India stands at the cusp of a technological transformation driven by advances in deep-tech chemistry that encompass sustainable materials, new battery chemistries, renewable energy, green hydrogen and carbon-negative processes. These innovations have the potential to address India’s most pressing challenges with respect to climate change, food security, energy security and industrial manufacturing competitiveness.
Over the past decade, the Indian government has made sustained efforts to catalyse startup formation through multiple initiatives. These initiatives have laid a strong foundation and the challenge now is to build upon this progress by addressing second-order issues related to scale-up, translational research and market integration that are characteristic of mature innovation ecosystems globally.
However, deep-tech chemistry ventures in India operate within an innovation ecosystem that is still evolving. While fundamental elements are in place, challenges remain around ecosystem integration, access to scale-up infrastructure, clarity in technology transfer pathways from public research institutions and, most importantly, the availability of patient, long-term capital. Proactive governance, strategic investment and a policy environment that supports tech transfer are needed to prevent the country falling behind global innovation leaders.
A brief policy roadmap is proposed here to anticipate and effectively govern emerging chemistry-driven technologies by addressing critical systemic gaps through interconnected means, such as:
- Mission driven public R&D programmes supported by strategic infrastructure investments that can accelerate the translation of fundamental chemistry research into industrial applications.
- A robust support system for startups working on deep-chemistry technologies, including reforms in intellectual property policies and greater incentives for academic entrepreneurship.
- Pathways for scaling up these deep-tech innovations by integrating them into industrial policy frameworks to ensure commercial viability and broad market adoption.
India has taken important steps by launching mission oriented programmes through agencies like the Anusandhan National Research Foundation and by investing in scientific infrastructure across the country. As these programmes scale up, there is an opportunity to further strengthen their design by ensuring greater transparency, consistency and robust evaluation mechanisms, particularly for interdisciplinary research with commercial potential. At present, the conversion of fundamental chemistry research into scalable industrial applications remains limited. To overcome this, a coordinated, purpose driven R&D framework is essential. But it must be one that fosters interdisciplinary collaboration, prioritises national strategic goals and ensures equitable access to funding and facilities based on scientific and translational value..
As one of the world’s largest producers of pharmaceuticals and specialty chemicals, India’s strengths in chemistry and engineering are well established. Additionally, premier institutions like CSIR-National Chemical Laboratory (NCL) in Pune, CSIR-Indian Institute of Chemical Technology in Hyderabad, and Mumbai’s Indian Institute of Technology and Institute of Chemical Technology have strong synthetic and process chemistry capabilities. We are also witnessing a growing startup ecosystem, now the third largest globally. At the same time, the full economic and industrial value of academic chemistry innovations, particularly in advanced materials and energy generation/storage alternatives, has not yet been realised. Bridging this translational gap represents a significant opportunity to convert India’s strong research base into globally competitive, market-ready technologies.
Barriers in scaling deep-tech chemistry innovations
One of the most significant challenges is the high capital intensity associated with pilot plants and demonstration scale facilities, which often require investments ranging from INR0.5–5 billion (£4–40 million). This substantial financial requirement deters many early-stage investors and startups from pursuing scale-up activities.Additionally, the technology transfer process from premier research institutions is often slow and inefficient, with few exceptions. This can be primarily due to legacy policy structures, procedural complexityand a lack of incentive alignment for researchers to actively pursue commercialisation of their innovations alongside academic objectives. As a result, spinning off ventures can be a daunting prospect for scientists.
Compounding these issues is the absence of a nationwide network of scale up infrastructure. India does not have a system comparable to Germany’s Fraunhofer Institutes, the US Department of Energy’s pilot labs or the UK Battery Industrialisation Centre, which provide critical support to bridge the gap between laboratory research and industrial application.
There is a notable talent pipeline gap as few academic programmes effectively integrate chemistry with entrepreneurship and engineering disciplines. This results in a shortage of professionals equipped with the interdisciplinary skills necessary to navigate the complexities of deep-tech chemistry innovation and commercialisation.
Together, these barriers create a challenging environment for scaling chemistry driven technologies in India.
Policy gaps
Flagship initiatives like Startup India, Make in India and the Production Linked Incentive scheme (PLI) have significantly improved India’s innovation and manufacturing landscape. As the ecosystem matures, a natural next step is to more explicitly integrate the lab-to-market pipeline for deep-tech chemistry within these policy frameworks. In the absence of targeted support, startups working in critical areas face significant challenges in securing the necessary funding to scale their innovations. This funding gap often stalls promising ventures at early stages , preventing them from reaching commercial viability.
At the same time, many academic breakthroughs in chemistry and related fields remain confined to research papers or patents without being translated into practical applications or products. This disconnect between research and industry not only limits India’s capacity to innovate but also risks relegating the country to the role of a technology taker – importing and adapting innovations developed elsewhere rather than emerging as a technology creator and global leader in chemistry-driven deep-tech innovation.
Policy response
India must adopt a holistic approach towards emerging chemistry technologies, with a coordinated strategy across the ministries of Science and Technology, Chemicals and Fertilizers, Mines, Environment, and Heavy Industries while inviting onboard the large corporate houses in India. Such an approach should include the following reforms.
Mission driven R&D programs, infrastructure for translational chemistry and industry investments
India’s public R&D remains largely focused on basic science with few incentives for commercialisation. Public–private R&D alliances are limited to few institutes and restricted largely to process development for existing products.
