Roadmap for Transforming India into a Leading Quantum Powered Economy

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Transforming India into a leading
Quantum-Powered Economy Transforming India
into a leading
Quantum-Powered Economy Transforming India into a leading
Quantum-Powered Economy Expert Council Members
Dr Anil Prabhakar
Professor, IIT Madras,
NQM Communication
Hub Lead
Dr Jay Gambetta
Director, IBM Research &
IBM Fellow
Dr Kasturi Saha
Associate Professor,
IIT Bombay, NQM Sensing
Hub Lead
Prof. K. VijayRaghavan
Former Principal Scientific
Adviser; Professor, NCBS
Dr Urbashi Sinha
Professor, Raman
Research Institute,
Bengaluru Disclaimer
This roadmap has been prepared by NITI Frontier Tech Hub (FTH) in consultation with experts and stakeholders. The data
used is from secondary sources. Any references to specific organisations, products, services or technologies does not
attribute to endorsement but are only for illustrative purposes. LEAD CONTRIBUTORS:
Mr. Amith Singhee
Director, IBM Research India, and Chief Technology Officer, IBM India & South Asia
Mr. Dhinakaran Vinayagamurthy
Senior Leader, IBM India
Mr. Jaikrishnan Hari
Senior Leader, IBM India
Mr. Sheshasayee Raghunath
Senior Leader, IBM India
Mr. Venkat Subramaniam
Senior Leader, IBM India
Ms. Chandrika Dutt
Director, Avasant
Mr. Dayasindhu N.
Co-founder and Chief Executive Officer, Itihaasa Research and Digital
Dr. Madhu Thalakulam
Faculty Member, IISER, Thiruvananthapuram
Mr. Naganand Doraswamy
Managing Partner and Founder, Ideaspring Capital
OTHER CONTRIBUTORS:
Mr. Anil Kumar
Professor, Indian Institute of Science (IISc), Bengaluru
Mr. Arindam Ghosh
Professor, Indian Institute of Science (IISc), Bengaluru
Mr. Amogh Aspingekar
Leader, LTIMindtree
Mr. Arjun Rao
General Partner, Speciale Invest
Mr. Indranil Mitra
Senior Leader, LTIMindtree
Mr. Kanav Setia
Senior Leader, qBraid
Mr. Manish Singhal
Founding Partner, pi Ventures
Mr. Manjunath Iyer
Senior Leader, Wipro
Mr. Manjunatha Kukkuru
Senior Leader, Infosys
Mr. Pranay Kotasthane
Deputy Director, The Takshashila Institution
Mr. R. P. Singh
Former Scientist, Physical Research Laboratory (PRL)
Mr. Sunil Gupta
Co-founder and Chief Executive Officer, QNu Labs
Mr. Sridhar C. V.
Senior Leader, Tata Consultancy Services (TCS)
Mr. Umakant Rapol
Faculty Member, IISER, Pune
Dr. Venugopal Achanta
Director, CSIR – National Physical Laboratory (NPL), New Delhi As the world enters an era where computing power, communication
security, sensing precision, and material innovations are being
fundamentally redefined, countries that move swiftly will set the terms
of global competitiveness.
For India, the stakes could not be higher. Our aspiration to become a
developed nation by 2047 will depend critically on our ability to harness
deep technologies that multiply productivity, secure our sovereignty,
and open new horizons of opportunity for our citizens. Quantum is
one such transformative force. It holds the potential to revolutionize
healthcare through precision medicine, redefine logistics and energy
optimization, accelerate breakthroughs in new materials, and ensure
our defence and national security remain resilient in an uncertain
geopolitical environment.
The launch of the National Quantum Mission in 2023 was an important
step in the right direction. The Mission has already made commendable
progress in nurturing the ecosystem and building domestic capabilities.
But the road ahead requires us to move with far greater scale, speed,
and ambition if we are to fully seize the opportunity.
NITI Frontier Tech Hub’s roadmap on Transforming India into a Leading
Quantum-Powered Economy , sets out a comprehensive pathway to
realize this vision by 2035. It rightly emphasizes not just the opportunity,
but also the risks of inaction. If we do not invest now, India risks being
a passive consumer of quantum technologies developed elsewhere,
rather than an active shaper of global standards and supply chains.
I am confident that with our unmatched software and engineering
talent, our growing scientific base and strong initiatives such as the
National Quantum Mission, India can emerge among the world’s top
three quantum economies.
This roadmap provides a comprehensive blueprint for policymakers,
industry, academia, and innovators to move boldly-together-toward a
quantum-powered future. Let this be a call to sustained investment,
accelerated collaboration, and strategic risk-taking. The window for
global leadership is open. Let us ensure India claims its rightful place at
the forefront of the quantum revolution.
Dr. V. K Saraswat
Member, NITI Aayog
Foreword Quantum technologies stand at the threshold of becoming one of the
most transformative forces of our time. Their impact will cut across
sectors, redefining healthcare, finance, logistics, materials, energy and
national security. The nations that act decisively today will not only
command the next generation of computing, communication, and
sensing capabilities, but will also shape the very architecture of global
innovation and trust.
For India, the promise of quantum goes far beyond technology. It
represents the opportunity to redefine our place in the world — to lead
in a frontier domain from the outset, rather than catching up after others
have set the rules. Quantum is not just another sector of innovation;
it is the foundation upon which the next era of artificial intelligence,
biotechnology, advanced materials, and secure digital infrastructure will
be built.
India has taken an important first step through the National Quantum
Mission, which has laid a strong foundation for the bigger leap that
today’s scale of global competition demands. Around the world, leading
economies are investing tens of billions of dollars, forging deep public–
private alliances, and building integrated quantum value chains that will
define who owns the future of computing and secure communication. If
India aspires to be among the top three quantum economies by 2035,
we must now expand our ambition, accelerate investment, and build
capabilities at a pace that matches our potential.
The coming five years will decide whether India becomes a global
supplier of quantum technologies — or a consumer dependent on others.
We must combine our unmatched talent base, engineering depth, and
digital public infrastructure to build a quantum-powered India: one that
is trusted globally, competitive economically, and secure strategically.
NITI Aayog’s Frontier Tech Hub’s roadmap, Transforming India into a
Leading Quantum-Powered Economy, outlines this vision. It defines
the imperatives and actionable pathways for realizing it, providing
a comprehensive assessment of where we stand, where we must go,
and what actions are needed to get there. Most importantly, it calls
for collective ownership — from policymakers and researchers to
entrepreneurs and investors.
The Quantum race is already underway. India has the scientific strength,
the entrepreneurial spirit, and the national resolve to win it — but only if
we act together, and act now.
B.V.R. Subrahmanyam
Chief Executive Officer
NITI Aayog
Foreword India’s aspiration to become a global leader in quantum technologies
must rest not only on self-sufficiency, but on strategic competitiveness,
exportability, and global trust. The next decade will decide which
nations shape the architecture of this frontier — from computing and
communication to cryptography and materials.
While hardware and components hold value today, the future belongs
to application software and services — a space that plays directly to
India’s strengths in digital innovation. Our goal is clear: by 2035, India
must be among the top three quantum economies, influencing not just
adoption but the very direction of the global quantum landscape.
The Roadmap to Transform India into a leading Quantum-Powered
Economy by NITI Frontier Tech Hub lays out how. It envisions India as a
net exporter of quantum solutions — from full-stack software platforms
and cryptographic libraries to quantum algorithms for finance, logistics,
and healthcare. It positions India as a trusted quantum partner for the
Global South, providing secure, ethical, and affordable technologies that
solve shared development challenges. It calls for leadership in quantum
diplomacy, advancing global standards and market access through
partnerships with the Quad, EU, ASEAN, and beyond.
India must also build world-class R&D and manufacturing hubs , foster
an India-led Global Quantum Benchmarking Consortium , and become
one of the top three global destinations for quantum and allied
talent through a culture of high “Ease of Doing Science” and seamless
innovation-to-market translation.
The National Quantum Mission provides a strong foundation to leapfrog
from. If we act with the ambition and speed this moment demands India
can shape the global quantum era, not just participate in it.
The cost of inaction is one we cannot afford: dependence on others for
the technologies that will determine our economic strength, strategic
autonomy, and global influence in the years ahead.
I am deeply grateful to the Expert Council for their invaluable guidance
and insight in shaping this roadmap, and to Amit Singhee and the team
at IBM for their exceptional partnership and thought leadership.
Debjani Ghosh
Distinguished Fellow, NITI Aayog
Chief Architect, NITI Frontier Tech Hub
Foreword Executive Summary
Quantum technologies are poised to become one of the most disruptive technology
verticals of the century. Imagine a future where a child in a remote village in
Rajasthan is diagnosed with a rare genetic disorder. While diagnosis through
genomic sequencing is becoming increasingly feasible, designing personalised
treatments remains complex and time-consuming. By 2035, India’s homegrown
quantum computing platforms may help accelerate drug discovery by simulating
molecular interactions between disease-relevant proteins, coded by the child’s
genome, and thousands of therapeutic candidates. Instead of relying solely on
expensive wet-lab screening, researchers could use quantum-enhanced algorithms
to identify promising molecules, simulate their properties, and predict their efficacy,
substantially reducing early-phase discovery timelines. Although clinical validation
will still require years, these advances could pave the way for faster, more accessible
precision medicine, even in rural healthcare settings. The medicine would be delivered
via India’s health digital public infrastructure (DPI) and monitored using quantum-
enhanced diagnostic sensors. The child receives life-saving treatment not in a top-
tier urban hospital, but in a digitally connected primary health center nearby.
This is the kind of leap quantum technologies promise across healthcare, materials,
climate science, finance, and more. The predictive power of quantum computers will
not only accelerate innovation but also democratize it as the hardware matures and
becomes widely available — making precision healthcare, advanced materials, and
secure digital infrastructure accessible to all. They will become the primary technology
differentiator for nations and economies, with transformative impact across a vast
range of applications. By 2035, they could unlock USD 1–2 trillion in new value across
industries such as finance, energy and materials, logistics, pharmaceuticals, and
medical/healthcare products.
1
Quantum technologies leverage the principles of quantum physics for breakthrough
capabilities that go beyond classical systems. This includes four major vectors:
1. Quantum computing, which uses quantum bits or qubits and quantum information,
promises computation that is exponentially faster than classical computing for
certain problems such as simulating nature, optimization, machine learning and
factoring large numbers. At the same time, it could also be able to break RSA
cryptography codes rendering much of the data and communications in today’s
world vulnerable. Quantum advantage
2
over classical computing is expected to
be achieved in specific domains within this decade.
2. Quantum communication, which uses quantum key distribution and
entanglement, enables ultra secure communication, that cannot be intercepted
without detection. As quantum computing threatens to break existing
cryptographic systems, quantum communication networks will become essential
for safeguarding military, government, and critical infrastructure communications
against even the most advanced adversaries. Quantum key distribution (QKD) has
already demonstrated in long-distance scenarios in multiple countries, including
India, China and the US.
1
McKinsey and Company, Quantum Technology Monitor, Jun 2025.
2
Refer Sec 2.2.1 for details. 3. Quantum sensing and metrology , which uses quantum mechanical effects for
highly sensitive measurements, e.g. atomic clocks and magnetometers. Such
sensitive instrumentation will be critical for space, defence and aerospace
applications, among others. Applications of quantum sensing are in active
development and look plausible for strategic applications by 2035.
4. Quantum materials, which leverage quantum mechanical properties for novel
materials and devices, that power and enable the other three vectors.
Globally, quantum remains at an early but rapidly advancing stage—fuelling a new
international technology race. Governments and industry leaders in the US, China,
Europe, and Asia have dramatically ramped up investments, with public funding alone
surging past USD 10 billion annually in recent years. At stake is not just economic
value, but national security, digital sovereignty, and future industrial competitiveness.
Recognizing the magnitude of this opportunity and risk, India launched the National
Quantum Mission (NQM) in April 2023, allocating INR 6,003.65 crore (about USD
730 million) through 2030–31 to “seed, nurture, and scale up” domestic quantum
R&D and position India as a leader in the global quantum ecosystem. While this is
a critical first step, global momentum and the scale of the opportunity demand far
greater ambition and urgency.
An ambitious but achievable vision for India’s Quantum Economy in 2035, would be:
• Incubating at least 10 globally competitive quantum startups, each
surpassing USD 100 million in revenue,
• Capturing over 50% of the value in the global quantum software and
services market by harnessing our software and engineering strength,
• Achieving meaningful, scaled deployment of quantum technologies—
home-grown and global—in strategic sectors
3
across India,
• Commanding critical positions in the global quantum supply chain for
both hardware and software, creating strategic dependencies and value,
and
• Becoming a source of foundational scientific breakthroughs, with world-
class research and intellectual property creation in quantum science and
engineering.
To realize this vision, India must rapidly bridge current gaps through coordinated
national action. Key priorities would include:
1. Expand the Quantum Workforce: Grow the scientific, deep engineering and
professional workforce that is deployment-ready by an order of magnitude in
2-3 years.
2. Catalyse Industry Engagement and Investment: Significantly increase the
awareness among industry leaders and in government sectors of the potential of
quantum technology for their sector and stimulate much higher investment into
quantum technologies in 2-5 years.
3
“strategic sector” in this report refers to defence, intelligence and entities dealing with national security. 3. Accelerate Lab-to-Market Transition: Significantly improve ease of doing
research, of technology validation and of taking technology from lab-to-market,
within 2 years.
4. Grow Fundamental Science and Risk Appetite: Take steps to substantially grow
quality and quantity of fundamental scientific research, while also growing risk
appetite in our funding entities and research institutions in 2-5 years.
