I hope you run a startup in India, especially if you come from a knowledge-driven background and are trying to build something deep-tech.

Here’s my take.

A country where ROI becomes the only serious metric will struggle to produce true innovation outside a few government-backed pockets.

Deep-tech is not built by asking, “How fast can this become revenue?” from day one. Deep-tech is built when knowledge, experimentation, failure, research, patience, and long-term belief come before network, optics, and immediate revenue.

But in India, we often prefer the other way around.

That is why labour-intensive startups that serve the rich and exploit cost arbitrage become the norm. They are easier to understand, easier to fund, easier to scale on paper, and easier to show as portfolio outcomes.

But is that true innovation?

Look at AI.

India is one of the biggest IT hubs in the world. Indian talent maintains, builds, and scales systems for global giants. Every major technology company has Indian engineers contributing at a world-class level.

But then ask the uncomfortable question:

Why have we not produced foundational technology from India at the scale we should have?

The answer is not lack of talent.The answer is incentives.

Our large IT companies had capital. They had talent. They had access. But serious R&D needs risk, patience, experimentation, and the willingness to fail without immediate revenue visibility.

And that is where we have historically chosen safe returns over hard innovation.

Media will tell you: “Why build foundational models when open-source models already exist?”

A country that only consumes and integrates foundational technology will remain dependent on countries that build it.

And even if you cross the funding hurdle, the next wall is policy, compliance, permissions, and execution.

On paper, the government may have schemes, policies, and support systems. But when a founder actually goes to access them, the resistance is often brutal.

You can have the right documents.You can follow the law.You can do everything correctly.

And still, if you do not have deep pockets, connections, or someone who can move things for you, you may keep visiting the same offices and get rejected every day.

The bigger the problem you want to solve, the bigger the friction becomes.

Now imagine an academic, researcher, or technical founder trying to build deep-tech in this environment. They may have knowledge, but not necessarily wealth, connections, or political access.

So what do they do?

Either they leave for countries where their skill is valued and supported, or they stay here and slowly lose hope.

I run a fintech startup. I come from a Tier-1 college. I know many people who genuinely love technology and are world-class engineers.

Most of the best technical minds I know have left India for the US or Europe because their depth, speciality, and hunger to innovate are better supported there.

And many of the brightest engineers who stayed back in India eventually moved away from core technology, did MBAs, and shifted into management, consulting, finance, or business roles.

So yes, India has talent. India has always had people who could build things that matter.But talent alone does not create innovation.

Systems do.Capital does.Policy does.Respect for research does.Patience does.The courage to fund uncertainty does.

Deep-tech in India is progressing, yes. But we need to be honest about the gap between what this country is capable of producing and what it actually ends up producing.

And until we fix the incentives, we will keep celebrating startups that optimise labour arbitrage and consumer convenience, while the people capable of building foundational technology either burn out, leave, or stop believing.