VCCircle

Last month, in October, India's science and technology minister Kapil Sibal and the US secretary of state Condoleezza Rice signed an agreement to free academic, corporate and government scientists from striking partnerships in basic research in space exploration, biotechnology, energy, healthcare and nanotechnology. This has a huge impact on what the two countries can do - especially in building business partnerships in nanotechnology.

This article in Small Times clearly highlights the possibilities in this area and what role venture capital funds can do on this front.

Indian brainpower mixed with American venture capital and research sophistication could be a potent combination. Already, according to a survey of venture capitalists done by Deloitte & Touche last spring, 20 percent of U.S. VC firms plan to increase their investment abroad and list India as a top destination. Draper Fisher Jurvetson, a VC heavyweight in Silicon Valley, has plans to pour $200 million into Indian startups. Venture Intelligence India estimates that American VC firms put $397 million into Indian companies in second-quarter 2005 alone.

Although most of those investments go into "call centers and other information technology-related businesses far removed from nanotech", I believe once the environment is there, it's easier to find funding for nanotech projects.

Also read an article in The Financial Express on nanotech in healthcare and the action there:

Several academic institutions are pursuing nanotechnology R&D, among them the Institute of Smart Materials Structures and Systems of the Indian Institute of Science; the Indian Institute of Technology; the Shanmugha Arts, Science, Technology, and Research Academy; the Saha Institute of Nuclear Physics; and the Universities of Delhi, Pune, and Hyderabad. But what remains to be seen is development of products and bring them to market.