India Accelerator Shifts Focus to Deeptech and Defence
Ashish Bhatia, founder of India Accelerator, outlined a strategic shift for the organization to focus on defence and deeptech startups. The accelerator's new thesis suggests that the greatest investment opportunities now lie in companies with strong technical moats in areas like infrastructure, AI, and security, rather than in consumer applications.
- This strategic shift aligns with a broader government push for self-reliance in military technology, which has spurred the growth of over 1,000 defence startups. India's defence exports hit a record ₹23,622 crore in FY25, and 75% of the capital procurement budget is now reserved for domestic industry. - Startups in this sector can benefit from the government's Innovations for Defence Excellence (iDEX) initiative, which offers grants of up to ₹1.5 crore for solving specific challenges for India's armed forces. The iDEX program is managed by the Defence Innovation Organisation (DIO) and aims to foster innovation by engaging with startups, MSMEs, and academia. - The focus on deeptech is supported by the new National Deep Tech Startup Policy (NDTSP) and a ₹1 trillion Research, Development and Innovation (RDI) Fund from the government. In February 2026, the government also launched a ₹1,000 crore sovereign venture capital fund specifically for space startups. - Beyond government support, private capital is also flowing into the sector. The India Deep Tech Alliance (IDTA), a consortium of investors including Celesta Capital, Blume Ventures, and Nvidia, has allocated a dedicated $1 billion to be deployed into Indian AI startups over the next three years. - As India's only partner of the Global Accelerator Network (GAN), India Accelerator provides its portfolio companies with access to an international network of mentors, investors, and potential partners. The acceptance rate for accelerators into GAN is a highly selective 2%. - The accelerator's founder, Ashish Bhatia, is a serial entrepreneur who has previously co-founded companies including AppWorks and OrganIQ. - In a recent international expansion, India Accelerator launched a $15 million fund to help Indian startups in sectors like AI and deeptech scale into Saudi Arabia, in partnership with the Kingdom's National Technology Development Program (NTDP).