5. Make Indian domicile attractive for Indian startups so that >90% deep tech Indian
startups choose to stay domiciled in India.
6. Lead in Global Standard Setting: Engage actively with global standards
bodies and take leadership in international standard setting related to quantum
technologies to ensure that Indian products have access to global markets.
7. Strengthen trade: Ensure strong trade relations and ease of technology export
and import, especially in quantum related technology areas.
Quantum technologies are still in their formative stages globally, offering India a rare
opportunity to shape the trajectory of a foundational technology—unlike previous
technological waves where India often had to play catch-up. This time, India can
position itself as a global leader from the outset. Realizing this potential, however,
will require bold, coordinated, and immediate action: accelerating scientific research,
fostering rapid technology development, scaling up workforce preparation, and
enabling commercialization at pace and scale.
The remainder of this roadmap details a comprehensive vision for India’s quantum
future by 2035. It identifies India’s unique strengths and critical gaps, sets forth
actionable recommendations, and highlights the risks of inaction at this pivotal
moment.
The roadmap is the first version of this perspective. The insights and recommendations
in this roadmap will be periodically reviewed to reflect the evolution of technology as
well as the global contest. This will keep India’s strategy for Quantum Technologies
relevant, resilient and future ready. Index
1. VISION FOR 2035 AND BEYOND1
1.1 Envisioning a Quantum-Powered India 1
1.2 Key Milestones for a Quantum Economy 1
1.3 Global Leadership and Competitiveness 3
2. STATE OF QUANTUM TECHNOLOGY IN 2035 5
2.1 Overview of Quantum Technologies, their Evolution and Adoption in the Economy 5
2.2 Quantum Sub-Sectors 5
2.3 Quantum Technology Stack and Value Chain 9
2.4 Lessons from Global Best Practices 13
2.5 Ethics and Governance in Quantum Era 15
3. QUANTUM TECHNOLOGIES: DISRUPTIONS, IMPACT AND RISKS 17
3.1 Key Disruptions Enabled by Quantum Technologies 17
3.2 Impact and Risks across Sectors 17
4. INDIA’S POSITIONING: CURRENT STATE, STRENGTHS AND BARRIERS 22
4.1 Current State of India’s Quantum Value Chain 22
4.2 Analysis on Key Success Imperatives 24
4.3 Enablers and Unlock needed 28
5. STRATEGIC RECOMMENDATIONS 40
5.1 Prioritization of Top 3-5 Quantum Opportunity Areas 40
5.2 Policy and Investment Strategies 41
6. CONCLUSION 45 1Transforming India into a leading
Quantum-Powered Economy
1. VISION FOR 2035 AND BEYOND
By 2035, the global quantum economy will be defined, with clear front runners and well-established
ecosystems. For India to make a lasting impact and secure a strategic advantage, it must act decisively
over the next decade through coordinated investments, accelerated intellectual property creation,
and bold partnerships spanning academia, industry, and government. This section outlines the key
elements of this Vision in terms of measurable targets and milestones that we must achieve by 2035.
These targets are ambitious and achieving them will need India to break through key barriers and
fast-track progress across multiple fronts. The rest of the roadmap details those barriers—and lays out
concrete recommendations to overcome them and achieve these unlocks and needed acceleration.
1.1 Envisioning a Quantum-Powered India
1.1.1 10+ Quantum Champion Startups with Global Leadership with USD 100M+ Cumulative
Revenue (V1)
India should aim to incubate and scale at least 10 globally competitive quantum startups,
each surpassing USD 100M in cumulative revenue by 2035. While quantum sensing and
communications are currently more mature, India has the potential to drive deep growth
across all four quantum verticals. Breakthroughs in quantum software—leveraging
India’s strengths in information technology (IT) services and algorithmic innovation—are
expected to lead this wave, supported by robust public and private investment.
1.1.2 India Captures Over 50% of the Global Quantum Software and Services Market Value
(V2)
Building on its global dominance in IT services and strong skills in high-performance
computing and natural sciences, India is uniquely positioned to lead in quantum
software and services. With major Indian IT firms already investing in quantum skilling
and research, India can exceed 50% global market share in quantum software, including
algorithm development, middleware, cloud-based quantum platforms, and tools for
hybrid quantum-classical workflows.
1.1.3 Quantum Technology Deployed across at least 3 Major Sectors, including Strategic Domains
(V3)
By 2035, quantum technologies should be deployed at scale in sectors such as defence
(quantum sensing, secure communications), chemicals, petroleum and mining (quantum
simulations, sensing), healthcare (quantum algorithms for drug discovery, diagnostics),
and finance (quantum optimization and cryptography). Strategic adoption by public
sector entities and integration into mission-critical systems should be a national priority.
1.1.4 India Achieves Quantum Atmanirbharta and Controls Critical Points in Global Supply Chains
(V4)
India should aim to be a net exporter of both core and peripheral quantum hardware and
software technologies. This includes contributions to superconducting and photonic
platforms, quantum processors, dilution refrigeration components, control systems,
and post-quantum cryptography libraries. India must also play a key role in standards
development to ensure its technologies are globally interoperable.
1.1.5 India Emerges as a Hub for Foundational Scientific Breakthroughs in Quantum
Technologies (V5)
With growing investment from the National Quantum Mission and global collaborations,
India should produce scientific research at par with top global institutions. By 2035,
Indian researchers should regularly publish in high-impact journals (e.g., Nature,
Science, PRL) and contribute fundamentally to the understanding and advancement
of quantum science and engineering. 2Transforming India into a leading
Quantum-Powered Economy
1.2 Key Milestones for a Quantum Economy
It is important for India to establish granular milestones over the next 10 years and stay on
track to achieve the ambitious, but critical, vision set in the previous section. A set of such
milestones are laid out below in two phases: 2025-2030 and 2030-2035. These milestones
will create the foundation for achieving the Vision for 2035.
Phase 1: 2025–2030 | Building Scale and Market Momentum
• Deliver on National Quantum Mission Milestones as per plan
»Complete establishment of quantum technology hubs and testbeds.
»Operationalize mission-mode projects across four verticals (Computing, Sensing,
Communications, Materials).
»Fund and incubate 50+ startups and research projects with commercialisation potential.
»At least 5 startups reach global markets and establish globally leading revenue streams.
• Develop peripherals manufacturing of global standards by Indian private sector.
»Reduce dependency on import for basic components like BNC cable, wires, optics and
optomechanics along with some custom chips.
• Accelerate Industry Adoption of Quantum Technologies
»Demonstrate quantum advantage in India for useful applications when compared to
classical algorithms, even before fault tolerant quantum computing becomes real.
»Launch 25+ industry-focused quantum pilot projects across sectors such as banking,
pharma, energy, chemicals, logistics, and manufacturing.
»Incentivize co-development programs between startups and large enterprises to
validate quantum solutions.
»Establish 3–5 sectoral sandboxes to demonstrate quantum advantage in practical
applications.
• Seed and Scale the Indian Quantum Software Industry
»Create a national accelerator for quantum software startups.
»Enable commercial licensing of algorithms and SaaS quantum tools for domestic and
global markets.
»Train 100,000+ developers through national skilling programs in software stacks such
as Qiskit, Cirq, and Indian-developed stacks.
• Enable Strategic Sector Adoption of Quantum Technologies
»Deploy quantum sensors, encryption-based communication networks, and quantum
algorithms and tools in defence, space, oil and gas, energy and public infrastructure.
»Mandate quantum-readiness planning in public sector innovation roadmaps.
• Conduct technology integration trials in DRDO, ISRO, HAL, Indian Railways, and
ONGC.
• Develop and Pilot Quantum Resilient Technologies
»Establish regulatory framework and guidelines for the adoption of quantum resilient
encryption technologies both for public and private sectors, to drive the migration to
quantum resilient data and communication architectures. 3Transforming India into a leading
Quantum-Powered Economy
»Launch national testbeds and trials for post-quantum cryptography (PQC).
»Deploy PQC in government IT systems and critical infrastructure.
»Co-create global PQC benchmarks and export-grade standards with industry and
academia.
Phase 2: 2030–2035 | Achieving Global Competitiveness and Strategic Leadership
• Position India Among the Top 3 Nations in Quantum Readiness
»Maintain and grow a top-tier talent pool across academia, startups, and enterprises
»Top 3 ranking in top-tier scientific publications.
»Enable annual patent filings in quantum to cross 1,000+ across domains.
»Lead international quantum standards bodies and consortia.
• Grow a Globally Competitive Quantum Startup Ecosystem
»Support 10+ startups to reach USD 100M+ in cumulative revenue.
»Anchor quantum unicorns with both product and platform intellectual property (IP) in
India.
»Establish quantum venture funds and initial public offering (IPO) pipelines.
• Own Strategic Segments of Global Quantum Supply Chain
»Achieve dominance in at least 3–4 quantum stack components (e.g., cryo-electronics,
photonic qubits, error correction chips, quantum control stacks, PQC stacks).
»Export India-made quantum components and subsystems to global platforms.
»Build a quantum export corridor with trusted partner countries.
• Achieve Full-Scale Strategic Sector Integration
»Set a target date and replace legacy systems with quantum resilient platforms in
national security, space, and critical infrastructure.
»Use quantum simulations and optimizations to guide national climate, health, and
resource policies.
»Run high-impact grand challenges to solve persistent national problems using quantum
advantage.
• Establish India as a Global Quantum IP and Deployment Hub
»Host global conferences, standard bodies, and inter-governmental tech partnerships.
»License Indian quantum software and hardware to 30+ countries.
»Lead collaborative moonshots on quantum climate models, medicine, and supply
chains.
1.3 Global Leadership and Competitiveness
India’s aspiration to become a global leader in quantum technologies must be built not only
on self-sufficiency, but on strategic competitiveness, exportability, and global trust. While
equipment, components and hardware have higher market value currently, in the coming
decade, application software and services are expected to have greater value, which plays 4Transforming India into a leading
Quantum-Powered Economy
directly to India’s strengths.
4
The next decade is not just about building capabilities at home
but about influencing the direction of the global quantum landscape. India must be a top 3
quantum economy.
1.3.1 India as a Net Exporter of Quantum Solutions
By 2035, Indian companies and startups should be exporting full-stack quantum software
platforms, embedded cryptographic libraries, and components of scalable hardware
to global markets. This includes custom-designed quantum algorithms for sectors like
finance, logistics, climate modelling, and healthcare that are deployable worldwide.
1.3.2 Trusted Quantum Partner for the Global South
India must emerge as the trusted provider of secure, ethical, and cost-effective quantum
technologies for emerging economies filling the need for affordable, adaptable
solutions that address shared challenges such as water security, crop resilience, and
disaster forecasting.
1.3.3 Quantum Diplomacy and Market Access
India should lead with quantum diplomacy forming bilateral and multilateral technology
partnerships with the Quad, EU, African Union, ASEAN, and other regions to establish
interoperable standards, ethical frameworks, and joint innovation programs that ensure
Indian quantum products gain seamless global market access. A recent example from
the global setting is India’s alliance with the CERN-based Open Quantum Initiative of the
Geneva Science and Diplomacy Anticipator. Several advanced economies have already
implemented export controls on critical quantum technologies and components; India
has a unique opportunity to position itself as a champion of equitable access and
trusted global trade. By advocating for balanced frameworks that support both security
and innovation, India can help shape international norms that enable responsible
technology sharing, especially with countries in the Global South.
1.3.4 Home to Global Quantum R&D and Manufacturing Hubs
India must host globally recognized quantum R&D zones and advanced manufacturing
facilities, like Amaravati’s Quantum Valley and other emerging tech clusters and create
new ones across the country. These should offer open infrastructure to international
partners while safeguarding national interests.
1.3.5 India-led Global Quantum Benchmarking Consortium
Establish an India-anchored international consortium for benchmarking quantum
performance and reliability developing fair, transparent, and globally recognized
metrics for quantum processors, cryptography, and algorithms.
1.3.6 India in top 3 preferred destinations for top global quantum and allied talent
Establish high Ease of Doing Science, enable competitive remuneration for quantum
related careers, and strong translation mechanisms with quantum innovations being
applied in industry, to engage and attract strong global talent to India. This should
cover not just talent in the quantum technologies domain but also in allied areas such
as electronics, hardware engineering, optics, microwave, etc. that are required for
integrated R&D of quantum technologies.
4
McKinsey and Company, Quantum Technology Monitor, Jun 2025. 5Transforming India into a leading
Quantum-Powered Economy
2. STATE OF QUANTUM TECHNOLOGY IN 2035
2.1 Overview of quantum technologies, their evolution and adoption in the economy
It was 1925 when key scientific discoveries led to the genesis of modern quantum
mechanics – the theory that describes behaviour of matter and matter-energy interaction
at atomic scale. United Nations has proclaimed 2025, the 100
th
year of modern
quantum mechanics, as the International Year of Quantum Science and Technology
5

to celebrate the impact of quantum science driven technological progress of the last
century, and the impact it has had on the world. That wave of scientific revolution led to
significant technological developments including:
(i) Quantum photonics that revolutionized medical imaging and diagnostics,
(ii) Quantum chemistry that led to development of new vaccines and drugs,
(iii) Quantum mechanics that was at the root of semiconductors that underpin modern
economy,
(iv) Quantum physics that lead to invention of LASERs, LEDs and the like, and
(v) Quantum mechanics that underpins modern GPS systems.
