India’s Strategic Imperative: The Urgent Need for Global Acquisitions in Applied Science and Core Sector Engineering

India Must Act Decisively to Secure Its Technological Future

India’s geopolitical and economic success will be determined by how aggressively it moves to acquire applied science and core engineering companies across the world. The traditional model of relying on organic growth, slow technology absorption, and government-driven industrial policies is inadequate in an era where control over strategic industries dictates global power. The next wave of industrial dominance will be shaped by those who command key technologies in semiconductors, aerospace, energy, artificial intelligence, and biotechnology. If India does not secure a foothold in these domains, it will become technologically dependent, limiting its ability to shape global policies on its own terms.

The world is rapidly shifting towards economic nationalism, where countries are tightening controls over technology exports and foreign investments. The leading global powers have imposed stricter regulations on the transfer of advanced technologies, fearing that strategic competitors will use them to challenge their dominance. While some nations have executed an aggressive strategy of acquiring global tech firms and integrating them into their industrial ecosystems, India has remained overly cautious. This passivity is no longer an option. If India does not act decisively to acquire companies in applied sciences and engineering, it will be permanently locked out of the next technological revolution.

Indian investors, including venture capitalists, private equity firms, and corporate houses, must recognize that their global competitiveness depends on securing ownership of core technologies. Founders who are building high-tech businesses in India will struggle to scale globally if they lack access to proprietary research, advanced manufacturing capabilities, and international supply chains. Without acquiring strategic technology firms abroad, Indian companies will continue to operate in a constrained ecosystem, dependent on foreign partners who control the most valuable innovations. The only way to break this cycle is to take an aggressive approach—buying out struggling deep-tech firms in the West, forming joint ventures with high-tech startups, and integrating cutting-edge technologies into India’s industrial framework.

The Cost of Inaction: Economic and Geopolitical Consequences

If India fails to pursue an aggressive acquisition strategy, the economic and geopolitical consequences will be severe. On the economic front, Indian entrepreneurs and industrialists will face insurmountable barriers to global expansion. Deep-tech businesses operate differently from IT services or consumer startups. Unlike software, which can scale with minimal infrastructure, deep-tech firms require long-term investments in research, specialized talent, and capital-intensive production capabilities. Indian firms that attempt to build deep-tech solutions without access to proprietary technology will struggle against global competitors who already control these ecosystems.

The inability to acquire cutting-edge technologies will limit India’s ability to develop high-value industries. The semiconductor industry, for example, is not just about setting up fabrication plants but about owning the intellectual property that governs chip design and manufacturing. If India does not acquire firms that already possess this knowledge, it will remain dependent on foreign suppliers for advanced chips, making it vulnerable to supply chain disruptions and geopolitical pressures. The same applies to aerospace, defense, and green energy—sectors where countries that control core engineering capabilities dictate terms to the rest of the world.

Geopolitically, India’s failure to secure strategic acquisitions will weaken its negotiating power in global alliances. Countries that do not own key technologies are forced into asymmetric relationships, where they must accept trade agreements, defense deals, and industrial partnerships on unfavorable terms. The major global players prioritize nations that bring technological assets to the table. Without ownership of applied science companies, India will struggle to influence global technology policies, supply chain networks, and security frameworks.

Some nations have already executed large-scale acquisition strategies to secure access to strategic technologies. While resistance to such acquisitions is growing in Western economies, India still enjoys diplomatic goodwill in the US, Europe, and Israel. This creates a narrow but significant window of opportunity for Indian investors to acquire stakes in deep-tech firms before geopolitical rivalries close off access to these assets.

The Closing Window for Technology Acquisition and the Need for Speed

The opportunity to acquire applied science and engineering firms will not remain open indefinitely. Global powers are tightening regulations on foreign investments in critical technologies. Some of the largest economies have already imposed new restrictions on semiconductor technology exports, and there are ongoing discussions about limiting non-domestic acquisitions in key sectors like artificial intelligence, quantum computing, and energy storage. As global supply chains realign, access to high-tech industries will become increasingly difficult for latecomers.

At the same time, financial pressures on Western deep-tech startups and mid-sized firms have created a rare moment where Indian investors can step in as strategic buyers. Many deep-tech firms in Europe and the US struggle to secure long-term funding because traditional venture capital prefers faster returns from software-driven businesses. This financial gap creates a unique opening for Indian firms to acquire companies at relatively lower valuations, integrating their technologies into India’s industrial ecosystem while also expanding their global footprint.

