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International cooperation

India's Quantum Conundrum: Navigating Global Innovation and Security Dynamics

Strategic Insights

— 2 min read

India's decision to develop its own quantum technology capabilities poses a critical question: how should the country position itself as a key global player in a rapidly evolving field that promises to reshape global markets, security regimes, and digital governance? The answer lies in proactive engagement with the global quantum landscape, leveraging strategic partnerships, and investing in cutting-edge research and development.

Key Takeaways:

  • The global quantum market value is estimated to be $100 billion by 2040, with the quantum communication market size predicted to be approximately $13.12 billion by 2034, expanding at a CAGR of 28.25 per cent from 2025 to 2034.
  • India's National Quantum Mission has allocated a budget of $735 million to encourage research and innovation in quantum computing, communication, sensing, and materials, but private sector investment in quantum technology remains limited at $30 million, significantly lagging behind other countries.
  • India's dependence on raw materials like indium and lack of dedicated fabrication units create structural gaps in talent, investment, and secure access to upstream supply chains.
  • Current collaborative efforts, such as the partnership between Infosys and QuintessenceLabs in quantum cybersecurity, are narrow in scope and require a structured, multilevel partnership anchored in India's strategic interests.
  • A comprehensive ecosystem mapping, covering investments and supply chain dynamics, is necessary to identify collaboration opportunities and vulnerability points, with the Office of the Principal Scientific Advisor advocating for this initiative.
  • India should leverage initiatives like the "Quantum Entanglement Exchange" and push for inclusion in industry-led international quantum standardisation bodies to establish interoperability norms and develop quantum technology applications.
  • Startups must be part of this multi-level collaboration, with cross-border startup ecosystems addressing entrepreneurship gaps through structured collaboration.

Statistics:

  • The global quantum market value is estimated to be $100 billion by 2040.
  • 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.
  • Private sector investment in quantum technology in India is limited at $30 million, significantly lagging behind other countries like the US ($6,940 million), Australia ($661 million), and South Korea ($95.5 million).
  • India has allocated a budget of $735 million for the National Quantum Mission.
  • China has built a 1000-km quantum encrypted communication channel using Quantum Key Distribution (QKD) and post-quantum cryptography.
  • The Quad Investors Network highlights India's shortage of skilled quantum engineers as a critical barrier to ecosystem growth.
  • India has 53 quantum-related startups (compared to China's 63), with only 2.63 per cent of domestic quantum research receiving industry funding.

Sources:

  • Microsoft (February 19, 2025)
  • NITI Aayog (2025)
  • The Office of the Principal Scientific Advisor (no date)
  • Infosys and QuintessenceLabs (no date)
  • IE Online Media Services Pvt. Ltd. (2025)
  • Contify.com (no date)
  • The Quad Investors Network (no date)

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