While the progress has been truly fundamental and pathbreaking over the last century,
the technologies developed have merely used deeper understanding of matter and its
interactions in developing the new technologies. We are at the cusp of a second wave
of developments where technologies will use quantum phenomena – like superposition,
entanglement, Heisenberg’s uncertainty principle, no cloning theorem and tunneling
– in both development and use of these technologies. This second wave is expected to
have a similar revolutionary impact as the first one, as this is going to be built on top of
phenomena that are fundamentally different from any other used so far. These modern
quantum technologies are broadly classified into 4 categories:
(i) Quantum computing – use quantum phenomena to perform calculations better, faster
or more cost and/or energy efficiently,
(ii) Quantum communication – use quantum phenomena for secure communications,
(iii) Quantum sensing – use quantum phenomena to have deeper understanding of the
world, and apply it to varied applications, and
(iv) Quantum materials – study material properties using quantum principles and help
develop novel ones.
2.2 Quantum Sub-Sectors
2.2.1 Quantum Computing
Quantum advantage would have happened. Quantum advantage is said to be
achieved when:
“[..] information processing task on quantum hardware that satisfies two criteria: (i)
the correctness of the output can be rigourously validated, and (ii) it is performed with
a quantum separation that demonstrably offers superior efficiency, cost-effectiveness,
or accuracy than what is attainable with classical computation alone.”
6
5
https://quantum2025.org
6
O.Lanes et. al., “A framework for quantum advantage”, arXiv:2506.20658. 6Transforming India into a leading
Quantum-Powered Economy
It is to be noted that the above calculations could include classical computing as well.
In other words, we are comparing classical + quantum compute vis-à-vis classical
compute alone; it is the presence of quantum computing in the mix that demonstrably
leads to the above differentiation.
Quantum advantage is expected by 2026-28. This is likely to be in abstract realm at
first expanding into business use-cases in due course. It is expected that quantum value
unlock will happen in this timeframe as well. This requires significant improvement in
maturity of both quantum hardware and software towards general availability.
Quantum computing scaled to 100K quantum bits (qubits) regime. There are many
quantum hardware roadmaps being announced by different players in the market
such as IBM, Google and others. We can infer from them that the next decade will see
qubits to scale to 100K regime with quantum processing units (QPUs) becoming part
of hyperscalar deployments.
Early quantum fault tolerance deployed. Many hardware original equipment
manufacturers (OEMs) have indicated that error correction is likely to be achieved
before 2030. This means that by 2035 error correction will be deployed and scaling
of logical qubits will be underway. It is likely that there will be systems with over 200
logical qubits available for use.
Era of quantum-centric computing underway. Novel algorithms emerging in quantum
computing indicate that quantum and high-performance computing (HPC) will have
close inter-play in unlocking quantum value. Quantum-HPC interplay works at two
levels: (i) quantum algorithms requiring HPC capability for its performance, and (ii)
abstract quantum algorithms at workflow level that needs to optimize the use of
resources based on cost/performance/quality and tradeoffs therein.
2.2.2 Quantum Materials
Development of efficient single-photon sources and detectors, and entangled
photon sources. The efficiency of single-photon sources and detectors is likely to
see significant improvement in the coming decade. The quality of entangled photon
sources is expected to significantly increase as well.
Materials for solid-state quantum computing and quantum metrology. High-quality
two-dimensional materials are the platform for the realization of some of the most
promising quantum bit and quantum metrology architecture. The main systems
which are being globally pursued, while nationally no presence, are high quality
semiconducting quantum well heterostructures such as Si/SiGe and GaAs/AlGaAs.
Both systems are the platform to realize quantum hall resistance standards, quantum
electrical sensing and quantum charge pumping and counting circuits. Figure 1 shows
roadmap, from short term to long term, more broadly for materials for quantum
landscape. 7Transforming India into a leading
Quantum-Powered Economy
Figure 1: Materials for Quantum - roadmap.
7
Materials for neuromorphic computing. Quantum materials offer a promising
foundation for this innovation. Their exceptional electronic and magnetic characteristics
enable the creation of energy-efficient hardware capable of managing vast amounts
of information. For instance, materials such as transition metal oxides and 2D van
der Waals structures display strong correlations and non-linear responses, which are
crucial for mimicking neural processes like adaptive learning and memory (Figure 1).
These advancements pave the way for real-time data classification and sophisticated
applications in artificial intelligence and machine learning.
Materials for energy harvesting and storage. Quantum materials like perovskite
compounds are revolutionizing solar energy by enabling efficient sunlight-to-
electricity conversion. In energy storage, materials such as topological insulators
and graphene enhance batteries and supercapacitors with faster energy release and
greater charge storage, vital for renewable systems. Tin oxide quantum dots promise
high stability, cost-effectiveness, and superior energy capacity in solar cells and
batteries. Additionally, composites like titanium dioxide quantum dots on graphene
improve lithium and sodium storage, offering higher capacity and cycle stability for
advanced batteries. These innovations drive sustainable energy solutions, making
renewable systems more efficient and scalable.
2.2.3 Quantum Communication
Satellite-based secure quantum communications of over 2000 km. Satellited based
quantum communication will be increasingly mainstream with ranges of over 2000
km being available. A lot of trials are expected to be performed over different ranges,
including field testing. It is highly likely that it will be deployed in strategic sector.
7
Banerjee et. Al., “Materials for Quantum Technologies: a Roadmap for Spin and Topology”, arXiv:2406.07720. 8Transforming India into a leading
Quantum-Powered Economy
Inter-city quantum key distribution over 2000 km. Intercity quantum key distribution
is likely to expand in scale to over 2000 km. Wider adoption and deployment of this
technology is likely starting from key strategic and government sectors, and perhaps
in some civilian space as well.
Multi-mode quantum networks with quantum memories towards a global quantum
internet. This will be an important development especially quantum memories. This
will be an important element in scaling the quantum network and to make it broadly
available. Quantum memory technologies would have matured and likely to be
deployed to support multi-mode quantum network.
2.2.4 Quantum Sensing
High sensitivity magnetometers in atomic systems for precision timing,
communications and navigation. Different magnetometers are undergoing field
testing now and will expand in the coming years. More application use-cases are likely
to emerge in the next decade. It is likely that these technologies will be deployed and
would have made inroads, especially into strategic sectors.
Quantum imagers. This field will see many proof-of-concepts (PoCs) being developed
in the next 5 years. It will then undergo field testing, and some very well-defined use-
cases may see deployment as well.
Gravimeters. These are already in use in many sectors like mineral or oil detection.
These technologies will be made more portable, making it easy to use. This change is
likely to unlock many more applications.
Atomic clock. Atomic clocks are seeing significant transformations and
are moving towards optical frequency technology from microwave one.
8
This greatly enhances precision and stability. Continued miniaturisation and integration
with advanced electronics is set to continue through the coming decade. This will
lead to applications like networked battlefield capabilities, global navigation satellite
system resilience, 6G networks, satellite navigation, deep space exploration amongst
others.
Inertial navigation. This sector has significant strategic importance and attention
being paid to the development this technology. A lot of progress is expected towards
deployment of this technology starting in strategic sector and then to other possible
applications in civilian space.
2.2.5 Convergence with other cutting-edge technologies
Quantum computing and High-Performance Computing (HPC). Novel quantum
algorithms leverage the power of HPC especially in applications using quantum
simulations. This interplay is likely to continue both at algorithmic as well as workflow
levels.
Quantum computing and Artificial Intelligence (AI). AI is making its presence felt
in two ways: (i) AI being used to implement quantum better; examples of which
is efficient transpilation such that the circuit depth and the use of 2-qubit gates is
reduced, and (ii) quantum machine learning targeting AI problems like classification,
prediction, anomaly detection amongst others, which can make AI systems even more
capable of discerning complex patterns in data.
8
https://www.futuremarketinsights.com/reports/atomic-clock-market 9Transforming India into a leading
Quantum-Powered Economy
Quantum sensing and computing in applications. As higher quality sensors and
nanobots are deployed in applications such as health diagnostics, more sophisticated
dataset will emerge requiring novel quantum algorithms to unearth patterns in the
dataset. Thus, a new class of solutions are likely to emerge wherein quantum sensors
are used at a lower level to generate data at a finer resolution, and quantum algorithms
being used at application level to reveal insights.
Quantum communications and computing. This is perhaps further out in the horizon
where in different quantum computing modalities need to be connected and/or
need to connect logical quantum computers in different hyperscalar centers that are
geographically separated. This will be the emergence of quantum computing network.
Quantum materials and computing. New materials are being explored as candidate for
topological quantum computing, photonic quantum computing using semiconductor
materials, novel spin qubits etc. Quantum materials would also be needed to solve
the problem of connecting different quantum computing modalities or in the era of
quantum internet.
2.3 Quantum Technology Stack and Value Chain
The Quantum Stack: The quantum stack refers to an end-to-end view of quantum
technology (Figure 2). There are multiple abstract layers in the stack:
2.3.1 Quantum hardware: This is the layer that exhibits quantum properties. At the bottom
are the materials; these are used to create quantum devices like qubits, transduces,
sensors and entangled sources. Materials and quantum devices together form the
hardware layer in the stack.
2.3.2 Non-quantum hardware and software: This layer is immediately on top of the quantum
hardware and parts in this layer supports quantum properties of quantum hardware.
These are in and of itself non-quantum or classical hardware or software.
(i) Environments: cryogenics, compressors, UHV chambers, thermometry – that
immediately surround the quantum hardware,
(ii) Components: key components – cryoRF, SNSPDs, cryoLNAs, connectors and
wiring, I/O, detector arrays – that are either embedded or connects the elements
of the environment,
(iii) Control and correction: this layer – cryoCMOS, SFQ, control electronics, stabilized
lasers – controls the quantum hardware including its stability and correctness,
(iv) Software: this is the first software or firmware layer that provides programmability
and control of hardware from higher layers, and
(v) Network: this layer includes protocols, specialty cladding fibre that bring in the
first physical networking infrastructure.
2.3.3 Providers: With the previous layers, an abstraction for quantum hardware is in place.
This layer focusses on higher levels of abstraction:
(i) Quantum products: this layer defines the products like computing, secure
communications and sensing network,
(ii) Cloud services: natural progression on top of products level, to position in the
context of a cloud so that it is accessible to end-users, and 10Transforming India into a leading
Quantum-Powered Economy
(iii) Algorithms: once the quantum products are available on cloud, then the next
aspect of the problem is to consider is to how to use is efficiently and effectively
in application context.
Figure 2: The Quantum Stack.
9
2.3.4 End users: This layer refers to ultimate consumers of the quantum technologies.
(i) Applications: with algorithms in place, the next level of abstraction is to explore
the use-cases like logistics, cybersecurity and materials discovery, and
(ii) Industries: on top of the applications comes the industries – telecom, aerospace,
pharmaceuticals, defence, automotive – who will consume the use-cases
developed.
The physical infrastructure layers, that include quantum hardware and non-quantum
hardware, is cumulatively referred to as quantum supply chain. This distinction is
important as the supply chain has geographical dependence while other layers in the
stack can technically be managed by policy frameworks focusing on capacity and
capability development.
Table 1 maps some of the Indian organizations that are developing capabilities in
different layers of the stack. Most of these are startups with different levels of maturity
and funding. There are quite a few active startups across the layers, however, many
of these are early-stage startups, and there are segments where there are gaps. The
only meaningful investment from industry is from the strategic sector, in this case the
Indian Navy. The National Quantum Mission provides support across many of these
layers, and the Innovation for Defence Excellence (IDeX) scheme, while not specific
to quantum technologies, provides some support in the end user and provider layers,
where the target industry is the defence sector.
9
“Quantum Economy Blueprint – Insight Report”, World Economic Forum, Jan 2024. 11Transforming India into a leading
Quantum-Powered Economy
LayerSegmentExample companies/orgs.
End users
IndustriesIndian Navy
ApplicationsAccelequant
Providers
AlgorithmsAcclequant, QKrishi, BQP
Cloud services
Quantum products QNu Labs, QPiAI, QuBeats
Non-quantum
hardware and
software
Network
SoftwareQulabs
Control and correction Qnulabs
ComponentsDimira, Prenishq, QuPrayog
Environments
Quantum hardware
Quantum devices Quanastra, DeepLase, QpiAI
Quantum materials Pristine Diamonds, Quan2D
Table 1: Indian quantum stack and representative organizations (not exhaustive) in each layer and overlay
of supporting national initiatives.
The Quantum Value Chain. It is vital to understand the overall supply chain for the
quantum ecosystem as it provides a framework to understand the strengths and
weakness. Figure 3 shows various stakeholders in the quantum ecosystem and their
interrelations. The top and bottom portion are academic and regulatory ecosystem
while the middle box is the actual supply-chain. Top part has stakeholders whose role
is to provide new insight, scientific inquiry and education; it also has component that
interfaces the academic ecosystem with industrial sector. Bottom portion interfaces
industry with funding, collaboration opportunities within the industry and government
ecosystem as well as provide regulatory environment covering commercial and IP
management. The arrows in the value chain indicates sequencing or dependency. 12Transforming India into a leading
Quantum-Powered Economy
Figure 3: The Quantum Value Chain.
10
The supply chain portion (middle box) of the value chain is the actual aspects of technology
development. It is to be read from left to right wherein materials are the primary input, using
which components are built, followed by systems, software and finally application use-cases.
The left most vertical i.e. Technology Provider, is common across all quantum verticals. In
the subsequent steps, are organized in terms of computing, communications and sensing
horizontals. Other stakeholders in this middle box include IT system integrators, full stack
integrated systems providers and quantum security.
10
Adapted from: The Quantum Value Chain Report, QETCI, Dec 2023. 13Transforming India into a leading
Quantum-Powered Economy
2.4 Lessons from Global Best Practices
2.4.1 The importance of credible industry consortium like the Quantum Economic
Development Consortium (QED-C)
The National Quantum Strategy
11
of the US has 3 components: (i) getting the science
right, (ii) enhancing competitiveness and (iii) enabling people. The objective of the
second component is to: “enhance competitiveness by accelerating technology
development toward useful economic and mission application of QIS and working
with international partners, while also protecting national security.”
