DeepTech & Manufacturing
December 12, 2025
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India’s Blueprint for Deep Tech Leadership: Insights from DMII 3.0

India is standing at the edge of a 100‑year opportunity.

Every few decades, a country hits an inflection point where long‑term policy, global realignment and domestic ambition all line up. For India, that moment is now. The Viksit Bharat @ 2047 vision is no longer a slogan; it is a question of whether we control the deep technologies that power our nation.

Over the last 10 years, significant policy changes and the push for indigenization has led to a lot of assembly moving to India. 

But this is not enough. The critical technology components are still, in many cases, imported. To achieve Viksit Bharat in 2047, we have to win in deep tech, not just scale up factories.

This year’s Digitizing Make in India 3.0 report lays out something deeper than sector analysis. It offers a national operating system for how India can move from import dependency to design, development, and dominance.

So what must India change to become a deep‑tech global superpower by 2047?

Five Things India Must Do Now

To build a deep‑tech nation, India needs five big shifts, in policy, capital and talent.

1.Become an R&D Nation, Not Just an Assemble Nation

India still spendsz under 1% of GDP on R&D, far below the US (3.5%) and China (2.4%). We need a robust research environment with a pull for global talent to build in India. 

With multi-year, mission-led R&D projects co-funded with industry, India is sure to have a faster pathway from lab to market. 

If 2015-25 was the decade of scale, 2025-35 has to be the decade of R&D.

2. Put More PhDs Inside Factories, Not Only in Academia

India does not lack talent; it lacks where that talent sits.

We need PhD‑level researchers and specialists working in factories, design centres and foundries, not only in universities and overseas labs. 

With attractive return‑to‑India tracks for global Indian researchers, university tie-ups and ready-to use lab infrastructure, we can truly build a robust foundation for homegrown innovation.

3. Crack The Mid-Stack: Components, Materials and Subsystems

This is India’s deepest capability gap. 

Policy and capital both need to shift from finished goods to upstream value creation. Incentives that reward local design (DLIs) and manufacture of critical components (PLIs) and support for high‑capex deep tech plants are the key.

4. Turn Clusters into Real, Dense, Multi‑sector Engines

Innovation thrives when everything is close: talent, testing, design, and suppliers. That’s why India must build dense, multi-sector clusters, not scattered industrial pockets.

India’s next policy push should continue creating real, fully-equipped clusters with the relevant ecosystem in close proximity. By building process‑engineering academies inside clusters, MSMEs can rapidly develop the skills needed for advanced manufacturing.

5. Make AI a factory default, Not a Sideshow

India now has the building blocks: a national compute mission, rapidly growing data centre capacity and a strong software base. The next step is to wire AI directly into manufacturing: from design to final production.

With large government initiatives like the India AI mission, we can truly change the default way India builds.

Five Deep Tech Opportunities for India

Once these five shifts are in motion, the opportunities are enormous.

1. The Compute Stack: Build a Design-First Approach

There is a huge whitespace for India to own the design and critical parts of the stack: chip design, advanced packaging, power electronics, high‑value components and the AI hardware that runs on top.

2. India‑Focused Robotics for Factories and Defence

There is a huge opportunity to build “India‑backwards” robotic systems designed from day one for Indian data, cost structures and operating conditions. For example, unmanned ground vehicles (UGVs) and quadrupedal robotic dogs for surveillance and high-risk missions

3. Defence Platforms, Sensors and Dual‑Use Systems

India should focus on building high‑value subsystems (propulsion, avionics, advanced materials, sensors), which still come from abroad.

The defence budget has doubled in 10 years, with 92% of contracts in FY25 given to Indian manufacturers. The next frontier is clear: scale a strong defence-export corridor and establish India as a global supplier.

4. Energy, Storage and The Grid

To meet its 500 GW renewable energy 2030 targets, India will need hundreds of batteries for mobility and stationary storage. Inside that lies large opportunities in materials, chemistries, recycling, and power electronics.

On the grid side, there is equally large room for innovation: transformers, cables, smart‑metering components and the software layers that manage distributed energy. 

5. Pharma, Biotech and The Next‑Gen CRDMO Stack

There is space to build integrated platforms that go from discovery to development to manufacturing, with AI woven into drug design and process optimization.

