02-07-2025
On quantum technology, India has much to do. Global partnerships hold the key
Written by Arun Teja Polcumpally
On February 19, Microsoft unveiled Majorana 1, a quantum chip built on a novel state of matter known as topological conductors. CEO Satya Nadella remarked that the development of a fully functional quantum computer is now a matter of years, not decades. Much like the post-AlphaGo AI boom of 2016, quantum technology is poised to reshape global markets, security regimes, and digital governance. For India, this fast-paced technological shift raises a strategic question: How should it position itself as a key global player in quantum technology?
The global quantum market value is estimated to be $ 100 billion by 2040, while the global quantum communication market size is predicted to be approximately $ 13.12 billion by 2034, expanding at a CAGR of 28.25 per cent from 2025 to 2034. Already, Volkswagen uses D Wave quantum computers in Spain for traffic route optimisation, and China has built a 1000-km quantum encrypted communication channel using Quantum Key Distribution (QKD) and post-quantum cryptography. Additionally, quantum technology is dependent on global supply chains of cryogenic systems, specialised lasers, and advanced quantum chip fabrication facilities, which are concentrated among a few countries like the US and China. This also shows the globally restrictive development of quantum technology.
Countries that take the lead in developing quantum computers and encryption standards will gain a first-mover advantage, enabling them to shape global technology norms. These dynamics underscore India's urgent need to engage more proactively in the global quantum landscape.
India launched the National Quantum Mission with a budget of $735 million in 2023, encouraging research and innovation in quantum computing, communication, sensing and materials. However, the scale of private sector investment in quantum technology reveals the nascent stage India is in. Private investment stands at US$30 million, significantly lagging behind the United States ($ 6940 million), Australia ($ 661 million), and South Korea ($ 95.5 million). India is also dependent on raw materials like indium and lacks dedicated fabrication units.
A 2025 report by NITI Aayog noted that export restrictions are tightening around key components essential for quantum development. Simultaneously, the Quad Investors Network highlights India's shortage of skilled quantum engineers as a critical barrier to ecosystem growth. While India has 53 quantum-related startups (compared to China's 63), only 2.63 per cent of domestic quantum research receives industry funding, while 16.8 per cent remains entirely devoid of funding. This reflects deep structural gaps in talent, investment, and secure access to upstream supply chains.
Current collaborative efforts are limited where the partnership between Infosys and QuintessenceLabs in quantum cybersecurity integrates the hybrid quantum encryption into the enterprise solutions of Infosys. While such partnerships are promising, they remain narrow in scope. What's needed is a structured, multilevel partnership, anchored in India's strategic interests. The Office of the Principal Scientific Advisor has advocated for a comprehensive ecosystem mapping, covering investments and supply chain dynamics, to identify collaboration opportunities and vulnerability points. While developing a requirement mapping, India should leverage the initiatives like the 'Quantum Entanglement Exchange', enabling Indian scholars to access advanced American quantum facilities, contributing diverse perspectives to research programmes. This exchange programme will also benefit the India-US TRUST (Transforming the Relationship Utilising Strategic Technology) initiative. Beyond bilateral cooperation, India should push for inclusion in industry-led international quantum standardisation bodies. As quantum communication and encryption systems proliferate, early engagement in setting interoperability norms will help India to quickly develop and deploy quantum technology applications.
Startups must also be part of this multi-level collaboration. Cross-border startup ecosystems could address entrepreneurship gaps through structured collaboration. Initiatives like the India-United States Defence Acceleration Ecosystem (INDUS X) could be undertaken to encourage the quantum innovation ecosystem. Such initiatives could also be trilateral between the US, India and South Korea, as a part of their trilateral technology dialogue. It would be beneficial if the premier incubation centres like the Telangana Hub (T-Hub) in India, the Seoul Startup Hub in South Korea, and the Convergence Accelerator in the US, come together offering joint funding and incubation programs to quantum startups.
Overall, two contrasting approaches dominate quantum development. The first is the China model where its National Natural Science Foundation coordinates research across all quantum domains, outpacing the US's National Science Foundation by 2:1 in published studies. The other approach is that of the US, fostering entrepreneurial innovation through 300 quantum startups — nearly five times China's 63. India occupies a middle position with 53 quantum startups and $735 million allocated through the National Quantum Mission. This approach requires a push from the government and the industry. Since quantum technology development is still in the pre-market competition phase, India should actively engage with like-minded countries to secure its position within technology anchored geopolitics.
The writer is JSW Science and Technology Fellow, Asia Society Policy Institute (ASPI), Delhi