12
The QED-C
13
is an
industry led consortium that was created to enable and grow quantum industry in the
United States. The QED-C was established with support from NIST as part of federal
strategy as called out by National Quantum Initiative Act of 2018.
The QED-C as part of its mission “brings government agencies together with industry
to help accelerate the use of quantum technologies to address the needs of the
government, including in health, defence, finance, energy and transportation.”
14
It also
contributes significantly by bringing institutions such as NIST and industry players on
a single platform to help focus on developing standards. These standards are then
adopted by industry, and since US industry is at the cutting edge, they invariably
become global standards. This is particularly useful in fostering a robust supply chain
and physical infrastructure needed for quantum technologies. While they also provide
a perspective on workforce development more broadly, their focus presently is on
skills needed for developing a robust quantum supply chain.
2.4.2 Inter-university Microelectronics Centre (IMEC) ecosystem
15,16
IMEC was established in 1984 as a non-profit spin-off of KU Leuven with an initial
investment of Euro 62 million by local Flanders government, with the goal of becoming
a R&D major in microelectronics, and to become a leader in chip-based revolution at
that time.
Power devolution and local government’s autonomy: Reforms in Belgium in 70s and
80s empowered local government to be autonomous in areas including economy,
innovation and international trade. This led to close collaboration of universities,
industry and research institutes leading to technology innovation and technology-
based business driving growth. This devolution of power also led to tech transfer
activities allowing universities to own IP and to participate in seed funds.
IMEC Industrial Affiliation Programme (IIAP): Established in 1991, this program has
been pivotal in developing a new business model through joint use of development
costs, risks, development capabilities and IPs. Based on this scheme, any new project
approved by IMEC – even those involving multiple industries, IMEC would support
by sharing not only its knowhow but also its IP would become background IP for
the project. In this model, the collaborators can have joint IP and add to the pool of
common IP, but also has structural pathways to create exclusive IPs as well.
2.4.3 Synergistic academic, industrial and ecosystem policies in Japan
Japan is an industrial powerhouse which has leveraged R&D to drive growth since
World War II. It has deep roots in semiconductors, robotics and automotive engineering
which forms the core of its export-driven economy. Japan being highly industrialised,
11
https://www.quantum.gov/strategy/
12
https://www.quantum.gov/competitiveness/
13
https://quantumconsortium.org
14
https://thequantuminsider.com/2025/04/04/qed-c-executive-director-celia-merzbacher-named-a-2025-fed-100-winner/
15
https://tech-innovation-europe-magic-left.fdiintelligence.com
16
Odake and Tokumaru, “Model of Innovation System in Public Research Institutions: The cases of IMEC from Belgium and
ITRI from Taiwan”, PICMET 2012. 14Transforming India into a leading
Quantum-Powered Economy
and vertically integrated economy works in its favour when a new technology like
quantum computing emerges. That said, it being highly successful in adopting that
technology and being leader in some aspects of it, requires more closer scrutiny of
how it incentivises the ecosystem to develop and to succeed.
17
2.4.4 Drivers and enablers
(i) Transformation in manufacturing and supply-chain: With manufacturing and
supply-chain becoming highly complex, and with Japan being an incumbent
leader in this space, there is a market need to solve this problem efficiently. These
problems are good use-cases for quantum computing.
(ii) Japan’s challenges in healthcare: Japan is ageing, and workforce is shrinking.
This means that there is natural interest in problems such as drug discovery,
improving diagnostics and to improving efficiency; at the same time, hospitals,
pharmaceuticals and medical device manufacturing sectors are looking to
advance its technology and solutions to meet the market needs. Again, quantum
computing seems to intersect with this space positively.
(iii) Government a strong enabler: The government follows a multifaceted approach
wherein multiple ministries collaborate and co-ordinate their efforts to sponsor
research, aid commercialisation and help de-risk investments. They also have
government backed consortiums that provide collaboration platforms for private
sector, research labs and academia.
2.4.5 Policies and initiatives
(i) National Strategic Roadmap and careful planning tracking: Japan has been
one of the early adopters of quantum computing since 2018-19 and has been
developing and refining its national strategy since 2020.
18
They encouraged their
existing manufacturers to expand into developing components for quantum
industry, created a Quantum Hardware Test Center, enabling the components
to be of global standard. Their national strategy now has evolved and has 3
phases – (i) foundational research, (ii) pilot implementation and (iii) broader
commercialization. Additionally, their strategy is combined with very careful
planning and deep review. Reviews are used not only to track progress but also
to identify gaps where there could be targeted intervention.
(ii) Significant Government funding: Many Government bodies run specialised grant
programs for quantum computing. Key aspect of this funding is that it not only
supports domestic but also international ventures, provided they are of cutting
edge or have commercial viability.
(iii) Supportive environment for startups: Many seed funds and incubator programs
have been created and hosted in academia or in innovation hubs. They provide
pre-seed funding along with business mentorship for startups to escape the so
called “valley of death.”
(iv) Favourable tax regime: Besides providing tax deductions for quantum companies,
some local governments also provide subsidies or reduced facility costs for
establishing research and manufacturing facilities.
(v) Balanced regulatory environment: The regulatory environment balances the
innovation needs to move fast with societal need to be of high-quality. This is
17
https://onestepbeyond.co.jp/blogs/japans-quantum-computing-race-how-global-tech-firms-can-get-involved/
18
https://www.ibm.com/quantum/blog/japanese-quantum-ecosystem 15Transforming India into a leading
Quantum-Powered Economy
important and a difficult balance to find. Since the regulation also emphasises
on quality, the Japanese startups and enterprises that meet these standards
invariably meet other global standards. This enhances trust amongst potential
clients globally.
(vi) Robust IP protection and legal environment: The system has an IP protection
framework and the legal system that is strong and reliable, and conflicts are
managed in a time-bound and efficient manner.
2.5 Ethics and governance in quantum era
Quantum computing is a fundamentally new model of compute that leverages the principle
of quantum physics. The impact of quantum computing on society at large is still an open
question. However, the technology is evolving quite rapidly and is at the threshold of
quantum advantage. It is also a technology that will be working in consonance with existing
classical computing resources. Given that there are ethical and governance challenges even
with classical computing, quantum computing can possibly bring about new challenges
and/or accentuate existing challenges, and therefore merits deeper consideration.
2.5.1 Following are some of the ethical and governance
19,20,21
related questions that merits
attention:
(i) Standards for benchmarking and reproducibility of results: Quantum computing
is still evolving benchmarks and standards in measuring the capabilities of
its hardware and algorithms; this sometimes leads to mis-placed claims that
undermines society’s trust in the technology.
(ii) Potential to accentuate “digital” divide: There is a “digital” divide in the world that
we inhabit today, within nations and amongst nations; quantum technologies at
this point is expensive and is not affordable to large sections of populations; this
can increase the gap between haves and have-nots, making it harder to bridge
the divide. In quantum, the divide is more acute amongst nations at this time of
development as only a few nation states and corporations have the wherewithal
to develop the technology.
(iii) Data encoding and explainability: Quantum capabilities like superposition and
entanglement provides novel ways to encode data, which can lead to ethical
challenges beyond what is considered in AI ethics in classical data. Given the
fundamentally probabilistic nature of quantum computing, there is an added
complexity to already challenging problem of explainability in (quantum-
powered) machine learning models.
(iv) Quantum data: Quantum sensing technologies are advancing at a rapid pace,
and it is possible that there could be a time when the output from sensing could
be quantum data. For instance, advanced sensors/nanobots could generate
quantum signals from a patient’s internal organs like heart as part of diagnosis.
It is also possible that quantum memory could be realised in the coming years.
While principles like no-cloning theorem ensures that the data cannot be copied,
the data can however have longer lifetime due to quantum memory. Given this,
would data governance principles require a relook in the context of quantum
data?
19
L.M. Possati, Ethics of Quantum Computing: an Outline, Philos. Technol. 36, 48 (2023).
20
https://quantumzeitgeist.com/the-ethics-of-quantum-computing-considerations-and-challenges/
21
World Economic Forum, Quantum Computing Governance Principles, Jan 2022. 16Transforming India into a leading
Quantum-Powered Economy
(v) Patents to basic scientific discovery: It is likely that quantum computing will
lead to new discoveries such as useful molecular structures, protein interactions
and microscopic behaviour in complex materials. Patenting such fundamental
knowledge can lead to further privatization of knowledge.
(vi) Lack of diversity in quantum workforce: An aspect of “digital” divide is lack of
opportunity for sections of society that is marginalized or less privileged, leading
to lack of diversity in quantum workforce. Proactive measures to ensure rural
access to benefits from quantum technologies and encrypted communications,
and support for quantum education in Tier II/ III cities, will be important.
While quantum computing is still evolving, it is doing so at a rapid pace. It is important
that aspects of ethics and governance principles are considered now rather than after the
technology is deployed at scale. It is also important that all stakeholders – government,
industry, academia, non-governmental organisations, and society at large – participate in
this important conversation to ensure common good wins while risks are mitigated. A
national taskforce or regulatory framework similar to AI ethics initiatives, which could pre-
emptively guide on the above aspects will be important. 17Transforming India into a leading
Quantum-Powered Economy
3. QUANTUM TECHNOLOGIES: DISRUPTIONS, IMPACT AND RISKS
3.1 Key disruptions enabled by quantum technologies
Quantum technologies are poised to drive major transformations across various strategic
sectors, with particularly strong implications for India’s economy, security, and technological
landscape. Below are the core areas where quantum technology is expected to generate
significant disruption and opportunity:
3.1.1 Strategic sector applications
(i) Defence and Intelligence: Defence and intelligence sectors will experience the
earliest and most profound impact from quantum technologies. Innovations
include GPS-free quantum sensing for submarines, post-quantum and hybrid
quantum key distribution (QKD) for secure communications, and advanced
quantum-based computational models for optimization and computational
fluid dynamics (CFD). These advances are critical to enhancing India’s strategic
security and promoting technological sovereignty in sensitive areas.
3.1.2 New applications across industries
(i) Healthcare and Life Sciences: Combining quantum sensing and computing can
revolutionize medical diagnostics, drug discovery, genomics, and personalized
medicine.
(ii) Logistics and Supply Chains: Quantum optimization can streamline complex
logistics, leading to cost savings and efficiency improvements.
(iii) Fintech: Enhanced security and computational power can drive innovation in
financial modeling, fraud detection, and data encryption.
(iv) Chemicals, Petroleum and Mining: Quantum solutions enable better resource
exploration, material discovery, and process optimization.
3.1.3  Peripherals and global supply chain integration
(i) India must aspire to be a net exporter of quantum technologies through focused
investment and favorable geopolitics, becoming an integral part of the global
quantum supply chain
3.1.4 Quantum IT and software services
(i) Service Export Opportunities: As the global quantum economy expands rapidly
in the coming decade, demand for quantum software and quantum-enabled
IT services will surge. India, with its robust IT services and software sector, is
uniquely qualified to capture a substantial share of the global quantum services
market.
3.1.5 Creation of high-value Jobs
(i) Quantum technologies demand highly specialized skills in both manufacturing
and algorithmic domains. Advancements in this domain will generate roles across
research, manufacturing, and software—resulting in the creation of high-value,
future-proof jobs that are essential for India’s economic ascent.
3.2 Impact and risks across sectors
Quantum technologies’ impact is broad and wide – from citizens to government. For citizens,
mainstreaming of quantum technologies is likely to transform everyday life by reshaping 18Transforming India into a leading
Quantum-Powered Economy
education, healthcare, and job creation. This will fuel a surge of innovations leading to high-
value jobs across research, manufacturing, software and services. However, the challenges
to cybersecurity and data privacy increases as well as managing workforce transition in the
context of quantum-enabled AI based automation-driven job displacement; these can be
especially sensitive in growing middle-income country like India.
Quantum technologies can significantly augment governance by enhancing national security,
economic resilience, and public service delivery. For strategic sectors—including defence,
cybersecurity, and critical infrastructure—quantum capabilities can unlock offensive and
defensive tools previously beyond reach. Further, they can enhance sustainable agriculture,
optimise renewable energy integration, strengthen nationwide systems for emergency
preparedness, transport planning, and fraud detection in welfare programs. These are
possible only if policymakers have deeper understanding of these emerging technologies
in order to craft relevant, forward-looking regulations and strategies; without this, India
risks lagging in setting standards, safeguarding public interests, and leveraging quantum for
developmental goals.
3.2.1 Opportunities
Quantum technologies present a generational opportunity for Indian industry
to leapfrog into high-value, innovation-driven growth. As a greenfield sector,
quantum offers India the chance to position itself as a global technology and
knowledge economy, unlocking value across manufacturing, healthcare, logistics,
finance, energy, and tech services. Early adoption in financial services, chemicals,
pharma, and scientific research in the next 5 years—expanding to mainstream
adoption 2035—can drive major productivity and competitiveness gains.
Figure 4: The value opportunity from Quantum Computing across sectors.
22
In the Indian context, quantum technologies are expected to have significant
impact across multiple sectors including agriculture, financial, healthcare,
manufacturing and logistics and transportation (see Figure 5).
22
McKinsey and Company, Quantum Technology Monitor, Apr 2024. 19Transforming India into a leading
Quantum-Powered Economy
Figure 5: Estimated value of quantum technologies in India by 2030.
