India’s first quantum success stories are being written without quantum computers. Instead, startups are winning global customers with quantum-inspired software, algorithms and cybersecurity, signalling that the country’s biggest commercial opportunity may lie above the hardware layer.Bengaluru-based BQP (formerly BosonQ Psi), for instance, already serves more than 20 global aerospace, automotive and energy OEMs without selling a single quantum computer. The company says customers are buying faster engineering simulations and optimisation software today, while keeping a pathway open for future quantum hardware.“The ecosystem’s focus remains heavily skewed towards hardware development, whereas software, algorithms and applications will be the critical near-term drivers of the quantum economy,” said Abhishek Chopra, Founder and CEO, BQP.However, India’s commercial opportunity extends beyond startups.According to Kalyan Mangalapalli, Advisor Nasscom, India’s strengths lie in software, algorithms, cryptography and application development, while the country is likely to remain dependent on imports for the physical layer—including quantum processors, cryogenic systems, photonics and specialised RF components.“India’s advantage sits in the upper and middle layers of the value chain—applications, algorithms, simulation, compilers, orchestration and quantum cloud services,” he said, adding that post-quantum cryptography (PQC) offers the most practical commercial pathway because it upgrades existing digital infrastructure instead of requiring new quantum hardware.Biju Mathews, Partner and Head of NextLabs at Mphasis, echoed this view, saying India’s immediate opportunity lies in optimisation and software-led applications rather than hardware.“India, per se, could play from an optimisation perspective,” he said, adding that while opportunities also exist in machine learning and other quantum applications, software remains the country’s most natural commercial entry point.Even hardware-focused startups are increasingly building software-led revenue streams. QpiAI, which has raised $42 million to date, expects to close the current fiscal with $8-10 million in revenue, backed by an order book of about $5 million for quantum computers.Founder and CEO Nagendra Nagaraja said while software revenues are currently driven by proof-of-concept projects, recurring revenues are expected to increasingly come from Quantum Computing-as-a-Service (QCaaS) and software licensing as enterprise deployments mature.While software revenues are currently driven by proof-of-concept engagements, Nagaraja expects repeat revenues to increasingly come from Quantum Computing-as-a-Service (QCaaS) and software licensing.He expects enterprise deal sizes, currently around $1-2 million, to rise substantially as customers begin integrating larger quantum systems into production workflows.Despite the optimism, industry executives say India’s biggest challenge is no longer research funding but commercial demand.Chopra noted that domestic enterprises continue to rely largely on pilot projects and proof-of-concept engagements, while meaningful recurring revenues are emerging primarily from overseas markets. “Building for global markets is an absolute inevitability,” he said, pointing to North America, Europe and the Middle East as the largest sources of commercial R&D spending.Mangalapalli echoed the concern, saying that while the technology ecosystem is steadily maturing, enterprises remain hesitant to allocate budgets. “For software, cybersecurity and integration, the sharper bottleneck is paying demand,” he said, arguing that procurement, regulation and government-backed paid pilots are needed to create India’s first large-scale commercial customers.Industry executives also highlighted persistent gaps in fabrication, testing infrastructure and specialised supply chains, particularly in cryogenics, photonics, RF components and metrology, even as export controls tighten globally.Meanwhile, QNu Labs says enterprise conversations have become significantly more mature over the past year. “The sales cycle has shortened because regulation and policy are now driving awareness,” said Sunil Gupta, Co-founder and CEO, QNu Labs. “Once quantum risk enters a board’s risk register, discussions move from education to migration planning.”Published on July 13, 2026