India’s Startup Wave in Manufacturing Is Reshaping Demand for Digital Design Tools: Dassault
•February 11, 2026
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Companies Mentioned
Why It Matters
Digital‑first product development is becoming essential for Indian manufacturers, boosting efficiency and creating a fertile market for CAD/CAE vendors. The trend also fuels a deep‑tech startup boom that can reshape global supply chains.
Key Takeaways
- •Indian manufacturers adopt digital twins rapidly
- •Hardware startups surge in Tier II/III cities
- •Dassault sees 180‑200 startup applications annually
- •AI accelerates design, augments engineers
- •Virtual prototypes cut physical testing costs
Pulse Analysis
India’s strategic pivot from services to manufacturing is reshaping the demand landscape for digital design tools. As firms seek to compress time‑to‑market, virtual twins—high‑fidelity digital replicas of products and production lines—allow extensive testing without costly physical prototypes. This capability not only trims material waste but also aligns with sustainability goals, making software such as Dassault’s SOLIDWORKS and 3DEXPERIENCE Works indispensable for both large OEMs and niche suppliers.
Concurrently, a new wave of deep‑tech hardware startups is emerging from India’s Tier II and III cities, targeting sectors like electric mobility, medical devices, and industrial automation. These ventures benefit from Dassault’s startup programmes, which receive 180‑200 applications annually, offering discounted software licenses, mentorship, and industry connections. By lowering technology barriers, Dassault helps founders address real‑world industrial challenges, fostering an ecosystem where startups, manufacturers, and investors co‑create solutions that can be replicated across the country and abroad.
Artificial intelligence is set to amplify this momentum, leveraging historic design data to generate alternative concepts and streamline engineering workflows. Rather than replacing engineers, AI acts as a creative catalyst, freeing talent to focus on higher‑value innovation. For investors and market watchers, the convergence of AI, virtual twins, and a burgeoning hardware startup scene signals a transformative period for India’s manufacturing sector, with digital design tools at the core of this evolution.
India’s startup wave in manufacturing is reshaping demand for digital design tools: Dassault
India’s ambitious shift from a services-heavy economy towards manufacturing is aiding demand for software that helps companies design, test, and plan products before they are built, the leaders of French multinational software corporation Dassault Systemes told YourStory on the sidelines of the company’s annual flagship event 3DEXPERIENCE World in Houston.
“We have been seeing a clear shift post-Covid,” said Deepak NG, India Managing Director at Dassault Systemes, pointing to faster adoption of technology among Indian manufacturers. Companies that earlier moved at a slower pace in product development are now investing more in research and in cutting the time it takes to move from an idea to a finished product, he said.
Virtual twins
A key theme in his comments was the growing use of what Dassault calls “virtual twins”—detailed digital versions of products or factories. In simple terms, this allows companies to test designs, production lines, and processes on a computer before spending money on physical prototypes.
“Earlier, many prototypes used to be built, and each one was a cost,” said Deepak. “With digital models and simulation, several companies have sharply reduced the number of physical test versions they need to make.”
That saves money and cuts waste. Some firms, he added, are now building digital models not just of products but also of entire factories to see how assembly lines will behave.
This trend is not limited to large corporations. For smaller suppliers, the “end object” might be a component or sub-assembly rather than a full vehicle or machine, but the same approach applies. “It fits for all, and they can scale based on what exactly they want to do,” he said.
Deepak also highlighted that manufacturing-related software, once seen as “good to have”, is now being treated as essential. Companies are increasingly looking to connect machines on shop floors and manage production through digital systems, rather than relying only on manual planning.
Rise of hardware startups
Running parallel to this is a rise in hardware-focused startups.
Ramakrishnan Venkataraman, Director – SOLIDWORKS & 3DEXPERIENCE Works, Dassault Systèmes India, said the first wave of Indian startups was largely in software and fintech, but more recent years have seen growth in deeptech hardware ventures, especially in areas such as electric vehicles, medical devices, automation and drones.
SOLIDWORKS is a 3D CAD (computer-aided design) and CAE (computer-aided engineering) software brand developed by Dassault Systèmes. It is widely used for modeling, simulation, and manufacturing. 3DEXPERIENCE Works connects people, ideas, data and solutions in a single collaborative environment,
“In the last three to four years, many tech entrepreneurs have started entering this startup arena,” said Venkataraman, who works closely with young companies.
These founders are often tackling specific problems faced by large industries, rather than building products in isolation, he said. That creates a “well cohesive ecosystem” where a startup, a customer, and sometimes an investor are linked around a real industry need.
He noted that Dassault Systèmes sees 180 to 200 applications a year from startups seeking support through the company’s SOLIDWORKS startup programmes.
Many of the newer hardware ventures, Venkataraman said, are emerging from Tier II and III cities, where founders are addressing local industrial challenges that can later be replicated elsewhere.
Both executives stressed that their role is not to fund startups directly, but to lower the technology barrier, as Dassault Systemes doesn’t typically invest in startups. Tools are offered at special terms, along with mentoring and links to industry partners. In some cases, Dassault has also worked with incubators and investor networks to help founders connect with potential backers.
Venkataraman said artificial intelligence will further speed up product development. Using past design data, AI tools can suggest alternative designs and help engineers explore options faster. Rather than replacing engineers, he argued, this could allow them to focus more on creative and higher-value work. “They start doing more innovative ways of working things,” he said.
Edited by Swetha Kannan
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