Key Highlights:
- Report captures the pulse of 100+ engineering and hardware startups from cleantech, defense, electronics, and advanced manufacturing sectors
- Access gaps in digital tools (53%) and affordable digital design (55%) remain key hurdles for startups
- Critical Growth Factors identified include Infrastructure and Tech Adoption (52%), Favourable Funding Landscape (73%), and Talent Pool Availability (67%)
- Report set to power Viksit Bharat vision with actionable roadmap recommendations for startups, investors, and policymakers
Confederation of Indian Industry (CII), in collaboration with KPMG, one of India’s leading professional services firms, and Synopsys, Inc., the leader in silicon to systems design solutions, today unveiled India’s first comprehensive Engineering Hardware Industry Startup Ecosystem Report at the ICONN Summit 2025. The Summit aims to bring together corporate companies, investors, and startups to foster partnerships driving India’s innovation-led and sustainable growth journey toward Viksit Bharat @2047. With the engineering hardware industry on a high-growth path at $296 Billion by 2034, the report provides a comprehensive overview of India’s evolving hardware innovation landscape and its challenges, along with actionable recommendations for stakeholders across the ecosystem – from startups and investors to policymakers and institutions and is set to power India’s Viksit Bharat vision.
Mr C K Ranganathan, Co-Chairman, CII National Startup Council, said about the report “CII is proud to present this pivotal whitepaper, developed in collaboration with KPMG and Synopsys, which explores the immense potential of India’s engineering hardware startup ecosystem. As India advances toward the vision of Viksit Bharat@2047, deep-tech and hardware innovation will serve as vital drivers in achieving global leadership in manufacturing and technology. Drawing from extensive insights and comprehensive research, this publication outlines a strategic roadmap to unlock growth, foster innovation, and strengthen competitiveness across the hardware ecosystem. Together with our partners, CII remains committed to transforming these insights into impactful action, positioning India’s engineering hardware startups as a cornerstone of the Viksit Bharat vision.”
The report, capturing insights from over 100+ engineering and hardware startups, spans sectors including cleantech, defense, electronics, and advanced manufacturing. With widespread quantitative analysis of market size, investment trends, and growth projections within India’s engineering hardware ecosystem, the report offers an actionable roadmap with key recommendations for startups, investors, and policymakers that is beyond data and is aimed at fast-tracking innovation, encouraging cooperation, and driving sustainable growth across the sector.
Speaking about the report, Murali Pullela, Area Sales Director, Synopsys Inc. said, “As a global leader in engineering solutions from silicon to systems, we believe in the transformative power of technology to redefine industries and accelerate innovation. This report has captured the immense potential of India’s engineering hardware startup ecosystem. Startups have cited barriers like access to digital tools (53%) and affordable design technologies (55%) as major growth constraints and that begins with access to advanced simulation and design tools – exactly where we empower innovators to turn ideas into real-world impact. Strategic interventions are the need of the hour to unlock the sector’s full potential and we, at Synopsys, are committed to empowering startups with advanced simulation capabilities, helping them translate bold ideas into breakthrough innovations that strengthen India’s position in the global engineering landscape.”
The report highlights how India’s engineering hardware sector, a critical enabler of the country’s technology-driven growth, is all set for transformation through strategic collaboration and sustained innovation. With participations from industry leaders, entrepreneurs, and academia, the whitepaper also pinpoints opportunities to speed up growth, draw investments, and build globally competitive hardware startups.
Key Findings and Recommendations:
- Infrastructure and Tech Adoption (52%): Startups cite the lack of specialized facilities as a key challenge. The report recommends setting up testing facilities, fabrication labs, and prototyping centers in collaboration with public and private entities.
- Favorable Funding Landscape (73%): The whitepaper notes that while funding opportunities are expanding, accessibility remains limited for early-stage ventures. The report recommends creating dedicated funds and investment vehicles targeted at hardware startups through VC firms, angel investors, corporate venture arms, or government-backed investment entities along with early-stage capital and investor matchmaking support to help startups in their initial stages of setup and development.
- Talent Pool Availability (67%): A major constraint for hardware startups is the shortage of technically trained professionals. The report recommends investing in virtual training sessions (for example, using mixed reality devices) and conducting workshops to enhance technical skills, while collaborating with academia to provide training, workshops, and internships on real-world, industry-level problems to shape next-generation talent.
- Recommendations for startups: To create long-term differentiation and scalability, the report recommends startups to focus on value-added partnerships, improve digital capabilities, and prioritize sustainable product development.
- Recommendations for policymakers: To ensure a favorable environment for innovation and commercialization, the report calls for robust partnership between academia and industry, constant improvement in regulatory support, and strong IP protection frameworks.
- Recommendations for investors and institutions: To advance and deliver impact over time, the report recommends that investors and institutions highlight the importance of outcome-oriented funding mechanisms and patient capital, which will enable deep-tech and hardware ventures.
The Engineering Hardware Industry Startup Ecosystem Report is a joint effort by CII, KPMG, and Synopsys to nurture dialogue and drive strategic actions that strengthen India’s position as a global hub for engineering innovation.
