Hardware startups poised as India’s next billion engine, says CII

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, 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.

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 technology’s power to redefine industries and accelerate innovation. This report highlights the immense potential of India’s engineering hardware startup ecosystem, while underscoring key barriers such as access to digital tools (53%) and affordable design technologies (55%)—challenges rooted in access to advanced simulation and design tools. This is where we enable innovators to turn ideas into real-world impact. Strategic interventions are vital to unlocking the sector’s full potential, and at Synopsys, we are committed to equipping startups with advanced simulation capabilities so they can turn 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 participation from industry leaders, entrepreneurs, and academia, the whitepaper also pinpoints opportunities to speed up growth, draw investments, and build globally competitive hardware startups.