Home / Business and Economy / India Rewrites Startup Rules for Deep Tech Giants
India Rewrites Startup Rules for Deep Tech Giants
8 Feb
Summary
- Startup status extended to 20 years for deep tech firms.
- Revenue threshold for benefits raised to ₹3 billion.
- A ₹1 trillion Research, Development and Innovation Fund launched.
India has updated its startup framework, extending the duration for which deep tech companies qualify for startup status to 20 years. The revenue threshold for receiving startup-specific tax, grant, and regulatory benefits has also been elevated to ₹3 billion (approximately $33.12 million) from the previous ₹1 billion.
This policy adjustment is designed to match regulatory timelines with the extended development periods characteristic of science and engineering-driven businesses. It is part of a broader strategy to cultivate a long-horizon deep tech ecosystem through regulatory reform and the mobilization of public capital.
Key to this strategy is the ₹1 trillion (around $11 billion) Research, Development and Innovation Fund (RDI), announced last year, intended to provide patient financing for R&D-focused companies. Furthermore, a coalition of over $1 billion in private investment, known as the India Deep Tech Alliance, has been established with U.S. and Indian venture firms.
