momentum to rapid advances in defence innovation, robotics, and the country’s emergence as a trusted, low-cost global technology hub outside China.
Defence Innovation Leading the Charge
India’s national defence budget has doubled over the past decade to USD 80 billion (₹7.09 lakh crore), marking one of the sharpest increases globally and outpacing growth rates in the United States and China, Redseer noted.
The report estimates that India’s deeptech base—currently valued at USD 9–12 billion (₹79,000–1.06 lakh crore) in FY2025—has expanded 2.5 times in five years, powered largely by defence-linked innovation and robotics.
“India is fast becoming the only trusted, scalable, and cost-efficient deeptech hub outside China,” the report said, adding that sustained public-sector investment and private-sector collaboration are fueling predictable, investible growth opportunities.
Robotics and Humanoids: India’s Cost Edge
A significant portion of India’s deeptech expansion is linked to the global robotics industry, which is valued at USD 60 billion today and projected to rise to USD 230 billion by 2030.
Within this, humanoid robots are expected to form a USD 10 billion subsegment, with India uniquely positioned due to its cost advantage—up to 73 percent lower than production in the United States.
Redseer attributes this edge to India’s efficient local integration, lower labour costs, and optimized sourcing practices, factors that make it a natural choice for global manufacturing and innovation partnerships in robotics.
New Frontiers: AI-Enabled Systems and Intelligent Drones
The report also flags near-term opportunities across autonomous systems, AI-driven training, and energy propulsion technologies, particularly in drone development.
India’s defence-driven deeptech ecosystem, the report adds, is laying the foundation for the next “economic engine” of the country—anchored in intelligent and resilient systems designed for both domestic and global markets.
AI Adoption Triples in India: OpenAI’s Oliver Jay
Parallel to the deeptech surge, Artificial Intelligence (AI) adoption in India has reached an unprecedented scale, growing threefold year-on-year, according to Oliver Jay, Managing Director for International Strategy at OpenAI.
Speaking at CNBC-TV18’s Global Leadership Summit 2025, Jay credited India’s young, tech-savvy population as the key catalyst for this expansion. “If you build for India, you can build for the world,” he said, describing India as a strategic anchor in the global AI landscape.
He revealed that OpenAI’s ChatGPT study mode was inspired by Indian student usage patterns, and that ChatGPT Go has been made free in India to ensure wider accessibility.
Jay also announced that OpenAI will open its first India office in New Delhi later this year, underscoring the company’s growing engagement with Indian developers, enterprises, and policymakers. With India emerging as ChatGPT’s second-largest and fastest-growing market after the US, he said OpenAI remains committed to supporting India’s innovation ecosystem and democratizing AI adoption.
Deeptech Meets AI: India’s Next Innovation Wave
Industry analysts note that the convergence of AI, robotics, and defence technologies positions India at the forefront of a new global innovation cycle. With increasing government backing, rising private investment, and expanding global partnerships, India’s deeptech economy is evolving from niche R&D into mainstream industrial transformation.
As Redseer’s report concludes, India’s defence-led deeptech and AI momentum are setting the stage for the country to become a world leader in affordable, scalable, and secure technology innovation by 2030.
