Can Startups & States Tap into the USD100 Billion Quantum Opportunity? With Karnataka's Rs 1,000 crore mission and a national push to build research and startup ecosystems, experts believe India could become a global quantum innovation hub if it bridges the talent and infrastructure gap in time
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The quantum computing industry is not a new leaf on the tree of global technology. But for India, it is still a largely unexplored frontier with significant potential. From the Centre to state governments, efforts are being made to drive the quantum mission and build an ecosystem that supports Indian startups.
Recently, the Karnataka government joined the Centre and Andhra Pradesh in advancing this mission by launching a INR 1,000-crore Quantum Mission. The goal is to transform the state into a USD 20 billion quantum economy by 2035 and establish it as the "quantum capital of Asia." As part of the initiative, the state announced the establishment of Q-City (Quantum City) near Bengaluru for quantum innovation, manufacturing, research, and talent development.
"By 2035, we aim to create 10,000 high-skilled jobs and establish Karnataka as the quantum capital of Asia," said Chief Minister Siddaramaiah.
The government also plans to launch a Quantum Venture Capital Fund to support over 100 startups and generate at least 100 patents in the sector. The overall initiative is expected to create more than two lakh direct jobs.
So, how will quantum technologies transform Indian industries in the coming years? Ranjeet Shetye, Venture Partner, YourNest and Managing Director, Everstream Analytics, who has backed quantum computing startup QpiAI, explained that quantum computing is expected to unlock a USD 90 to 100 billion global market by 2040. He believes India has a real opportunity to capture a significant share.
"In the next 5 to 10 years, we will see quantum-enabled breakthroughs where simulations can reduce drug discovery timelines by up to 70 percent. In logistics, route optimisations could improve efficiency by 20 to 30 percent. Initiatives like the National Quantum Mission, Karnataka's Quantum Mission, and Andhra Pradesh's Quantum Valley demonstrate strong intent to localise this future," Shetye said.
Aditya Joshi, Partner at VG Angels, shares a similar view. He believes quantum technology will usher in a new era of problem-solving from secure communication and faster drug development to intelligent logistics. "In the next 5 to 10 years, we expect industries such as finance, healthcare, defence, and manufacturing to benefit from better cybersecurity, faster drug discovery, and more efficient supply chains," shared Joshi.
He added that Karnataka's early momentum is encouraging. "States like Karnataka have already begun supporting around 35 startups through IISc Bangalore. This kind of early support can create a strong pipeline of innovation and position India not just as a user but as a global innovator in quantum technology."
However, the journey ahead is not without challenges. According to Shetye, India currently faces a severe talent gap in quantum computing, with only about 250 researchers working in the field nationally. Most quantum hardware is imported, and the capital cost of even basic equipment like a dilution refrigerator runs into several crores. "Enterprise adoption is also cautious due to the lack of immediate return on investment," he added.
To address these gaps, Shetye stressed the need for public-private co-investment and a comprehensive overhaul of university-level curricula. "We need to build talent from the ground up, and that starts in academia," he said.
Joshi pointed out that quantum computing requires a highly specialised deep tech skillset, which is still evolving in India. "Many businesses are curious but unsure about how to integrate quantum computing into their existing workflows," he said.
"Additionally, hardware and testing infrastructure is limited to a few academic institutions such as the IITs. For adoption to accelerate, we need better industry-academia collaboration, government-backed sandbox environments, and more patient capital."
What lies ahead for India's quantum computing ambitions?
"With the INR 6,000-crore National Quantum Mission and growing participation from states, India has the right ingredients to lead..."
"...By 2030, we expect three to five globally relevant quantum computing startups to emerge from India, particularly in software and middleware. The next five years are critical, we must move from research papers to real-world prototypes if we want to be creators rather than consumers of quantum technology," said Shetye.
He further highlighted how significant the stakes are. "AI thought leaders in the United States are earning up to USD 250 million in individual annual paychecks from companies like Meta, thanks to the high entry barriers and the first-mover advantage. We must approach quantum computing with a unified mission and a strong budget to support our startups."
Joshi concluded with optimism. "India has the potential to lead in this sector. We can expect several deep tech startups to emerge, strong research contributions from top Indian institutions like the IITs, and pilot projects initiated by major Indian enterprises. If we continue investing in talent and infrastructure, India can become a global hub for quantum innovation."
