Private Investment in Quantum Technology Ecosystem Need of Hour: Report The inaugural ITES-Q report presents a comprehensive overview of both global and national quantum ecosystems, including investment trends, talent development, institutional strengths, research output, intellectual property, startups, supply chains, and industrial activity.

India has attracted USD 30 million in private investment for quantum technology, significantly behind the United States and the United Kingdom, according to a new report released by Principal Scientific Adviser (PSA) Ajay Kumar Sood.

The report underscores the urgent need for stronger private sector investment in India's quantum ecosystem, as the U.S. leads with USD 6.9 billion in private funding—over 4.5 times that of the UK, which ranks second with USD 1.44 billion.

The International Technology Engagement Strategy for Quantum (ITES-Q) marks the country's first comprehensive outward-facing strategy for Quantum Science, Technology, and Innovation (QSTI). The strategy report aims to accelerate discovery, foster innovation, and catalyze the adoption of quantum technologies across critical sectors.

The report highlights India's global standing isn QSTI startups, ranking sixth with 53 startups. The U.S. leads the pack with 309, followed by Germany (110), the UK (92), China (63), and Canada (56).

"Data for investments and funding globally reveal a growing trend, peaking in 2021 with nearly USD 2.3 billion in investments. This represents a significant rise from 2013 levels," said PSA Sood. However, 2022 witnessed a dip in funding, even as many countries launched national missions and public programs, which boosted public funding, the report noted.

Talking about the means to unlock the full potential of India's quantum technology sector, Sood emphasized the need for greater funding support for startups and de-risking investments. "We need to create a market for quantum products. This is where all the players—government, private sector, academia, and startups—must come together," he said.

"We need to be an active player in defining the global standards for Quantum Tech. This is a gap we need to fill. Because once we have that, we will also play a role in standardisation efforts, and that is what leads to strategic autonomy. We have to do that very proactively and ensure that we have these global standards because our market is not only the Indian market but global," said Sood.

The report points out that, unlike global counterparts where deep-tech venture capital firms play a major role alongside public funding, India's quantum ecosystem is primarily funded by angel investors. Institutional investors such as VCs, tech corporates, and PE funds have played a limited role so far.

While India is emerging as a player in quantum computing, the country continues to lag in the quantum hardware space. "The idea is to invest more in quantum hardware and reduce India's dependency on imports," added Sood.

"To achieve scalability, Indian quantum startups need long-term, patient capital, which institutional investors are better suited to provide," said Dr. Parvinder Maini, Scientific Secretary, Office of the Principal Scientific Adviser. "Countries like the U.S., Germany, and the UK have used government-backed VC funds, public-private partnerships (PPPs), and corporate-led consortia to de-risk investments and attract institutional capital."

After the launch of HCLTech Trends report, Dr Naveen Kumar Malik, Associate Vice President at HCLTech and a leading expert in the field, had expressed his excitement about the transformative potential of quantum mechanics, stating, "A rising interest in quantum technology is fuelled by several breakthroughs on the technology side and a significant increase in investments. Advances include achieving quantum supremacy, developing an industrial quantum computer and quantum safe communication. These breakthroughs mark clear milestones on the path to much higher quantum maturity going forward."

The inaugural ITES-Q report presents a comprehensive overview of both global and national quantum ecosystems, including investment trends, talent development, institutional strengths, research output, intellectual property, startups, supply chains, and industrial activity.

Notably, the report does not prescribe specific policy actions but offers a detailed landscape analysis to help stakeholders in government, academia, and industry identify context-specific engagement strategies. This flexible, data-driven approach is designed to support informed, adaptive international collaboration in QSTI.