The Confederation of Indian Industry (CII), in collaboration with KPMG and Synopsys Inc., today launched India's first comprehensive Engineering Hardware Industry Startup Ecosystem Report at the ICONN Summit 2025. Designed to accelerate the nation's innovation-led growth and contribute to the Viksit Bharat 2047 vision, the report captures insights from more than 100 engineering and hardware startups across cleantech, defense, electronics, and advanced manufacturing. It provides a deep, data-driven analysis of India's fast-evolving hardware landscape -- projected to reach $296 billion by 2034 -- and outlines a strategic roadmap for startups, investors, policymakers, and industry institutions.
One of the strongest themes emerging from the report is the operational and technological hurdles faced by hardware founders. Startups highlight significant access gaps in digital tools (53%) and affordable digital design technologies (55%), both of which continue to slow down development cycles and scaling efforts. At the same time, the report emphasizes the most critical drivers of growth, including infrastructure availability and technology adoption (52%), a more favorable but still maturing funding landscape (73%), and the availability of skilled talent (67%). Together, these insights paint a holistic picture of an ecosystem on the cusp of rapid transformation -- provided strategic support is deployed at scale.
Commenting on the launch, Mr. C. K. Ranganathan, Co-Chairman, CII National Startup Council, said that the whitepaper represents a pivotal step forward for India's hardware innovation journey. He noted that as the country advances toward the Viksit Bharat@2047 vision, deep-tech and hardware innovation will play a central role in shaping global leadership in manufacturing and technology. With extensive insights and sector-wide research, the publication lays out a strategic path to accelerate growth, strengthen competitiveness, and convert India's engineering hardware startups into a foundational engine of national progress.
The report calls attention to several ecosystem-wide priorities. Startups frequently point to the absence of specialized infrastructure -- such as testing facilities, fabrication labs, and prototyping centers -- as a major operational bottleneck. The report recommends the creation of such facilities through collaborations between public institutions and private stakeholders. On the capital front, while the funding environment for hardware ventures is gradually improving, accessibility remains limited for early-stage founders. Dedicated hardware-focused investment vehicles, government-backed capital pools, and investor matchmaking support are identified as essential enablers for early development and commercialization.
Another major challenge highlighted is the shortage of technically trained professionals across hardware engineering roles. To bridge this gap, the report suggests immersive virtual training programs leveraging mixed-reality devices, as well as deeper collaborations with academic institutions to introduce industry-oriented workshops, internships, and practical training that will prepare the next generation of engineers.
For startups, the report points to the importance of building long-term differentiation by forming strategic partnerships, strengthening digital capabilities, and embedding sustainability into product development. For policymakers, it advocates for stronger academia-industry partnerships, a more adaptive regulatory environment, and reinforced intellectual property protection to encourage innovation and commercialization. For investors and institutions, the report emphasizes the need for patient capital and outcome-driven funding models that support the long gestation cycles typical of deep-tech and hardware ventures.
Speaking about the report, Murali Pullela, Area Sales Director, Synopsys Inc., noted that startups consistently cite access to advanced design and simulation tools as a core growth constraint -- precisely the area where Synopsys aims to empower innovators. He emphasized that unlocking the full potential of India's engineering hardware sector will require strategic interventions, and reaffirmed Synopsys' commitment to supporting startups in translating breakthrough ideas into world-class engineering outcomes.
Overall, the Engineering Hardware Industry Startup Ecosystem Report reflects a joint effort by CII, KPMG, and Synopsys to spark dialogue and catalyze decisive action that will help position India as a global hub for engineering-led innovation. With industry leaders, entrepreneurs, and academia aligned on a shared vision, the report sets the foundation for India's next billion-dollar opportunity in engineering hardware.