23
Quantum sensing (Figure 6), simulation, and computing will power breakthroughs
in diagnostics, energy grid management, logistics optimization, molecular
research, and materials discovery, while also catalyzing a vibrant startup and
MSME ecosystem. This transformation could enable Indian companies to move
up the global value chain and build new business models in cloud, HPC, and
quantum-centric services.
Figure 6: Potential applications of quantum sensing, where it is expected to provide substantial
advancement over classical sensing in terms of precision and reliability.
24
Some of the use cases where quantum computing can unlock value across these
different sectors in India are listed below:
23
NASSCOM-Avasant , “The Quantum Revolution in India”, 2022.
24
Avasant Quantum Series, Quantum sensing in business – what every enterprise leader needs to know, Jul 2025. 20Transforming India into a leading
Quantum-Powered Economy
(i) Airlines.
25,26
India’s aviation industry has seen remarkable growth over the
past decade. Domestic air travel is projected to double, reaching 300 million
passengers by 2030, up from 152 million in 2023. The number of operational
airports has risen from 74 in 2014 to 157 in 2024, with a target of 350–400 by 2047.
This rapid expansion introduces complex operational challenges, demanding
greater efficiency, cost optimisation, and sustainability. Quantum computing
holds promise in addressing these needs—by resolving operational disruptions,
optimising network planning, personalising customer experiences and improving
revenue management.
(ii) Renewable Energy. Government of India is making a focused effort around
renewable energy with the country’s ambitious renewable energy target of
achieving 500 GW from non-fossil sources by 2030. As renewable energy sources
expand and consumption patterns evolve, this throws new challenges in energy
demand forecasting, optimisation and storage. Integrating renewable energy into
the grid requires advanced algorithms that can process weather forecasts, grid
dynamics, and consumption patterns to accurately predict supply and demand.
Optimising operations and energy storage involves solving complex, real-time,
multi-variable problems that go beyond the capacity of traditional methods.
These kinds of problems are best suited for quantum computers to solve given
the constraints of classical computing.
(iii) Logistics. India’s logistics sector is undergoing a major transformation under
the PM GatiShakti initiative
27
, which integrates infrastructure planning across 44
central ministries and 36 states. With an investment of INR 11.17 lakh crore across
434 key projects, and over 91 multimodal cargo terminals already operational, the
initiative is enhancing connectivity and reducing bottlenecks. The Indian freight
and logistics market is projected to reach USD 484 billion by 2029 (from USD
317 billion in 2024), while logistics costs—historically 13–18% of GDP—are being
streamlined toward the global benchmark of 8%.
Quantum computing can significantly enhance India’s logistics sector, especially
in the context of the PM GatiShakti initiative. By solving complex optimisation
problems at scale, quantum algorithms can potentially improve multimodal
route planning, reduce transit times, and cut logistics costs. They can optimise
warehouse and cold-chain operations, enhance demand forecasting, and support
real-time decision-making across India’s vast transport network. As India invests
in infrastructure and aims to reduce logistics costs to global benchmarks,
quantum computing offers a powerful tool to boost efficiency, resilience, and
competitiveness in the logistics ecosystem.
(iv) Banking & Financial Markets.
28
Quantum computing has the potential to
revolutionise the banking and financial markets by tackling complex problems
that are currently computationally intensive. In trading optimisation, quantum
algorithms have the potential to analyse vast datasets to identify optimal trading
strategies and arbitrage opportunities in real time, far surpassing classical models.
For risk profiling, quantum systems can simulate a broader range of market
scenarios and asset correlations, enabling more accurate assessment of portfolio
risk and stress testing. In customer targeting and prediction, quantum machine
25
https://www.reuters.com/business/aerospace-defense/global-airlines-bet-india-travel-boom-2024-06-14/
26
https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=152143
27
https://www.business-standard.com/economy/news/pm-gati-shakti-logistics-policy-to-push-india-s-world-bank-
ranking-report-125020500981_1.html?utm_source=chatgpt.com
28
The Quantum Decade, IBM Institute of Business Value. 21Transforming India into a leading
Quantum-Powered Economy
learning can uncover deeper behavioral patterns, leading to more precise credit
scoring, fraud detection, and personalized financial product recommendations.
(v) Chemicals and Petroleum. Quantum computers can potentially simulate molecular
interactions to accelerate the development of new catalysts, surfactants, and
chemical products, while also optimizing feedstock routing, refining processes,
and reservoir productivity.
(vi) Electronics. Quantum simulations can enable the discovery of advanced materials,
leading to smarter manufacturing and innovative product designs.
(vii) Healthcare and life sciences. Quantum algorithms can enhance diagnostic
accuracy, support precision medicine, and accelerate drug discovery—especially
in modeling protein folding and small-molecule interactions.
(viii) Insurance. Quantum machine learning can revolutionize customer and risk
classification, improve catastrophe and mortality projections, and refine
premium pricing models.
(ix) HPC-Quantum to quantum-centric supercomputing . HPC and cloud infrastructure
space will need to factor in quantum technologies into the mix. It will have to
figure out how to map workflow into CPUs, GPUs and QPUs managing cost,
quality of solution and efficiency trade-offs. In the coming years, quantum
communication amongst clusters within a center, between centers, eventually
leading to quantum internet, requiring novel solutions and businesses to emerge.
3.2.2 Risks
The disruptive nature of quantum can pose significant challenges for industry. Quantum
computing could upend cybersecurity, rendering current encryption obsolete and
creating systemic vulnerabilities across financial, energy, and critical infrastructure
networks. The rapid infusion of quantum-enabled AI may accelerate automation,
pressuring traditional jobs and requiring costly reskilling. For businesses, the capital
intensity, talent shortages, and uncertain timelines of quantum maturity could lead
to stranded investments if strategies are poorly aligned. Navigating these risks will
require coordinated policy, industry collaboration, and early capability-building to
ensure Indian industry captures value rather than gets disrupted. 22Transforming India into a leading
Quantum-Powered Economy
4. INDIA’S POSITIONING: CURRENT SITUATION ANALYSIS, STRENGTHS AND
BARRIERS
4.1 Current State of India’s Quantum Value Chain
Figure 7: Current state of India’s value chain.
29
29
Adapted from: The Quantum Value Chain Report, QETCI, Dec 2023. 23Transforming India into a leading
Quantum-Powered Economy
In the complex space of quantum value chain, India presents a mixed picture (Figure 7).
Amongst the key verticals, quantum communication shows relatively stronger performance
across most aspects of the value chain. Quantum sensing seems to have reasonable footprint
while quantum computing has definite gaps. Across the board, India needs to pay significant
attention to technology supply chain dependency, limited investment in end-to-end system
development, especially in building indigenous quantum hardware and foundational software
stacks that interface directly with hardware.
To become globally competitive, India must urgently:
(i) Strengthen its hardware-software co-design ecosystem.
(ii) Invest in standards development, and build cross-sectoral consortia to shape the
quantum technology landscape.
(iii) Create confidence-building mechanisms for industry and investors through
regulatory clarity and long-term policy signals.
(iv) Scale up R&D, incubation, and capital flows across the entire quantum stack—
from materials and devices to algorithms and applications.
Table 2 shows the SWOT analysis of Indian ecosystem in quantum technologies and highlights
some of the key points.
StrengthsWeaknesses
• Over 91,000 STEM graduates
• Strong and mature IT services sector
• State-led R&D hubs (QuRP, AQV) and
competition among states
• Kernel of military-industrial complex
emerging through programs like iDEX
• Large domestic market, growing economy
and digital infrastructure (DPI)
• Larger gaps in quantum computing -
hardware, system integration and software
stack
• Import dependence on peripherals and
materials
• Low investment in basic science (0.65% of
GDP), low quality of research (~10%) and IP
share (not in top 10)
• IP governance needs strengthening
• Skills gap in cryogenics, optics, microwave
systems and techno-business talent
• Procurement and audit processes are
complex and time consuming 24Transforming India into a leading
Quantum-Powered Economy
OpportunitiesThreats
• Potential trillion dollar quantum economy
that is still green-field
• Geo-strategic need to diversify dependence
on materials and peripherals away from
China
• Quantum technologies can fundamentally
transform healthcare, energy, logistics,
finance, manufacturing
• Defence adoption to expand and deepen
military-industrial complex
• China’s investment in quantum and
dominance in materials
• IP ownership and talent loss due to
redomiciling of startups
• Risk-averse capital, overregulation and
policy uncertainties slowing adoption
• Rule followers if Indian stakeholders don’t
participate actively in global standards
body
• Tax uncertainties and policies limiting cross-
investment in startups across countries
reduces investor confidence
Table 2: SWOT analysis of India, its ecosystem and capabilities.
4.2 Analysis on key success imperatives
4.2.1 Materials and supply-chain
Quantum technologies depend on many advanced and rare materials, which are
not easily available locally. As an illustration, Figure 8 shows the materials used by
different quantum technology components and their dominant source countries
in the supply chain of The Netherlands.
Figure 8: Overview of the materials that are required for quantum technology R&D in the Dutch
ecosystem.
30,31
30
U. Mans, J. Rabbie and B. Hoppman, Critical Raw Materials for Quantum Technologies: Towards European technology
sovereignty in an emerging industry, Ver 1.0, 27 Nov 2023.
31
Office of the Principal Scientific Advisor to the Gov. of India, “India’s International Technology Engagement Strategy for
Quantum Science, Technology and Innovation,” 1st ed., Apr 2025. 25Transforming India into a leading
Quantum-Powered Economy
While this is not specific to India, their general landscape of materials and sources will likely
look not too different. To ensure a stable supply of such materials as India looks to scale in
quantum technologies, it will be critical to develop a strong and deep understanding of the
supply chain and ensure resilient trade and economic ties with nations and entities on which
there will be dependencies, to reduce bottlenecks and vulnerability to market and global
dynamics. It will be important to also develop local sources of critical and strategic materials,
and refinement and processing capabilities. It is to be noted that China has a dominant
presence both in raw materials and in processing.
A higher-level view of dependency at technology level is shown in Figure 9. US has a full stack
presence and is in the pre-eminent position in this space. It is to be noted that China is not far
behind and has strong presence in majority of those supply chain. Peripheral manufacturing
in the context of quantum technologies usually alludes to subset of this supply chain, i.e.
control, device and components.
Figure 9: Quantum technologies supply chain.
32,33
4.2.2 Investments
Investment into quantum technologies should be considered holistically – both public and
private. In terms of public investment, India features amongst the top countries in the world
(see Figure 10). It is important to note, however, that the difference in public investment
between India and the top 3-4 countries is quite substantial, especially when compared to
China that has invested about USD 15.3B
34
compared to India’s USD 0.7B.
On private investment, the US is by far the leader. Figure 11 shows the private investments
by country as well as the number of startups by country. It is to be expected that US leads
the number of startups in this space. It is interesting to note that India features highly
in the number of startups but not in the list on investment. This does raise the question
on capacity of Indian startups to perform competitive technology development and
market scaling.
32
World Economic Forum, Quantum Economy Blueprint, Jan 2024.
33
Riekeles, Georg E., Quantum technologies and value chain: Why and how Europe must act now? , European Policy
Centre, Mar 2023.
34
https://www.mckinsey.com/featured-insights/sustainable-inclusive-growth/charts/betting-big-on-quantum 26Transforming India into a leading
Quantum-Powered Economy
It is worth noting that countries such as the US, Canada and UK have a significant
portion of investment into quantum technologies coming from private source, with
a healthy balance between public and private funding. In fact, in China while private
investment is estimated at a non-trivial USD 1B, the public funding however is estimated
to be the highest in the world. India can benefit substantially from much higher private
investment that is in balance with public funding, while at the same time seeing much
higher levels of public funding.
Figure 10: Government funding announcements indicate opportunity for India to grow investment.
35

(Note: this captures announcement since 2023; China doesn’t feature here as it announced it’s quantum
investments in 2022).
Figure 11: Private investment and startups by country: (a) investment, and (b) number of startups.
36
35
McKinsey and Company, Quantum Technology Monitor, Jun 2025.
36
Office of the Principal Scientific Advisor to the Gov. of India, “India’s International Technology Engagement Strategy for
Quantum Science, Technology and Innovation,” 1st ed., Apr 2025. 27Transforming India into a leading
Quantum-Powered Economy
4.2.3 Research
Table 3 shows percentage of publications from India in different quantum verticals
that are in top 10% globally.
37
While India has a good quantity of publications,
the quality of those publications is on average about 10%. This metric needs to
increase substantially for India to become a leader.
Technology area% of Indian publications in top journals
Quantum computing9.7%
Quantum communications and cryptography 9.4%
Quantum materials and devices12%
Quantum sensing and metrology8.7%
Table 3: Quality of research publications in quantum technologies from India.
38
Figure 12 shows the share of quantum-relevant scientific publications by country
for 2023 and 2024. China is by far the leader with US and EU being distant
second, and China is extending the gap further. The share of authors from India
contributing to quantum-relevant publications in 2023 and 2024 has remained flat
at about 2%. While India does feature in the top 10, China’s contribution is over
20X that of India’s in 2024.
Figure 12: Share of authors from country’s research institutions contributing to quantum-relevant
publications for years 2023 and 2024.
39
37
Considers top journals and the number of citations.
38
Office of the Principal Scientific Advisor to the Gov. of India, “India’s International Technology Engagement Strategy for
Quantum Science, Technology and Innovation,” 1st ed., Apr 2025.
39
McKinsey and Company, Quantum Technology Monitor, 2025 (sourced from Nature Index). 28Transforming India into a leading
Quantum-Powered Economy
4.2.4 Patent ownership
The patent profile for India, in proportion to the investment made, seems reasonable
(Figure 13 (a)). Figure 13(b) shows the patents organized by the country of
ownership across all verticals. It is to be noted that India does not feature in the
top 10 in this list.
