India’s government has unveiled significant updates to its startup recognition framework, extending special provisions for deep tech ventures to foster long-term research and development in cutting-edge sectors like space, semiconductors, and biotechnology.
The revisions, announced by the Department for Promotion of Industry and Internal Trade (DPIIT) on February 6, 2026, double the eligibility period for deep tech startups to 20 years from the date of incorporation, acknowledging the extended timelines required for these capital-intensive and R&D-heavy enterprises. The revenue threshold for accessing startup-specific benefits, such as tax exemptions, grants, and regulatory relaxations, has been tripled to ₹300 crore (approximately $33 million) for deep tech firms, up from the previous ₹100 crore limit.
For general startups, the turnover cap has been doubled to ₹200 crore (about $22 million), while the age limit remains at 10 years. The framework now formally defines a “deep tech startup” as an entity primarily focused on producing solutions based on new advancements in scientific or engineering disciplines, and it includes cooperative societies under the Startup India program for the first time. These changes build on the existing Startup India Action Plan, which has already recognized over 140,000 startups since its launch in 2016.
The updates are part of broader efforts to align policies with the realities of deep tech innovation, including the ₹1 trillion (around $11 billion) Research, Development and Innovation Fund announced in 2025 to support such ventures. DPIIT officials stated that the revisions aim to promote equity and confidence in the market while addressing the unique challenges of deep tech entities, which often require extended periods for maturation and commercialization.
These reforms position India to compete more effectively in global deep tech arenas, where countries like the U.S. and China dominate, but experts caution that implementation and access to the RDI fund will be key to realizing benefits. As the Startup India ecosystem evolves, this could catalyze more investment in high-risk, high-reward technologies, potentially transforming India’s innovation landscape.
