Andhra Pradesh is set to launch an angel fund aimed at supporting deeptech startups working in areas such as artificial intelligence (AI), electronics, quantum technologies, and advanced manufacturing, in a major push to strengthen the state’s innovation ecosystem. 

According to a report by ET, the state government is creating a dedicated seed fund in collaboration with the Small Industries Development Bank of India (Sidbi) through the Ratan Tata Innovation Hub (RTIH) to back emerging technology startups. 

The initiative is expected to provide early-stage funding support and help startups gain access to industry networks, infrastructure and market opportunities. The government is positioning RTIH as a central platform for nurturing innovation-led enterprises in strategic sectors that are increasingly becoming critical for India’s technology ambitions. 

“Through RTIH and with Sidbi, we are building a platform that gives deep-tech startups access to capital, real-world use cases and the ecosystem needed to scale globally,” Electronics and IT Minister Nara Lokesh told the publication.  

According to the minister, RTIH is expected to play a key role in sectors aligned with Andhra Pradesh’s broader economic and industrial strategy, including AI, electronics manufacturing, clean energy and quantum technologies. 

The move comes as several Indian states intensify efforts to attract startups and technology investments by offering funding support, incubation facilities and policy incentives. With the proposed angel fund, Andhra Pradesh aims to position itself as a major hub for deep-tech innovation and advanced manufacturing in the country. 

Andhra’s big plans in new age technologies  

Earlier, the state had also announced plans to develop nearly 6 GW of data centre capacity over the coming years and has set up a Data Centre Advisory Council to accelerate investments in the sector. Reliance Industries has proposed a ₹1.6 lakh crore data centre project in Visakhapatnam, while Anant Raj has committed ₹4,500 crore towards new data centre and IT park infrastructure in the state. 

At the same time, Andhra Pradesh is also pushing ahead with its “Quantum Valley” initiative, which aims to create India’s first integrated quantum technology hub. The proposed project is expected to bring together quantum computing, semiconductor research, AI and defence innovation on a 50-acre campus under the National Quantum Mission.