Figure 13: Patents and ownership countries: (a) Patents in India, (b) Patents by owning countries
across verticals.
10
4.3 Enablers and unlocks needed
4.3.1 Skills: Scientific, Engineering and Techno-Business
Quantum technologies have skill requirements spanning across many disciplines:
intricate design and manufacturing of quantum hardware, such as quantum
processors and photon detectors, to developing sophisticated quantum software
and algorithms necessary for practical applications. Specialists in these areas must
possess deep knowledge of quantum mechanics, quantum information theory, and
quantum cryptography, which enables them to understand and develop the theory and
applications of quantum technologies. At the same time, there is a need for a workforce
with a variety of supporting skills, such as proficiency in classical computing, materials
science, engineering, cybersecurity, data science, sales, marketing, and business
development. These supporting skills are crucial for integrating quantum technologies
within existing systems, to develop real-world applications and to connect market needs
to these emerging technology products and scale business models. It is expected that
there will be a workforce requirement of 600,000 new positions worldwide by 2040.
40

If India is in the top few quantum economies, we may expect roughly 20-25% of this
workforce deployment to be in India.
40
Venegas-Gomez, Araceli, “The quantum ecosystem and its future workforce: A journey through the funding, the hype,
the opportunities, and the risks related to the emerging field of quantum technologies”, Photonics Views 17.6 (2020). 29Transforming India into a leading
Quantum-Powered Economy
(i) Strengths
India has had a sustained research workforce in the areas related to quantum
technologies, with an estimated 170 professors
41
in these areas. Many of these
professors have deep domain skills at global competency levels, and regularly
publish new research in these areas, which requires mentoring students and
researchers. There is a strong software engineering and computer science
skill capacity in India given the strength of the IT sector. India stands second
in terms of number of graduates in quantum technology relevant fields. Out of
an estimated 367,000 graduates, it is estimated that 91,000 are in India. The
estimated distribution across countries is as follows:
42
Country/Region# of graduates (in 1000s)
European Union113
India91
China64
United States of America55
Russia26
United Kingdom18
India has one the leading user base of quantum computing in the world.
Figure 14 shows the users of IBM’s quantum computing systems by country.
India stands at number two right after the US, indicating the tremendous
interest and awareness in India among learners. This is despite having
relatively few initiatives and programs for quantum computing education in
the country. While this data is limited to IBM systems, it does indicate the
ability of Indian learners and professionals to skill up on quantum software
development.
Figure 14: Active users of IBM Quantum systems over the period of June 2024
to May 2025. Source: IBM.
If we take a deeper look at the actual usage of the quantum systems, we see
another aspect to this. Figure 15 shows the usage in hours, and we see that in this
case India stands much lower. When coupled with the number of active users, the
finding here is that while there are many Indians who are skilling up to program
quantum computers, they are not following through to meaningful, deeper
usage beyond the initial education levels likely because of the scarcity of funding
and projects to motivate this deeper usage. This indicates the need for India to
ensure that there is an environment that funds and supports deeper skilling and
productive algorithm development expertise in our learners and researchers.
41
NITI Frontier Tech Hub, Quantum Computing: National Security Implications & Strategic Preparedness, Mar 2025.
42
McKinsey and Company, Quantum Technology Monitor, Apr 2024. 30Transforming India into a leading
Quantum-Powered Economy
It further indicates that access to quantum hardware is the limiting factor and
strategies need to be evolved that democratizes access to latest hardware.
Figure 15: Quantum system usage in hours over the period of June 2024 to
May 2025. Source IBM.
(ii) Unlocks needed
Need for much more scientific, technological, and techno-business skill breadth
and availability.
These skills need to be built across the four domains of quantum technologies. They
are often multi-disciplinary and include different disciplines like physics, material
science, computer science, electronics engineering, communication engineering,
electrical engineering, mechanical engineering, etc. Quantum technologies also
require new techno-business capabilities in developing business use cases for real
world applications, and marketing quantum technologies across different sectors
in industry. Currently, India’s educational focus with quantum technologies is on
advanced degrees to power R&D capabilities; while the number of graduates is
high, there is insufficient inter-disciplinary breadth in the workforce, a scarcity
of manpower in specialized engineering skills with cutting-edge expertise and
experience, and insufficient access to techno-business professionals that can
help connect lab-to-product-to-market. In addition, there is also a need for a
workforce with practical skills in working with cryogenics systems, microwave
electronics, and fiber optics – all of which will be critical within the next few years.
Limited funding and resource constraints in education. A limited funding for
education and training programs, coupled with a shortage of qualified instructors
and infrastructure, makes it difficult to scale-up the demand for industry ready
workforce. There is a need for increased funding to ensure that public and private
engineering and science colleges in India are ready for meeting the demand for
a workforce skilled in quantum technologies. Nation-wide digital platforms like
SWAYAM and sponsored labs in regional NQM hubs can fast-track the training
infrastructure.
4.3.2 Industry: readiness, investment and adoption
(i) Strengths
Indian IT services companies are positioned well and are prepared for quantum
computing opportunities. IT services majors have invested in quantum computing
and have both trained resources and have programs to scale out the training for
more engineers. The Infosys Quantum Living Labs, TCS Quantum Computing
Lab, HCL’s Q-Labs, Wipro’s MoU with Tel Aviv University, LTIMindtree Research
– Quantum are some examples of IT services majors having Center of Excellence
(CoE) internally, demonstrating their forward-looking investments. 31Transforming India into a leading
Quantum-Powered Economy
Indian market, industry and global capability center (GCC). India is a large
market and is keen to leapfrog technology cycles. There is an opportunity in the
medium term to test, improve and benefit from quantum technologies. There is
also the possibility of integrating quantum computing related technologies into
India’s robust DPI. India can become a one stop destination for global multi-
national corporations (MNCs) for R&D in quantum technology as India houses
more than 1,800 GCCs for MNCs. 
Efforts in linking strategic sector with startups have started, for example
the Innovation for Defence Excellence (iDeX) scheme by the Ministry of
Defence.
43
The iDeX scheme aims to
• facilitate rapid development of new, indigenised, and innovative technologies
for the Indian defence and aerospace sector, to meet their needs in a shorter
time span,
• create a culture of engagement with innovative startups, to encourage co-
creation for defence and aerospace sectors, and
• empower a culture of technology co-creation and co-innovation within the
defence and aerospace sectors.
With a budget of about INR 498 cr, that allows grants of up to INR 10 cr to
startups and MSMEs along with a partner incubator program, the iDEX scheme
is a definite step in creating a positive flywheel of innovation-to-scale between
the defence sector and startups. This can also enable some of the quantum
technology startups to harden their products and develop a business. While this
is a very positive start, much more can be done to increase such investment and
flywheels not just with defence sector, but many other parts of the public sector.
State-level initiatives to incubate quantum R&D and attracting private
investment exist. Several Indian states have created initiatives and funding
schemes for quantum technology R&D and even for creating quantum ecosystems
and economy. For example, Karnataka created the Quantum Research Park
(QuRP)
44
at IISc as a CoE in the domain of quantum technologies. QuRP is setting
up infrastructure consisting of equipment and instrument cluster, which can be
shared nationally for research. It organizes internships and skilling programs
and develops industry and startup collaborations with academia. More recently,
Andhra Pradesh has launched a Amaravati Quantum Valley (AQV) Tech Park with
an ambitious agenda
45
of creating a quantum technologies based ecosystem of
research, development and commercial activity in Andhra Pradesh. This facility
plans to have a Living-Lab Infrastructure that integrate quantum computers,
QKD fibre links, and deployable sensor platforms to enable pilots across sectors
like health-tech, BFSI, logistics, defence, and space. AQV is partnering with IBM,
Tata Consultancy Services and L&T to deploy IBM’s most powerful quantum
computer
46
by 2026 and grow a partnership with industry and academia, for
quantum algorithms research and at accelerating domestic R&D and capacity
building in quantum technologies. Other states like Telangana have also been
active in developing initiatives and charters for quantum technologies.
43
https://www.ddpmod.gov.in/offerings/schemes-and-services/idex
44
https://iqti.iisc.ac.in/quantum-research-park/
45
Andhra Pradesh G.O.Ms.No.23, ITE&C Department, dt:07.07.2025, Quantum Valley Declaration.
46
IBM Quantum System Two 32Transforming India into a leading
Quantum-Powered Economy
Patient funding support to be initiated by Government of India via the Research
Development and Innovation (RDI) Fund. The RDI fund scheme, approved by
the Union Cabinet of India in 2025, is described as having “been designed to
overcome the constraints and challenges in funding of private sector and seeks
to provide growth & risk capital to sunrise and strategic sectors to facilitate
innovation, promote adoption of technology and enhance competitiveness.”
47

This will surely provide a new and much needed catalyst for large scale private
investment into deep tech startups, including quantum technology startups.
(ii) Unlocks needed
Indian industry is likely to take 3-5 years for wider quantum computing
proficiency and capacity. India has not yet witnessed a robust rate of adoption
of cutting-edge quantum technologies. Indian industry is cautious and waiting to
see more tangible benefits before adopting quantum computing. The challenges
for adoption include (i) cost of quantum computing, (ii) lack of commercial use-
cases, (iii) AI gaining more mind-space, (iv) industry just getting started now, (v)
unfavorable ROI and (vi) geopolitical uncertainty. Most of the challenges listed
(except last one) should be addressed in the medium term.
If we look at the number of large enterprises who are members of the IBM
Quantum Network, which has a 200+ strong organizational membership, we find
the following:
48
Country# of enterprises using IBM Quantum for research
Canada4
Japan14
Korea3
Spain4
Switzerland 2
United States 3
While this is surely not complete data of industry research in quantum
technologies, it is however a proxy indicator to note that there is opportunity for
much more involvement of Indian industry in quantum R&D, especially around
algorithms development tied to business use cases.
Strategic sector engagement with the private ecosystem is limited. While
quantum technologies have progressed leaps and bounds and are at the
precipice of deployment in all technologies to different degrees, it however
needs initial adoption that can offset the risk for private investors. This invariably
is the strategic sector as they have the outlook, funding and wherewithal to
engage with a forward-looking technology. For instance, DRDO’s qualification
systems can be very useful for startups to validate their products; this is
especially true for quantum sensing and metrology as most of their applications
are in the strategic sector. Challenges however include lack of rationalization of
procurement processes, complex audit requirements, and lack of different zones
of engagement within strategic labs that provides access to private players and
can facilitate deeper collaboration. Further, there is a need to develop institutional
pathways like grants and challenges to a much greater scale than present to
incentivise best solutions to reach intended customers.
47
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2141130
48
Source: IBM. 33Transforming India into a leading
Quantum-Powered Economy
Accessing global markets for Indian companies is hard. Deep tech startups in
India have a challenge in that the biggest market for their product is typically
in the US or Europe. This limits startups in both development lifecycle – as it is
hard to find an alpha customer who can help in product-market fit – as well as
in scaling out their deployment and revenue. The limitation is credibility in deep-
tech space as well as not having deeper network in the market ecosystem.
Figure 16: Quantum startups and investment in India.
49
Private capital is risk averse and Private investment in research is very limited.
Private capital and investment in India is presently risk averse and needs a
defined pathway to revenue; this necessarily limits the time-horizon for funding
and returns. Compared to the leading countries, India’s private sector investment
is extremely low within enterprises and on the startup side it is spread very
thin across the large number of startups. These startups will need much more
investment and patient capital, in order to develop differentiating technology and
globally competitive products, and to grow into global market leaders. As we can
see from Figure 16, many of the Indian startups are still in Ideation or Validation
phase at this time and have a long journey to build traction and scaling. Large
companies that are becoming globally competitive and are technology driven
also need to invest much more in research.
Limited presence of local peripherals and component producers. Research
and development in quantum technologies has a critical dependence on the
supply of a variety of components and peripherals, such as cryogenic systems
and electronics, high-end electronics, optics and opto-mechanics, among others.
Today, the research labs and startups in India working on quantum technologies
49
Office of the Principal Scientific Advisor to the Gov. of India, “India’s International Technology Engagement Strategy for
Quantum Science, Technology and Innovation,” 1st ed., Apr 2025. 34Transforming India into a leading
Quantum-Powered Economy
largely depend on external suppliers for such components and peripherals; for
example, Thorlabs is a dominant provider of optical peripherals. This means
that they suffer from both high procurement costs and overhead, long lag
times between requirement and actual use, and lack of local workforce that
can provide integration and maintenance support. Unless India can develop a
local manufacturing ecosystem for at least a portion of these components and
peripherals, this will be a key barrier to scaling.Colorado state
50
in the US serves as
one state-level example of how an ecosystem for such peripherals development
can be setup, which is creating a positive flywheel with the rapid growth of
quantum computing startups in that state.
Regulatory requirements especially for manufacturing sector is too steep. There
are multiple systemic barriers for someone doing experiments and/or advanced
manufacturing – be it peripheral or core technology. It includes: (i) taxation
policies that increases cost significantly, making the product uncompetitive, (ii)
importing components or tools from outside is both time-consuming and requires
significant bandwidth, (iii) tax uncertainties – especially arbitrariness and lack of
formal process for determining taxes – increases investment risk.
Foreign investment in India and Indian investment globally has policy
constraints. Greater foreign investment in Indian startups builds a stake in
the success of those startups and for those startups to have greater access in
investors’ markets. Indian investment globally can lead to greater technology
and knowledge sharing opportunities, and for advanced collaboration with
Indian entities. India should encourage more cross-investments in cutting edge
technologies and should not be viewed from narrow ownership lens; rather it
should be viewed from technology advancement and skill enhancement prism;
these will enable greater economic value-unlock in the future.
