- Published on September 8, 2025
- In Deep Tech
When Capital Becomes Diplomacy: Inside the $1B India-US Deep Tech Alliance
While opinions vary on its potential, the initiative highlights the growing strategic importance of India in the global tech landscape.
- By Smruthi Nadig
As trade tensions between the US and India escalate, with tariffs climbing to unprecedented levels, another story is quietly unfolding. A group of US and Indian venture capitalists (VCs) has announced a $1 billion alliance to fund deep tech startups in India over the next decade.
At first glance, the two developments seem unrelated. But together, they underscore a paradox: while traditional trade ties between the two nations are fraying, capital flows into deep tech may emerge as a new form of diplomacy, or at the very least, a hedge against uncertainty.
The alliance brings together a network of venture firms with the stated goal of bridging India’s early-stage funding gap in deep tech areas such as semiconductors, quantum computing, and artificial intelligence. India has lon
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Smruthi Nadig
Smruthi brings over two years of experience in reporting on the global energy industry. They hold a Master's Degree from the University of Leeds in International Journalism and a Bachelor's Degree from Christ University in Media Studies, Economics and Political Science.
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