India has revised its startup policy framework to give deep tech companies a longer runway, extending official startup recognition from 10 years to 20 years in a move aimed at improving access to funding and supporting long-term innovation.
The policy change, reflects growing recognition by Indian authorities that deep tech startups, working in areas such as artificial intelligence, semiconductors, biotechnology, space technology and advanced manufacturing, require significantly longer development cycles than consumer internet or services-based ventures.
Under the updated rules, eligible deep tech startups will now be able to retain government-recognised startup status for up to two decades. This allows them extended access to incentives including tax benefits, simplified compliance requirements, public procurement opportunities and government-backed funding schemes.
Indian officials say the adjustment is designed to align policy with the realities of deep tech development, where products often take years of research, testing and capital investment before reaching commercial viability. Many founders have previously argued that the earlier 10-year limit was better suited to software and platform startups, leaving deep tech firms disadvantaged.
The change comes as India seeks to position itself as a global hub for advanced technology and reduce dependence on foreign innovation in strategic sectors. The government has already launched initiatives to support semiconductor fabrication, AI research, defence technology and space startups, alongside increased public funding for research and development.
India’s startup ecosystem is one of the largest in the world by number of companies, but deep tech still accounts for a relatively small share of total venture funding. Policymakers believe extending the recognition window will make such ventures more attractive to long-term investors, including sovereign funds, pension funds and global strategic partners.
By giving deep tech startups more time and regulatory certainty, the government aims to improve survival rates, encourage patient capital, and translate scientific research into commercially viable products that can compete globally.
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