4.3.3 Ease of doing research and lab-to-market
(i) Strengths
Anusandhan National Research Foundation (ANRF). Established through an Act
of Parliament, ANRF Act, 2023, ANRF will “provide high-level strategic directions
for research, innovation, and entrepreneurship in the fields of natural sciences,
including mathematical sciences, engineering and technology, environmental and
earth sciences, health and agriculture, and scientific and technological interfaces
of humanities and social sciences. Anusandhan National Research Foundation
(ANRF) has been established to promote research and development and foster
a culture of research and innovation throughout India’s Universities, Colleges,
Research Institutions, and R&D laboratories.”
51
This is a promising structural
change to bring much higher focus on strategic research and to foster a culture
of research and innovation in India.
The Ministry of Finance of the Govt. of India has recently eased procurement
rules for scientific research, making it easier for researchers, who rely on
government funding, to procure equipment and consumables for their research
and empowering the hosting institutions more to enable local decision making.
India has made progress in beyond-lab validation and deployment of some
quantum technologies. There are several startups with meaningful products that
are beyond the lab stage and early customers in India and globally. Some examples
are QNu Labs for quantum communications, BosonQ Psi for quantum algorithms,
50
The Quantum Insider, How to Build a Quantum State: Inside Colorado’s Strategy for a Quantum-Ready Public, Apr
2025.
51
https://serb.gov.in 35Transforming India into a leading
Quantum-Powered Economy
Pristine Diamonds for high quality diamonds for quantum sensing, among others.
In quantum communications, India is one of the few countries that has performed
long-range demonstration of quantum-key distribution (QKD). Raman Research
Institute (RRI) first demonstrated free space entanglement based QKD in 2021,
and then between a stationary source and a moving receiver in 2023. Since 2021
ISRO and DRDO have demonstrated additional progress and very recently IIT
Delhi demonstrated free-space QKD over 1 km. In 2023, IIT Delhi demonstrated
trusted-node fiber-based QKD over 380 km. However, at the same time US has
demonstrated fiber-based QKD of over 1,707 km
52
and China has reached 1,002
km
44
. China has set up the world’s largest quantum communication network
spanning much of the nation with a quantum industry ecosystem of research
institutes and firms leveraging it.
(ii) Unlocks needed
Funding for scientific research remains low in India. India investment in
scientific research is relatively low though in recent years it has made great
strides in establishing missions and initiatives in targeted areas, such as with
the National Quantum Mission (Figure 10). As per the UNESCO Institute of
Statistics data published on the World Bank Open Data platform
53
, India ranks
approximately 53
rd
on this measure with its 2020 spend of 0.65%. As a reference,
Republic of Korea spends 5.2%, the US 3.6%, China 2.6% and Brazil 1.15%. For
example, EU has been funding basic science significantly and consistently
over a long period of time (Figure 17); this sustained commitment is because
breakthrough quantum technologies require deep theoretical advances along
with applied development efforts. The quantum simulation field illustrates this
imperative, having evolved from a niche research area to mainstream particle
physics community within just a few years. Recent research
54
notes that this is
driven by “impressive advancements in Quantum Information Sciences (QIS) and
associated technologies.” The current quantum industries rely on discoveries
from three decades ago, emphasizing that the quantum technologies of 2035
and 2047 depend on the fundamental research we fund today. India needs a
broad-based, globally competitive scientific research ecosystem with competent
levels of funding and exploratory scientific research, if it aspires to be a leader in
quantum science and technologies.
Ease of Doing Science and scaling innovation need significant progress. India has
a relatively low share of high quality scientific output, ranking 11
th
on the 2022 Nature
Index that measures scientific output in natural and health sciences, and having
publication count that is 6.6% of the US and 8.2% of China.
55
In the Global Innovation
Index (GII)
56
– combines both Innovation Inputs and Innovation Outputs, India ranks
39
th
as per the 2024 GII rankings; India however is one of the top overperformers
relative to the level of development.
57
However, there is opportunity to make the
innovation environment much better to enable rapid and scaled translation of new
technologies like quantum to outputs that impact the economy.
52
J. Groenewegen-Lau, A. Hmaidi, “China’s long view on quantum tech as the US and EU playing catch-up,” Dec. 2024.
53
https://data.worldbank.org/indicator/GB.XPD.RSDV.GD.ZS
54
Bauer et al., “Quantum Simulation for High-Energy Physics”, PRXQuantum 4, May 2023.
55
2022 Nature Index. https://www.nature.com/nature-index/research-leaders/2023/country/all/global.
56
2024 Global Innovation Index. https://www.wipo.int/web-publications/global-innovation-index-2024/en/gii-2024-
results.html
57
India has made significant strides by improving its GII rank from 66 to 39 in just 6 years from 2019 to 2024. 36Transforming India into a leading
Quantum-Powered Economy
Figure 17: Funding for projects in the EU as per the eGrants database of the European
Commission, shows significant funding channeled toward basic science in addition to
topical verticals. *Funding data of the 2025 may be incomplete.
The key challenge is that it is not easy to do science in India. The Ease of doing
science (EoDS) index is a metric developed by FAST India to measure the
ease of conducting science research in a country, which includes factors such
as ease of obtaining funds, ease of utilizing funds, developing collaborations,
commercialization and institutional support. Researchers surveyed by FAST
India gave an average EoDS of 57.6 to the top Indian research institutions, and
an average of 80 to foreign institutions where they had experience (Figure 18).
Ease of utilising funds was rated lowest, with 58% scientists rating it below
average, followed by ease of fundraising and commercialisation with 45-49%
rating them below average. The survey found that early career researchers find it
harder to utilise funds and getting institutional support compared to experienced
researchers, indicating complex processes, people dynamics and lack of
documentation. Factors associated with granting agencies were rated as being
more difficult than dealing with academic institutes. The factors that received low
rating: (i) timelines for processing grants, (ii) availability of big money to conduct
research, (iii) objectiveness of selection criteria, (iv) ease of utilisation of funds, (v)
funding for international travel and (vi) availability of equipment and resources.
Figure 18: Ease of Doing Science, Indian vs Foreign experience: EoDS in India is 22.4
points below EoDS of Foreign Nations on a 100 point scale.
58
58
V. Aggarwal, H. Kaur, K. Misra, and A. Seshadri, Ease of Doing Science Index 2023, Measuring performance of top Indian
research institutions, FAST India Report, 2023. 37Transforming India into a leading
Quantum-Powered Economy
Lack of institutional pathways, incentives and funding for translational
research. India needs to address the gap between science and technology that
exists today. The gap lies in taking the insights in science and translating it to
technology that is needed in the market. This is so because there is additional
work needed to translate scientific insights to proof-of-concept (PoC) and then
into a minimum viable product (MVP). There is not enough attention paid to
funding needed to support this translation research – note that it is still research
albeit publishing opportunities may be less, but intellectual property (IP) could
be developed. Since academic institutions recognize publications more than
IP, and publications are needed for Principal Investigators’ (PIs) professional
development as well as for student to graduate, taking idea to market is not
foremost in the minds of researchers. Academic institutions, and system as a
whole, do not recognize value creation towards professional careers of PIs; also,
there is a lack of institutional support framework such as longer sabbaticals,
managing teaching workload, and freedom to hire professionals on market
competitive basis. Further, there are limited grants and challenges – both size
and number – that incentivises PIs and students to demonstrate their technology,
and to take their idea to market. Government labs, funding agencies and private
sector posing technical challenges that can lead to substantive funding, and a
promise of adoption, will incentivise researchers to navigate the research to PoC
gap with assurance and clarity of purpose.
4.3.4 Ease of doing business and trade
(i) Strengths
Early stage military-industrial complex. Traditionally averse to engaging with
private sector, Indian defence sector is now changing and is engaging more
actively with private sector, more importantly with startups including in deep
technologies like quantum.
59
The defence sector in general is seeing a significant
growth in recent years which is now forming a kernel of military-industrial
complex.
60
Improving trade relations with other technology centers. In recent times, India
has been working with many major countries to improve trade relations and
is negotiating possible free-trade agreements with UK, EU, and the US besides
others. India is also engaging those countries on more sensitive technologies like
defence, nuclear and other strategic technologies.
61

(ii) Unlocks needed
Process, procurement and audit streamlining and deregulation key for success.
India’s software success in part is a story of how Indian industry can thrive if
provided with an open environment. Indian academia and industry alike that
has dependency on engaging with government for procurement of instruments
for instance, go through significant challenges. The process is too complex and
audit requirements too stringent. It takes a lot of bandwidth and effort to make
progress – these are non-tariff barriers that increase cost on industries making
them uncompetitive globally. In academia, onus is placed on a researcher to
double up as accountant and waste inordinately large amount of time on non-
research-oriented work, reducing research efficiency as well as morale. The
system largely operates on the presumption of malfeasance.
59
https://theprint.in/defence/quantum-startup-qubeats-wins-rs-25-crore-govt-grant-to-build-gps-free-navigation-for-
indian-navy/2652032/
60
https://www.theweek.in/theweek/cover/2023/01/14/new-technologies-and-innovations-indian-military.html
61
https://www.state.gov/u-s-security-cooperation-with-india/ 38Transforming India into a leading
Quantum-Powered Economy
Intellectual property regime and its enforcement needs strengthening. Creation
of IP – from application to granting – needs to be done in a time-efficient manner.
Enforcement of IP laws needs strengthening as well as dispute resolution needs
to be done in a time-bound manner.
Policy uncertainties reduce investor confidence. Deep-tech sector by its very
nature has inherent risk of failure, and uncertainties in taxation, process and trade
add further to the burden. A responsible taxation regulatory regime, in lines
with fiscal responsibility regime, which puts guard rails on taxation will increase
investor confidence. A similar uncertainties (arbitrariness) reduction framework
in import process and audit requirements would have a very positive effect as
well.
Atmanirbharta can have unintended consequences. While being Atmanirbhar is
the right goal and aspiration for a country of India’s size, sometimes value creation
can be stifled due to lack of availability of best technology; this is particularly
acute in physical hardware and infrastructure space. It is important to nuance
Atmanirbharta against value creation and value chain that is being built on top of
the best technology (even if it is not locally available). For sectors where there is
skill and capital, and a solution that is emerging, it is best to ensure that they grow
rapidly by making the best technology available, and as seamlessly as possible. In
due course, market efficiency would create a demand for local sourcing, and over
time the talent pool would have evolved into that space as well.
Internationally governments are viewing quantum technologies as strategic
assets. Quantum technologies have geostrategic dimensions and many countries
such as UK are putting up barriers even for academic collaboration with friendly
countries including India. Many countries which are currently technologically more
advanced are trying to maintain their lead by treating quantum technologies as
strategic assets. Indian government should negotiate with those countries and
create spaces for Indian entities – academia and industry – to operate/collaborate.
Standards leadership can be stronger
Standards bodies set norms that a particular sector follows. Once established and
adopted, it is hard to change it. India is engaged in such global efforts such as the
IEC/ISO joint technical committee via the BIS LITD 38-Quantum Technologies
and Applications Sectional Committee, the ITU Focus Group via the TEC National
Working Group on Quantum Technology, and other such efforts. While there is
involvement from researchers, government and some Indian companies in these
global standards efforts, for Indian industry to be competitive globally, there is
scope for much deeper and broader involvement especially as the startup sector
and enterprise sector in India ramps up development and adoption of quantum
technologies. Indian ecosystem should take standards bodies seriously, to
participate in it not only to demonstrate involvement but to also take ownership
to ensure Indian industries can remain competitive. There are many standards
bodies in quantum technologies
62
- like IEC, ISO, JTC – and Indian industry and
startup ecosystem should participate and be represented actively in them.
62
Office of the Principal Scientific Advisor to the Gov. of India, “India’s International Technology Engagement Strategy
for Quantum Science, Technology and Innovation,” 1st ed., Apr 2025. (Refer 1.A.6. Standards) 39Transforming India into a leading
Quantum-Powered Economy
Important to ensure IP ownership remains in India and create favourable
environment for “redomiciling” to India. The last decade has seen an exponential
increase in startups in India. There are over 175 unicorns started by Indians
but only 67 within the country.
63
There is a process of redomiciling where the
startups are incorporating outside India – mostly in the US and Singapore – and
operate in India through a subsidiary.
There are multiple reasons why Indian startups redomicile out of India
39
:
• Capital availability relative to other economies like US and Singapore,
• Foreign investments in Indian startups face limitations of capital account
convertibility and foreign fund investment caps,
• Policy stifling Indian institutional capital, such as regulatory barriers on
insurance,
• Taxation burden higher than other business friendly locations,
• Foreign exchange transactions are challenging due to lack of capital account
convertibility, and
• Process and regulatory compliance for merger and acquisitions (M&A) can
be steep.
This process – called “flipping” – leads to IP, assets and capital moving overseas
to the incorporated country.
64
This means that future fundraising, mergers and/
or exits will happen in the host country and not in India. India needs to pay close
attention to this as most countries in the world see quantum technologies as
strategic, and through “flipping” the IPs will now be owned by entities residing in
the host country; this means that the host country can potentially control the flow
of technology into India should it serve its interest.
63
https://law.asia/why-indian-unicorns-choose-offshore-markets/
64
https://www.financialexpress.com/opinion/onshoring-indian-innovation/2966548/ 40Transforming India into a leading
Quantum-Powered Economy
5. STRATEGIC RECOMMENDATIONS
5.1 Prioritization of Top 3-5 Quantum Opportunity Areas
5.1.1 Strategic sector. Given the many ambitious advancements that country is planning
for – 5
th
generation plane, multi-modal communications, theatre commands – it is
imperative to adopt advanced technologies like quantum. Quantum technologies
can potentially improve solutions to computational fluid dynamics, provide secure
communication, provide GPS-free navigation, unearth new materials that can be used
in designing better airplanes or submarines and the list goes on. In the competitive
global strategic landscape, this sector in particular needs to very open to adopting
quantum technologies from the early stage and not wait for it to be mature.
