Eight U.S. and Indian venture capital and private equity firms, including Accel, Blume Ventures, Celesta Capital, and Premji Invest, have formed the India Deep Tech Investment Alliance, pledging over $1 billion in private capital over the next 5 to 10 years to support deep tech startups in India. The coalition aims to strengthen U.S.-India tech ties and address longstanding concerns about insufficient funding for high-impact, innovation-driven ventures in the country. The initiative comes in response to criticism from Indian Commerce Minister Piyush Goyal, who in April highlighted a perceived lack of focus on innovation among Indian startups, contrasting them with Chinese counterparts. Many founders and investors pushed back, arguing that the real barrier is not ambition but a scarcity of patient capital for deep tech—sectors like AI, semiconductors, quantum computing, robotics, biotech, and clean energy. What sets this alliance apart is its formal, coordinated structure. Unlike typical co-investments on a deal-by-deal basis, the group has made binding commitments to channel long-term capital into Indian-domiciled startups. The founding members—Celesta Capital, Accel, Blume Ventures, Gaja Capital, Ideaspring Capital, Premji Invest, Tenacity Ventures, and Venture Catalysts—will focus on early-stage companies from seed to Series B, avoiding late-stage investments. The alliance aligns with India’s newly launched ₹1 trillion ($11 billion) Research, Development, and Innovation (RDI) scheme, which requires startups to be incorporated in India to qualify for incentives. This policy shift is expected to drive more deep tech ventures to set up locally, creating opportunities for the alliance’s members. Beyond funding, the group will provide mentorship, strategic guidance, and access to cross-border networks. Members also plan to use the alliance to help their portfolio companies enter or scale in the Indian market. Celesta Capital’s Sriram Vishwanathan, who is leading the effort, said the goal is to “energize the ecosystem” by uniting like-minded investors. He emphasized that the alliance is not a fund but a collaborative platform, with no centralized decision-making. Instead, an advisory committee made up of representatives from Accel, Premji Invest, and Venture Catalysts will help coordinate activities while preserving each firm’s independence. Arun Kumar, managing partner at Celesta Capital and inaugural chair of the alliance, noted that the initiative reflects shared strategic interests between the U.S. and India in advancing critical technologies. The alliance will also engage with the Indian government to shape policy and ensure industry input in regulatory decisions—lessons learned from past policy rollouts that sparked backlash among foreign investors. While the alliance is still in its early stages, the members expect more firms, including corporates with dedicated investment arms, to join. They also anticipate that the platform will help streamline due diligence, share deal pipelines, and improve co-investment efficiency. The move arrives amid complex geopolitical dynamics. Although the U.S. and India launched the TRUST initiative in February to deepen tech collaboration, tensions have risen due to U.S. tariffs on Indian goods, partly over India’s continued energy purchases from Russia. Nevertheless, the alliance signals continued confidence in India’s potential as a global hub for foundational technology innovation. As Accel partner Anand Daniel put it, “Over the next decade, startups will build in India and export breakthrough solutions to the world.” With ambition, talent, policy support, and patient capital now converging, the alliance could mark a turning point for India’s deep tech ecosystem—though its success will depend on effective coordination and sustained commitment.