Indian deeptech needs government as first customer, says Agrani Labs CEO
Agrani Labs CEO Dheemanth Nagaraj has urged the Indian government to act as the first customer for domestic deeptech firms, arguing that local buyers are unwilling to pay for products that meet global standards. Speaking at the ETSA 2026 event, Nagaraj said Indian customers prefer cheaper, substandard alternatives over locally built hardware, leaving startups reliant on government procurement to scale.
The comment reflects a broader challenge for India’s deeptech sector, which has seen over $10 billion in venture funding in 2026 but still faces hurdles in commercialization. At a recent discussion, founders from sectors like semiconductors and space suggested that government-backed pilot projects could help validate products. The IITM-Unicorn deeptech fund’s ₹453 crore first close indicates investor interest, but Nagaraj’s remarks suggest a mismatch between capital and market readiness.
For hardware startups, government procurement could serve as a stepping stone. Without domestic validation, Indian deeptech firms may struggle to enter global supply chains, where buyers prioritize proven performance. Whether India’s procurement policies will evolve to address this remains unclear.
Sources: economictimes.indiatimes.com
“Agrani Labs CEO’s call highlights a structural gap in India’s deeptech ecosystem—early-stage hardware startups lack domestic customers willing to pay global prices.”
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- ETSA 2026: Indian deeptech firms need government as first customer to compete globally, says Agrani Labs CEO — economictimes.indiatimes.com
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