5.1.2 Health and Pharma. India is a global player in health and pharma market. There is an
opportunity for India to grow from being a cost-effective solution provider of health
and leader in generic drugs, to being a leader in health care - leapfrogging to precision
medicine, advanced biotech & diagnostics, and a center for novel drug discovery and
development. This requires multiple technologies like quantum simulation, sensing and
materials to be deployed simultaneously to obtain a fruitful outcome. India is one of
few countries that has necessary wherewithal on all the technologies to be able to
deliver such an outcome.
5.1.3 Peripherals. Peripherals are vital cog that has potentially a large footprint across multiple
industry/solution verticals. Cryogenics, advanced sensors, cryo-CMOS, filters, isolators,
attenuators, control electronics, high-density wiring, quantum-limited amplifiers,
precision machining, optics and opto-mechanics are some of the examples where India
can manufacture and sell it to the world. With the geostrategic trend of friendshoring,
and India’s drive towards Atmanirbharata, there is a window of opportunity that India
should avail. These devices are key components in global supply-chain not just for
quantum technologies and but for the broader deep technology economy, and offer
a larger market to support businesses while quantum applications gradually mature.
India needs to have a strong presence in this field to meet the aspiration of being a
leader in quantum technologies.
5.1.4 Logistics. Gati-Shakti program is national megaproject that is primarily related to
logistics as is India’s aspiration to be a global maritime player. As India becomes a
manufacturing major, including in semiconductors, managing supply chain logistics will
be very important for the success of the sector. Quantum technologies like advanced
sensors in IoTs, quantum optimization can provide next generation solution and can
provide a significant value add in this space.
5.1.5 Financial services and fintech. There is a large opportunity to grow in fintech esp.
when Indian market cap increases in the coming decades. As Indian economy expands,
it will become one of the important markets for global finance. Innovation in both
financial instruments and investor base expansion and outreach will be important. On
the defensive side, technical challenges like cybersecurity, fraud detection, anomaly
detection will become more pronounced. Quantum computing, communications and
quantum-safe provide novel way to solve these problems and add significant value to
the sector. 41Transforming India into a leading
Quantum-Powered Economy
5.2 Policy and Investment Strategies
5.2.1 Grow the scientific, deep engineering and professional workforce in deployment by an
order of magnitude by 2027-28.
Developing and scaling technology from lab to market needs co-deployment of
scientists and researchers, with deep tech and advanced hardware engineers and
business-aware professionals working together. While we have many graduates in the
sciences and associated areas, today there is a scarcity of a workforce with cutting-
edge and globally top-notch experience, in India. Multiple interventions and initiatives
may be needed to accelerate the availability, deployment and career viability of such
skills. This can include:
(i) Higher remuneration for such skills across academia, technology incubation
centres and startups to be competitive with other career alternatives and
international opportunities.
(ii) Professional development programs that link business and technology skills in
quantum for creating a workforce that can create and grow quantum related
businesses. Additionally, dedicated interdisciplinary quantum engineering
programs at undergraduate and doctoral, alongside vocational training.
(iii) Development of supporting hardware engineering and technology leadership
skills – including global training fellowships that fund and enable training in the
best labs globally for deployment back in India.
(iv) Target 120,000 deployed professionals by 2040, with skills spanning multiple
disciplines such as quantum physics, material science, optical engineering,
quantum information science, quantum-aware business professionals across
sales, marketing and business development.
Impacting Visions: V1, V2, V3, V4, V5
5.2.2 Significantly increase industry awareness of the potential of quantum technology for
different industries and catalyze much higher investment into quantum technologies
by 2027-30.
Quantum technologies will translate to impact at the scale envisioned in our 2035
vision only if there are adopter industries in India that both adopt the technologies and
invest into their development. Today there is very little awareness in different sectors
and companies of the potential that quantum technologies hold for their business and
for their competitiveness; and limited knowledge on the technological advancements
made in these technologies, and how close they are to unlock market value. This
results in lack of engagement and funding from large enterprises to shape and apply
the research and development happening in labs and startups. Multiple interventions
will be needed to address this, including but not limited to:
(i) Regular and meaningful knowledge sharing and use case mapping between
the developers of quantum technologies (startups and research labs) and the
potential adopters (enterprises and public sector entities).
(ii) Joint development, validation and commercialization constructs between the
developers and adopters that allow for use case and value aligned technology 42Transforming India into a leading
Quantum-Powered Economy
development while also allowing the adopters to participate in the economic
benefit of technology commercialization.
(iii) Facilitate and encourage advancement and deployment of quantum algorithms
for application domains to drive economic value and global leadership, while
strategic hardware and scientific development is also encouraged separately and
in parallel.
(iv) By 2035 reach within top 3 countries with global patents related to quantum
technologies.
(v) The government can lead by example and encourage large public sector entities
including defence, Indian Railways, oil and gas majors, nationalized banks, power
utilities, mining corporations, ports, and Navratna PSUs to adopt quantum
computing to address complex, high-impact problems that require computing
capabilities that go beyond the capabilities of today’s classical computers. This
push must happen at a pace faster than the computerisation drive in government
and public sector departments during the 1990s.
(vi) Interventions can be deployed to encourage medium-sized industry involved,
for example, dedicated government-industry challenge grants, tax incentives for
quantum integration, or sandbox programs for sectors such as logistics, materials,
or banking
Impacting Visions: V3, V4
5.2.3 Improve ease of doing research, technology validation and lab-to-market significantly
by 2027.
To reach our 2035 vision, speed in new scientific research, technology development,
scaling and adoption will be critical. The Indian research ecosystem as it stands today,
with low ease of doing science index and global innovation index, will need significant
help and improvement to enable this. This will need to include interventions on multiple
fronts, including:
(i) Much faster deployment of government funds for research and more flexibility in
utilization of the funds in terms of timing. Procurement of complex equipment and
execution of complex experiments often do not progress with short predictable
timelines. It becomes critical to ensure availability of approved funding as and
when needed to remove any friction in speed resulting from funding constraints.
(ii) Significantly reduce encumbrances in procurement processes, especially for
small to medium sized procurements.
(iii) Simplify hiring human resource requirements – terms and process – and empower
peopIe to take decisions related to role definition and renumeration considering
prevailing project requirements and market conditions.
(iv) Create new structures for close collaboration and sharing of labs and technologies
between government labs, research groups, startups and industry. It may
often be the case that a research group develops some new research idea and
technology, but the test bed and equipment ready to validate and refine it may
exist in some government lab within strategic sectors or with industry. We should
set up constructs that allow easy sharing and collaboration across these entities
for such technology validation and refinement. This can be in the form of “yellow
zones” and “green zones” in strategic sector labs which allow for academic
groups and startups to come in and validate and refine their technology. Co- 43Transforming India into a leading
Quantum-Powered Economy
location of university and industry labs, federated testbeds, and periodic open
calls for collaborative R&D could enhance impact.
(v) Policies can be deployed to accelerate go-to-market and scaling of products
and services, around intellectual property licensing, startup incubation, and
early regulatory approvals, especially in healthcare and digital infrastructure. In
addition, targeted “innovation incentives” for faculty, streamlined technology
transfer offices, and recognition of patent/ IP generation in academic promotion
policies.
Impacting Visions: V1, V2, V3, V4
5.2.4 Take steps to substantially grow quality and quantity of fundamental scientific research,
while also growing risk appetite in our funding entities and research institutions by
2027-30.
(i) The overall quality and quantity of fundamental scientific research in India needs
to grow to reach within the top 10 countries of the world on measures such as R&D
funding as percentage of GDP and percentage of publications in top publication
venues. India should aim to grow R&D funding, including for exploratory scientific
research in areas allied to quantum technologies to at least double of what it is
today in terms of percentage of GDP by 2030.
(ii) Our funding entities and our research institutions often tend to embody a low-
risk mindset. This creates an environment that can make it challenging for
ambitious and independent-minded researchers to step outside the comfort
zone and develop atypical and innovative initiatives, and to confidently take
up risky projects. In fact, there are many researchers in India who are willing to
take risk and be ambitious, but the institutional environment, career drivers, and
recognition incentives do not always encourage and support such risk-taking
behavior, and do not allow for failures. It is critical for us to change this and make
our research institutions and funding agencies become comfortable with failure
and risk, to encourage researchers who are willing to be “wild ducks” and reward
leadership behaviors, risk-taking, ambition and collaboration with industry,
startups and other entities in the ecosystem.
Impacting Visions: V1, V5
5.2.5 Make Indian domicile attractive for Indian startups so that >90% deep tech Indian
startups choose to stay domiciled in India.
Because of the trend of “flipping” to offshore domicile, India suffers from loss of
intellectual property and assets associated with these startups and unicorns, with
109 Indian founded unicorns choosing to domicile outside India and only 67 in India.
Especially in quantum technologies, if India has to be a leader in intellectual property
and technology creation, it becomes critical for us to change the environment for
startups so that they find it attractive to stay domiciled in India. This will require address
multiple areas:
(i) Lower and simpler taxation so that India is more attractive from a tax perspective.
Today India stands at a disadvantage with higher tax burden on companies such
as higher rates, difficult to avoid double taxation, etc.
(ii) Simplified corporate regulatory framework that allows more flexibility to startups
and lowers regulatory burden, in areas such as incorporation, mergers and
acquisitions, and fast-track IP registration. 44Transforming India into a leading
Quantum-Powered Economy
(iii) Easier movement of international funds so make international transactions
smoother.
(iv) Incentives for keeping and repatriating domicile and IP to India.
Impacting Visions: V1, V4
5.2.6 Engage actively with global standards bodies and take leadership in international
standard setting related to quantum technologies to ensure that Indian products have
access to global markets.
It will be critical to ensure that the right experts from India, especially from the industry
and the startup ecosystem, are present in these global standards conversations. It is to
be noted that playing an active role in global standards to ensure that they are sensitive
to our industries will be vital for future economic success.
Impacting Visions: V1, V2, V4
5.2.7 Ensure strong trade relations and ease of technology export and import.
The development and scaling of quantum technologies will depend heavily on ready
access to input materials and components from different nations. Similarly, India will
need access to global markets for exporting materials, components and products with
low trade barriers. Given increasing sensitivity for technology sovereignty in many
nations, it will be critical for India to sustain and grow strong trade ties in all areas
related to the supply chain and value chain of quantum technologies across materials,
components, systems, hardware, software and services. It will be important to have a
national quantum supply chain resilience plan, with incentives for local manufacturing
of critical inputs and partnerships with trusted international suppliers.
Impacting Visions: V1, V2, V4 45Transforming India into a leading
Quantum-Powered Economy
6. CONCLUSION
India has a real and present opportunity to develop a strong quantum ecosystem in the
country, with both national impact and global leadership, as discussed in this report with
the Vision for 2035. For capturing this opportunity and realizing this Vision, India must act
on the recommendations in the prior chapter, and overcome the barriers in accelerated
development and adoption of quantum technologies.
6.1 Potential Cost of Inaction
Failure to invest in quantum technologies could have profound and far-reaching consequences
for India’s ambition to become a developed nation by 2047. As quantum stands poised
to be one of the most disruptive forces of the century, neglecting it would amplify India’s
strategic vulnerabilities—forcing reliance on foreign technologies in critical sectors like
defence, cybersecurity, surveillance, and advanced communications, while competitors
like China continue to rapidly advance their quantum capabilities. Economically, India risks
missing out on a sector projected to be worth hundreds of billions to trillions of dollars,
which would stifle domestic growth, limit job creation, and potentially turn its demographic
dividend into a liability, as millions of working-age individuals could remain underemployed
or jobless. This technological lag would also widen the balance of trade deficit, diminish
India’s market share in high-value global industries, and undermine its competitiveness in
manufacturing, semiconductors, and software services. Import dependence on quantum
solutions would increase costs and hobble Indian industry, making the transition to a high-
income country even more challenging as per capita income lags behind global leaders like
China and the US. Ultimately, a lack of robust quantum capabilities would not only endanger
national security and critical infrastructure but also erode India’s strategic autonomy, as
technological dependence could be leveraged by adversaries and even allies to constrain
India’s options on the world stage.
6.2 Conclusion
This roadmap aims to provide an outlook for what quantum economy would be like in 2035
and what should India do now to be a leading player in quantum economy. The roadmap
deconstructs this goal into a set of 5 visions that India needs to set for itself, analysed and
identified the critical gaps, and provided 7 actionable recommendations to overcome the
gaps. It is hoped that these recommendations will complement and strengthen the NQM’s
objectives. It will be critical to ensure that the milestones set by NQM, around hardware
technologies are achieved as planned.
If the recommendations are adopted, the path from 2035 to 2047 will then be much clearer,
where India can capitalize on the strong foundation it builds until 2035 to truly accelerate
the path to Viksit Bharat in 2047, and India will be amongst developed nations of that time.
This will need India to have the ability to cross-leverage its capabilities and global leadership
in quantum to impact other areas of development that will be in focus during the 2035-2047
period. The entire economy and policy landscape should be able to have ready access to the
applications and advantage provided by quantum technologies in 2035 and beyond. This is
within reach but will need all sections of the ecosystem to rise to this call to action – across
policy makers, industry, academia, private capital and the public sector. NOTES NOTES NOTES 50Transforming India into a leading
Quantum-Powered Economy