What’s Next

If we make these five shifts, the five deep tech opportunity tracks above can create a large, globally competitive ecosystem where a major share of India’s 2047 economy is driven by Indian products and IP.

The next decade will be defined by founders, researchers and policymakers who choose the “difficult but necessary” problems: the components, materials, subsystems and platforms that are easy to ignore and impossible to substitute.

If we get this right, this will be the decade India becomes a builder’s nation again. 

For more information, write to us: namaste@Z47.com.
Stay connected with Z47.

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India’s Blueprint for Deep Tech Leadership: Insights from DMII 3.0

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India is standing at the edge of a 100‑year opportunity.

Every few decades, a country hits an inflection point where long‑term policy, global realignment and domestic ambition all line up. For India, that moment is now. The Viksit Bharat @ 2047 vision is no longer a slogan; it is a question of whether we control the deep technologies that power our nation.

Over the last 10 years, significant policy changes and the push for indigenization has led to a lot of assembly moving to India. 

But this is not enough. The critical technology components are still, in many cases, imported. To achieve Viksit Bharat in 2047, we have to win in deep tech, not just scale up factories.

This year’s Digitizing Make in India 3.0 report lays out something deeper than sector analysis. It offers a national operating system for how India can move from import dependency to design, development, and dominance.

So what must India change to become a deep‑tech global superpower by 2047?

Five Things India Must Do Now

To build a deep‑tech nation, India needs five big shifts, in policy, capital and talent.

1.Become an R&D Nation, Not Just an Assemble Nation

India still spendsz under 1% of GDP on R&D, far below the US (3.5%) and China (2.4%). We need a robust research environment with a pull for global talent to build in India. 

With multi-year, mission-led R&D projects co-funded with industry, India is sure to have a faster pathway from lab to market. 

If 2015-25 was the decade of scale, 2025-35 has to be the decade of R&D.

2. Put More PhDs Inside Factories, Not Only in Academia

India does not lack talent; it lacks where that talent sits.

We need PhD‑level researchers and specialists working in factories, design centres and foundries, not only in universities and overseas labs. 

With attractive return‑to‑India tracks for global Indian researchers, university tie-ups and ready-to use lab infrastructure, we can truly build a robust foundation for homegrown innovation.

3. Crack The Mid-Stack: Components, Materials and Subsystems

This is India’s deepest capability gap. 

Policy and capital both need to shift from finished goods to upstream value creation. Incentives that reward local design (DLIs) and manufacture of critical components (PLIs) and support for high‑capex deep tech plants are the key.

4. Turn Clusters into Real, Dense, Multi‑sector Engines

Innovation thrives when everything is close: talent, testing, design, and suppliers. That’s why India must build dense, multi-sector clusters, not scattered industrial pockets.

India’s next policy push should continue creating real, fully-equipped clusters with the relevant ecosystem in close proximity. By building process‑engineering academies inside clusters, MSMEs can rapidly develop the skills needed for advanced manufacturing.

5. Make AI a factory default, Not a Sideshow

India now has the building blocks: a national compute mission, rapidly growing data centre capacity and a strong software base. The next step is to wire AI directly into manufacturing: from design to final production.

With large government initiatives like the India AI mission, we can truly change the default way India builds.

Five Deep Tech Opportunities for India

Once these five shifts are in motion, the opportunities are enormous.

1. The Compute Stack: Build a Design-First Approach

There is a huge whitespace for India to own the design and critical parts of the stack: chip design, advanced packaging, power electronics, high‑value components and the AI hardware that runs on top.

2. India‑Focused Robotics for Factories and Defence

There is a huge opportunity to build “India‑backwards” robotic systems designed from day one for Indian data, cost structures and operating conditions. For example, unmanned ground vehicles (UGVs) and quadrupedal robotic dogs for surveillance and high-risk missions

3. Defence Platforms, Sensors and Dual‑Use Systems

India should focus on building high‑value subsystems (propulsion, avionics, advanced materials, sensors), which still come from abroad.

The defence budget has doubled in 10 years, with 92% of contracts in FY25 given to Indian manufacturers. The next frontier is clear: scale a strong defence-export corridor and establish India as a global supplier.

