• Source:JND

It can take decades for deep-tech upstarts in sectors like space, semiconductors and biotechnology to move from research to commercial products. Acknowledging this fact, India has revised its startup policy framework to be more supportive of science and engineering-led start-ups. The adjustment is intended to better synchronise regulatory roadmaps and public funding with the longer development cycles common in deep tech companies, while also mobilising both public and private capital to reinforce the ecosystem.

This week, the Indian government doubled the period for which deep tech companies are treated as startups from 10 years to 20 years. At the same time, it raised the revenue threshold for startup-specific tax, grant, and regulatory benefits to Rs. 3 billion (about $33.12 million), up from Rs. 1 billion (around $11.04 million).

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The move is designed to ensure that startups working on complex technologies are not judged prematurely under timelines better suited to conventional digital or services-based ventures.

The policy update complements New Delhi’s broader push to build a long-horizon deep tech ecosystem. A key pillar of this effort is the Rs. 1 trillion (around $11 billion) Research, Development and Innovation Fund (RDI), announced last year to expand patient capital for R&D-driven companies.

Alongside public funding, U.S. and Indian venture firms have launched the India Deep Tech Alliance, a $1 billion-plus private investor coalition. Members include Accel, Blume Ventures, Celesta Capital, Premji Invest, Ideaspring Capital, Qualcomm Ventures, and Kalaari Capital, with Nvidia acting as an adviser.

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Vishesh Rajaram of Speciale Invest said the earlier framework often created a “false failure signal” by forcing pre-commercial companies to age out of startup status. “By formally recognising deep tech as different, the policy reduces friction in fundraising, follow-on capital, and engagement with the state,” he told TechCrunch.

However, investors note that capital access beyond early stages remains challenging. Arun Kumar of Celesta Capital said the RDI fund is designed to address gaps at Series A and beyond without distorting private investment decisions.


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