India is a global pharmaceutical powerhouse, but it has yet to emerge as a leader in deep science. The gap between talent and investor trust may be driving innovation elsewhere. An X post claims that some of India’s top biotech startups are relocating abroad, raising broader concerns around funding, regulatory challenges, and missed opportunities.
A recent post on X by Dilip Kumar, an investor associated with Rainmatter and Zerodha, has sparked a serious discussion about India’s biotech ecosystem. The post recounts the experience of a founder, trained at Yale, who returned to India to build a biotech venture focused on vaccines for deadly cancers but faced challenges in securing funding and navigating regulatory hurdles.
According to the post, despite having a team of over 100 scientists and credible global backing, the startup is now considering relocating its legal entity abroad to gain better access to international investors.
The concern raised is both simple and significant: Is India falling short in supporting its own deep science innovation?
The numbers driving the concern
Several concerns highlighted in the post appear to align with broader data trends.
India represents nearly 20% of the world’s population but contributes only around 1.5% to global clinical trials, pointing to a wider gap in converting scientific potential into real-world innovation, according to the post.
It also claims that regulatory approvals for clinical trials in India can take years, compared to just weeks in countries such as the US and China. While timelines can vary, experts acknowledge that regulatory delays and complex procedures have historically slowed clinical research in the country.
Funding challenges in deep science
One of the key issues highlighted in the post is the shortage of long-term funding.
The founder referenced in the X post reportedly struggled to raise venture capital, as many investors are reluctant to commit to the 7–10 year timelines typically required for biotech innovation.
This points to a broader challenge: deep science startups need patient capital, while India’s venture ecosystem is largely focused on quicker returns.
As the post notes, this mismatch often pushes startups to seek opportunities overseas, where investors are more willing to back high-risk, long-gestation technologies.
When innovation goes global
The implications extend far beyond a single startup.
As highlighted in the X post, when companies relocate abroad, India risks losing not just businesses, but also intellectual property, economic value, and potential global leadership.
One line from the post stands out: “Indian talent runs the science, but India won’t own the upside.”
It reflects a growing concern that while India contributes significantly to global innovation through its talent, it may not be fully capturing the benefits of that progress.
What must change now
The post outlines two key solutions.
First, it calls for a government-backed health or deep-tech fund with a long-term horizon of 10–15 years to support early-stage scientific innovation and risk.
Second, it highlights the need for faster, more streamlined regulatory processes, including clear approval timelines and parallel review mechanisms.
While these ideas are not new, the urgency to implement them is becoming increasingly evident.