Israel presents another compelling case for strategic acquisitions. As a global leader in cybersecurity, defense technology, and semiconductor innovation, Israel has developed a highly advanced deep-tech ecosystem. Indian investors can leverage strong diplomatic and defense ties to acquire stakes in Israeli deep-tech firms without facing the same level of regulatory scrutiny that other foreign investors often encounter. These acquisitions would give Indian firms direct access to proprietary defense technologies, AI-driven cybersecurity solutions, and advanced industrial automation tools.

Applied Science and Core Engineering: The Battlefields of the Future

The global industrial and geopolitical landscape is shifting towards deep-tech and applied sciences as the primary drivers of economic power and national security. Nations that dominate foundational technologies in semiconductors, aerospace, energy, artificial intelligence, and biotechnology will set the terms for global trade, security alliances, and industrial supply chains. India cannot afford to remain an outsider in this transformation. It must aggressively acquire companies that already possess these critical capabilities rather than relying solely on domestic research and slow-moving industrial policies.

Semiconductors are at the heart of every advanced industry, from consumer electronics to defense systems and artificial intelligence. The global chip industry is controlled by a handful of players who dictate supply chains, pricing, and innovation cycles. India currently lacks a strong presence in high-end semiconductor design and manufacturing, making it vulnerable to supply chain shocks and geopolitical restrictions on chip exports. Establishing domestic fabrication plants is a step forward, but without ownership of proprietary chip design, fabrication technologies, and advanced lithography processes, India will remain dependent on external players.

Acquiring semiconductor companies in the US, Europe, and Israel would allow Indian firms to gain access to cutting-edge design capabilities, chip architectures, and manufacturing expertise. These acquisitions would reduce reliance on foreign suppliers and enable India to become a strategic player in the global semiconductor ecosystem. Moreover, owning semiconductor intellectual property would enhance India’s bargaining power in international trade and security agreements, ensuring that its technological future is not dictated by external forces.

The aerospace and defense industries represent another crucial battlefield where India must establish dominance. Modern warfare and global security are increasingly dependent on next-generation fighter jets, missile systems, drone technology, and space-based surveillance. Countries that do not own proprietary aerospace and defense technologies are forced to import critical systems under restrictive terms, limiting their strategic autonomy.

India has made progress in indigenous defense manufacturing, but much of its advanced defense technology still relies on foreign imports. By acquiring aerospace engineering firms and defense technology startups in Europe, the US, and Israel, Indian companies can integrate advanced propulsion systems, avionics, and autonomous military technology into domestic production. The future of warfare will be dictated by artificial intelligence-driven defense systems, hypersonic weapons, and space-based military capabilities. Without ownership of these core technologies, India will remain dependent on foreign suppliers, unable to dictate its own defense strategies in a world of shifting alliances.

Energy security is a defining factor in global geopolitics, and the nations that lead in energy storage and renewable technologies will control the future of industrial and economic growth. As the world transitions away from fossil fuels, the race to develop next-generation battery storage, hydrogen fuel cells, and nuclear fusion will determine economic leadership in the 21st century.

Currently, a few dominant players control battery supply chains, electric vehicle technology, and high-efficiency solar and wind energy solutions. India’s push towards renewable energy will remain incomplete unless it acquires companies that are already pioneering breakthroughs in energy storage and transmission. Without proprietary control over these technologies, India will be forced to import critical components, leaving its clean energy ambitions vulnerable to supply chain disruptions and geopolitical bargaining.

Indian investors must target companies that specialize in solid-state batteries, hydrogen fuel technology, and advanced nuclear power solutions. By securing ownership of these firms, India can develop a sustainable and independent energy future, reducing its reliance on global energy markets while positioning itself as a leader in the green industrial revolution.

Artificial intelligence (AI) and quantum computing are set to redefine every industry, from cybersecurity and defense to finance and healthcare. Countries that control these technologies will dominate global economic and military strategies. AI-driven automation is already transforming manufacturing, logistics, and national security, while quantum computing has the potential to disrupt encryption, materials science, and pharmaceutical research.

India has a growing AI ecosystem, but much of its cutting-edge AI research is still dependent on Western software and hardware infrastructure. AI is only as powerful as the computing hardware it runs on, and without proprietary semiconductor and quantum computing capabilities, India will struggle to achieve true technological self-sufficiency.