It is recommended that India establish dedicated ‘chemi-missions’ modelled after initiatives such as Mission Innovation. These missions should focus on ambitious, transformative goals including the development of net-zero chemicals like green hydrogen and electrochemical ammonia, solvents for battery manufacturing, the advancement of circular chemistry, and new carbon capture technologies.
In parallel, funding should be directed towards the creation of translational chemistry centres located at strategic institutions to leverage and expand existing infrastructure and expertise. Each centre should actively collaborate with startups and small- and medium-sized enterprises, provide open-access facilities for scale-up testing, and implement programmes that provide skills and support to early-career researchers seeking to found startups.
In-line with schemes like PLI, government should facilitate significant and tangible incentives for industries to invest in high-risk, high-reward innovations from Indian academia.
Scaling/piloting facilities
Chemistry-based innovations often die in the ‘pilot valley of death’ due to lack of demo-scale infrastructure. It is recommended that India create regional chemistry pilot hubs for specific technologies, co-funded by the central government, state governments and local industry clusters. These hubs should be equipped with plug-and-play chemical reactors, advanced analytical laboratories and pre-manufacturing pilot facilities supported by skilled scale-up engineers. Additionally, existing institutions like the CSIR-NCL should be modernised and more closely connected with industry through outcome based funding models that are directly linked to successful technology transfers and startup incubation efforts.
IP reforms, tech transfer modernisation and patient capital
Public institutions such as CSIR and the Indian Institutes of Technology possess vast portfolios of chemistry related patents that remain largely underutilised. To better harness this intellectual property for innovation and commercialisation, it is recommended to standardise startup-friendly intellectual property (IP) licensing frameworks. Additionally, publishing all available chemistry patents on a centralised, accessible portal, similar to the World Intellectual Property Organization’s (WIPO) Green platform, would enhance transparency and facilitate technology scouting. Strengthening technology transfer offices by embedding full-time IP professionals within major research institutions, who are incentivised based on licensing outcomes, would further improve the commercialisation pipeline. Most importantly, enabling sabbaticals or similar provisions for scientist–founders would allow academic researchers to spin out companies without risking their tenure, thereby encouraging entrepreneurship.
India’s venture capital ecosystem is predominantly focused on digital and consumer technology sectors, leaving deep-tech chemistry startups at a disadvantage. These startups face unique challenges such as long gestation periods often ranging from eight to 12 years, regulatory ambiguity and limited access to early-stage offtake agreements that could provide crucial market validation and revenue. It is recommended to launch grant programs similar to the Small Business Innovation Research Initiative (modelled after the successful Biotechnology Industry Research Assistance Council), but extended to cover materials science, energy technologies and green chemical processes, to provide critical early stage funding to promising ventures. These policy measures would create an enabling environment that nurtures deep-tech chemistry startups, helping them overcome early-stage hurdles and move toward commercial success.
Scale-up pathways and market integration
As discussed in above sections, India currently faces significant challenges in scaling deep-tech chemistry innovations from the laboratory to the market due to so-called ‘scale-up gap’. The creation of ‘chemistry scale-up zones’ within existing industrial corridors would provide dedicated spaces equipped with environmental clearances, common effluent treatment and safety systems and streamlined access to logistics and testing facilities. A notable case study is the US Bioenergy Technologies Office, which offers shared pilot facilities and cost-share programs. Further, integrating industrial policy with clear demand signals is critical to accelerate the adoption of deep-tech chemistry innovations, particularly by heavy industries. Sector-specific decarbonisation plans can also align PLI schemes.
Another point to consider is India’s Government e-Marketplace, which is a valuable tool for digitising government procurement. However, its current design and operational norms present barriers for deep-tech chemistry startups when compared to the European Union’s Net Zero Industry Act.
Implementation roadmap for India
To ensure effective implementation of the proposed roadmap for deep-tech chemistry innovation, strong institutional coordination will be essential. It is recommended that a mission-mode programme be established for deep-tech chemistry as independent body. This mission should be guided by a high-level steering committee comprising key stakeholders, including the government’s Department for Promotion of Industry and Internal Trade, leading national research institutes, and bodies representing industry and startups.
Blended finance models that combine public funding with corporate social responsibility can also be created. However, the burden of ensuring industry participation should not be on the early-stage innovator. The mission’s performance can be tracked using well-defined monitoring metrics such as the number of pilot projects launched, revenue from commercialised patents and licensing, the number of chemistry-based startups funded, and scaled and measurable reductions in emissions and improvements in material circularity resulting from new chemistry innovations.
Conclusion
India’s ability to meet its long-term sustainability, industrial and energy security goals is fundamentally tied to its capacity to lead in deep-tech chemistry innovation. As the global economy shifts from fossil-carbon based systems to renewable and circular chemistry paradigms, India stands at a crossroads: it can either emerge as a leader in this transition, or risk becoming a passive adopter of technologies developed elsewhere. The path forward requires an integrated approach that aligns mission-driven research and development, startup-friendly policies and robust scale-up infrastructure. By doing so, India can foster the emergence of global champions in green and industrial chemistry, generate high value employment in clean technology sectors and fulfil its climate commitments through transformative innovations in materials and processes. Rather than merely reacting to disruption, India must anticipate it, and position itself at the forefront of the next wave of chemistry-led industrial transformation.
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