Govt rolls out startup status for deeptechs, extends recognition to 20 yrs
The government has formally recognised deeptech startups, extending Startup India benefits to 20 years and raising the turnover limit to Rs 300 crore
 "Govt rolls out startup status for deeptechs, extends recognition to 20 yrs")
The government has formally recognised deeptech startups under the Startup India programme, expanding their eligibility period to 20 years from incorporation, double that of regular startups, according to a gazette notification issued by the Department for Promotion of Industry and Internal Trade (DPIIT).
This shift could help attract more capital into India at a time when global competition for deeptech investments heats up.
According to the notification issued on February 4, the annual turnover threshold for deeptech startups has been set at ₹300 crore, compared with ₹200 crore for regular ones. This implies that deeptechs will lose the startup status and associated benefits after 20 years or upon breaching the ₹300 crore annual turnover limit, whichever is earlier.
A deeptech startup has been defined as companies that contribute a major share of expenditure to research and development (R&D) as a percentage of their revenue or funding. The government has defined such firms as those with long development and gestation periods, higher capital and infrastructure investment, and significant technical or scientific uncertainty.
According to the notification, these entities should be the ones developing solutions based on new scientific or engineering knowledge and creating significant novel intellectual property with plans for commercialisation.
For example, sectors classified as deeptech include artificial intelligence (AI) and related infrastructure, biotechnology, climate tech, among others.
Lloyd Mathias, angel investor and independent director, said the move to double the recognition window acknowledges the “long-gestation” inherent in science-led innovation. “This policy shift effectively de-risks the frontier tech sector, ensuring our innovators are supported throughout their journey from discovery to commercialisation," he added.
The sector’s recognition in the context of startups indicates that companies enjoy the benefits for a longer time as they develop and commercialise such technologies.
Ajay Modi, investment director at Piper Serica VC Fund, said the reform reflects the economic reality of deep tech. “Most companies spend 7-8 years in intensive R&D and lab-scale validation, often losing their startup status just as they enter early commercialisation. It meaningfully improves access to growth capital, grants, and institutional participation at the critical transition from lab to market, strengthening India’s frontier technology ecosystem and its ability to build globally competitive deep-tech champions,” said Modi.
The notification may expand access to private capital on account of reformed rules.
Anirudh A Damani, director of Artha India Ventures, said family offices invest with multi generation horizons, and this change allows that capital to participate meaningfully in deep tech without structural constraints. “For us, this unlocks a wider set of high quality companies that were previously outside the investible framework despite strong fundamentals,” said Damani.