Acquiring AI and quantum computing startups in Europe, Israel, and the US would give Indian firms access to critical advancements in neural networks, machine learning algorithms, and next-generation computing architectures. These acquisitions would allow Indian companies to integrate AI into critical sectors like defense, financial modeling, and biomedical research, ensuring that India is not left behind in the intelligence-driven global economy.

The global healthcare industry is undergoing a revolution driven by advancements in genetic engineering, AI-driven drug discovery, and precision medicine. Nations that own proprietary research in biotechnology will control the next phase of global health security, from vaccine development to bio-defense strategies.

India has a strong pharmaceutical industry, but its biotech sector is still in the early stages of development. Acquiring biotech firms in the US and Europe would accelerate India’s ability to develop gene-based therapies, bioengineered pharmaceuticals, and advanced medical devices. These acquisitions would also strengthen India’s position in global healthcare markets, allowing it to lead in medical innovation rather than simply being a low-cost manufacturing hub for Western pharmaceutical firms.

In addition, synthetic biology and bio-manufacturing are emerging as key industries that will impact agriculture, food security, and industrial processes. By investing in companies that are developing lab-grown materials, biofuels, and engineered enzymes, India can secure a leadership position in the next wave of industrial biotechnology.

Every major industrial power today is engaged in an intense struggle to secure control over these key technological domains. Countries that fail to acquire these capabilities will be left dependent on foreign suppliers, unable to influence global markets and security frameworks. India must move beyond a passive approach to technology adoption and take an active role in acquiring firms that hold strategic value.

The challenge is not just about economic growth—it is about ensuring that India does not become permanently locked out of the next phase of technological supremacy. In a world where global alliances are shifting and trade barriers are increasing, self-reliance will not come from isolation but from strategic ownership of technologies that shape the future.

To achieve this, Indian investors, government-backed funds, and industrial conglomerates must deploy capital aggressively. The focus should not be on incremental expansion but on making bold, high-impact acquisitions that immediately bring India into the core of the global technological race. Applied sciences and core engineering are the new battlegrounds, and India must act with urgency to ensure it is not left behind.

A Fundamental Shift in Investment Strategy

India’s traditional investment landscape has been too cautious, focusing on low-risk sectors while ignoring the long-term strategic value of deep-tech. Investors have prioritized software and fintech over core industrial technology, creating an imbalance where India excels in services but lags in foundational innovation. The country’s venture capital (VC) and private equity (PE) industries have been primarily focused on software, IT services, and consumer-driven startups, while neglecting capital-intensive, high-reward sectors such as semiconductors, aerospace, and core engineering. This approach has yielded short-term gains but has also left India lagging behind in sectors that will define the future of global industrial and economic power.

For India to create globally competitive technology-driven companies, its investors must fundamentally change their mindset. VCs, PEs, and strategic investors must stop looking for quick exits and begin investing in businesses that drive long-term value. The biggest returns in the next two decades will come from those who control deep-tech and applied science firms, not from yet another e-commerce or fintech startup. This is not just about national interest—it is about capturing enormous economic value and delivering unprecedented returns to limited partners (LPs).

Indian venture capitalists have traditionally followed a Silicon Valley-inspired playbook, prioritizing investments in software, SaaS, fintech, and internet-based consumer businesses. While these sectors have generated rapid returns, they do not offer the same level of strategic or economic influence as core industrial and deep-tech businesses. The challenge with this approach is that it creates companies that are highly dependent on foreign technology infrastructure—whether it’s cloud computing, chip manufacturing, or AI research.

To compete globally, Indian VCs must shift their focus to industrial innovation. Investing in AI is not enough if India does not own the chips that power AI systems. Supporting automation startups is not enough if India does not control the sensors, robotics, and IoT devices that drive industrial automation. Instead of merely funding software platforms, Indian VCs must look at investing in semiconductor design startups, space-tech firms, AI-driven cybersecurity, quantum computing ventures, and biotech companies.

Deep-tech investments often have longer gestation periods, but they create companies that own real, defensible intellectual property (IP) and cannot be easily replaced. The investors who back these sectors today will be the ones who dominate the global industrial landscape in the next decade. Indian VCs must think beyond five-year return cycles and take inspiration from sovereign wealth funds and global technology investors who bet on fundamental scientific breakthroughs.