4. Energy, Storage and The Grid

To meet its 500 GW renewable energy 2030 targets, India will need hundreds of batteries for mobility and stationary storage. Inside that lies large opportunities in materials, chemistries, recycling, and power electronics.

On the grid side, there is equally large room for innovation: transformers, cables, smart‑metering components and the software layers that manage distributed energy. 

5. Pharma, Biotech and The Next‑Gen CRDMO Stack

There is space to build integrated platforms that go from discovery to development to manufacturing, with AI woven into drug design and process optimization.

What’s Next

If we make these five shifts, the five deep tech opportunity tracks above can create a large, globally competitive ecosystem where a major share of India’s 2047 economy is driven by Indian products and IP.

The next decade will be defined by founders, researchers and policymakers who choose the “difficult but necessary” problems: the components, materials, subsystems and platforms that are easy to ignore and impossible to substitute.

If we get this right, this will be the decade India becomes a builder’s nation again. 

We are excited about the innovation and growth opportunities in this sector.

If you are considering building in the footwear space, we’d love to chat.
Drop us a line at consumer@matrixpartners.in

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Z47^fortyseven is up +23.9% since its January 2024 base date, versus Nifty 500's +18.4%, ahead by 550 bps.

The cohort moved +4.7% over the month versus Nifty 500's +2.5%, leading by 220 bps.

Anchored in domestic demand and rising digital adoption, the cohort remained resilient amid global headwinds.

Consumer Tech was the best-performing sector at +9.2% last month, driven by sustained growth in consumer demand and strength in consumer-internet platforms.

Largest Constituents  ·  The Names That Anchor The Index

1.
Eternal
Quick-commerce leadership and continued investment
▲ +12.8%
2.
Groww
Broking market-share gains and margin-funding growth.
▲ +10.4%
3.
Lenskart
Store densification and margin expansion.
▲ +2.4%

Top Gainers  ·  Key Drivers

1 MONTH RETURN
1.
CarTrade
Auto-marketplace dominance and a cash-rich balance sheet.
▲ +59.4%
2.
 Amagi Media Labs
Profitability turnaround and AI-led cloud media adoption.
▲ +31.4%

Top Laggards  ·  Key Drivers

1 MONTH RETURN
1.
Fractal Analytics
Enterprise AI spending trends and post-listing share supply.
▼ -10.8%
2.
MedPlus Health
Pharmacy-margin pressure and competitive intensity.
▼ -6.6%

Key Themes  ·  Latest Results

In Q4FY26, Z47^fortyseven's cohort grew top line ~39% YoY, more than 3x the broad market's ~12% growth.

Operating leverage lifted net margins around 500 bps into positive territory, even as broad-market net margins remained roughly flat.

With 40 of 47 companies now profitable, the cohort reflects a broader shift toward profitable growth over growth at any cost.

AI adoption runs deeper across this cohort than in the broader market, with companies using it to drive growth and reshape demand, not just improve efficiency.

Cash generation is increasingly defining the winners, enabling market leaders like Eternal, CarTrade, and PB Fintech to fund acquisitions and expansion from their own balance sheets.

Market & Macro Context

The cohort saw several block deals this month, including sizeable stake sales in Lenskart, Delhivery, Honasa, and Shadowfax.

Ownership continues to shift from foreign investors to domestic institutions, creating a more durable shareholder base.

AI remained the defining technology investment theme, driving capital deployment across both private and public markets.

IPO Takeaway · Kissht

Listed May 2026

A modest listing pop followed by strong post-listing gains reinforced the market's preference for asset quality and disciplined underwriting over pure loan-book growth.

The listing helped reset perceptions around unsecured lending, creating a constructive valuation anchor for the issuers that follow.

The buyer mix was a notable positive — strong participation from long-only domestic institutions supporting a durable post-listing ownership base.

Net Read

Fundamentals continued to strengthen across the cohort, with growth, margins, and cash generation improving in tandem.

Performance dispersion widened, with profitability and earnings quality increasingly distinguishing the strongest performers from the rest.

Disclaimer

Z47^fortyseven is published for informational purposes only and does not constitute investment advice, or any offer, solicitation, or recommendation to buy or sell securities. Index performance is historical and should not be construed as indicative of future results.

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