Private equity in India has primarily focused on sectors such as real estate, financial services, and traditional manufacturing. While these investments have generated stable returns, they do not position India as a leader in high-value global industries. To change this, Indian PE firms must take an aggressive approach to acquiring foreign deep-tech and applied science companies.

Global private equity giants have already recognized the immense value in acquiring and consolidating deep-tech companies, but Indian firms have been largely absent from this game. By acquiring technology-driven firms in Europe, the US, and Israel, Indian PEs can integrate their technologies into domestic industrial players while simultaneously scaling them into global markets.

The playbook should be clear: Identify undervalued but high-IP deep-tech firms, acquire them, and create category leaders by integrating them into larger industrial ecosystems. Instead of only focusing on operational efficiencies and financial engineering, Indian PEs must start building conglomerates that control entire value chains in semiconductors, aerospace, energy, and quantum computing.

This approach will not only generate superior returns but will also position Indian industrial groups as global technology leaders. The investors who move first will control the most valuable assets of the next industrial revolution, while those who hesitate will be forced to buy technology at inflated prices in the future.

Beyond traditional VC and PE players, India’s strategic investors—including large industrial houses, sovereign wealth funds, and government-backed investment vehicles—must act with a sense of urgency. While some progress has been made in sectors like defense manufacturing and renewable energy, India’s largest corporations still under-invest in applied sciences compared to their global counterparts.

Strategic investors must take a long-term view and aggressively deploy capital to acquire or partner with technology firms abroad. Instead of waiting for government policies to incentivize industrial growth, they must take the initiative in securing critical assets. This requires a shift from being mere operators of industrial businesses to becoming technology-first organizations that actively acquire, integrate, and scale cutting-edge innovations.

The best-performing global corporations are those that control key technologies rather than merely assembling products. India’s industrial giants must recognize that their future competitiveness will depend on whether they own IP in next-generation computing, energy storage, and advanced materials. By acting as venture builders—funding, acquiring, and integrating deep-tech startups—these firms can create industrial powerhouses that define the next era of global competition.

Many investors hesitate to back deep-tech and applied sciences due to perceived risks, but the reality is that the highest-multiples in the coming decades will come from these sectors. The biggest companies of the future will not be those that operate in traditional IT services or e-commerce but those that control fundamental technologies.

History provides a clear lesson: the greatest returns have always come from those who bet early on foundational shifts. The investors who backed semiconductor companies in the 1970s, internet firms in the 1990s, and AI in the 2010s saw exponential returns. Today, the next trillion-dollar companies will emerge from quantum computing, aerospace, biotechnology, and AI-driven automation. Indian investors who fail to participate in these sectors will miss out on the wealth creation cycle of the century.

LPs are increasingly demanding investments in high-value, defensible industries rather than crowded markets with minimal differentiation. The Indian investment ecosystem must recognize that applied sciences and deep-tech will drive not just industrial dominance but also the greatest financial returns. By shifting capital allocation strategies, Indian VCs, PEs, and strategic investors can simultaneously accelerate the country’s industrial progress and unlock generational wealth for their stakeholders.

The era of easy returns from software and services is coming to an end. The next wave of economic power will belong to those who control advanced technology, and India must act decisively to claim its stake. This requires Indian investors to move beyond conventional thinking and embrace bold, high-impact investments in deep-tech and applied sciences.

Venture capitalists must fund the next generation of semiconductor, AI, and biotech firms. Private equity players must aggressively acquire foreign deep-tech companies and integrate them into Indian industrial giants. Strategic investors must recognize that controlling fundamental technologies is the only way to remain competitive in a rapidly changing world.

The time for incremental changes is over. Indian investors must act with the speed and aggression of a nation that understands its future depends on owning the technologies that will shape the global order. The wealth creation opportunities in applied sciences are immense, but only those who move first will reap the rewards. If India’s investors fail to act, they will find themselves permanently excluded from the industries that will define the next century. The choice is clear: lead or be left behind.

The Time for Incrementalism is Over

The next five years will determine whether India emerges as a technological superpower or remains dependent on foreign suppliers. The only way to secure its place in the global industrial hierarchy is through a high-speed, high-impact acquisition strategy. The time for incrementalism is over. India must act with the urgency and aggression of a nation that understands its geopolitical future depends on its ability to control the technologies that will shape the 21st century. If Indian investors hesitate, the opportunity will be lost to more ambitious nations, and India will remain a secondary player in the global power structure. The future belongs to those who take it—India must move now.