Deep-tech startups can qualify as 'startups' for 20 years in India now
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India will allow ‘deep tech’ startup companies to be considered as startups for 20 years after its incorporation while the period will continue to be 10 years from the date of its incorporation or registration for startups in general.
A notification issued by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry said defines ‘deep tech start-up’ as start-up companies that are working on producing a solution based on new knowledge or advancements within a scientific or engineering discipline or multiple disciplines, which is yet to be developed or is in the process of being developed.
Deep tech start-ups
These start-ups should have a high percentage of expenditure on research and development (R&D) activities as a percentage of revenue/funding, should own or must be in the process of creating significant novel intellectual property (IP) and taking steps to commercialise it, and face extended development timelines, long gestation periods, high capital and infrastructure requirements, and carry large technical or scientific uncertainty. Deep tech start-ups will also have an increased turnover limit of ₹300 crore for any of the financial years since incorporation or registration unlike ₹200 crore limit set for Indian start-ups to continue to be categorised as start-ups.
Framework under DPIIT
Stakeholders have welcomed the government’s decision to expand the deep-tech startup framework under DPIIT by extending the recognition window from 10 to 20 years from incorporation.
“This reform reflects the economic reality of deep tech as 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. By correcting this structural mismatch, the new definition ensures that deep-tech companies are not penalised for long gestation cycles. 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,” Ajay Modi, Investment Director, Piper Serica VC Fund, said.
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Any company incorporated or registered in India as a private limited company (as defined in the Companies Act, 2013) or registered as a partnership firm (registered under Section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) can come under the definition of start-ups in general.
Depending on their area of focus, multi-state cooperative societies registered with the Central Registrar of Cooperative Societies (under the Multi-State Cooperative Societies Act, 2002) or cooperative societies registered under any State or Union Territory Cooperative Societies Act with the respective Registrar of Cooperative Societies in India can also be considered as start-ups under the DPIIT definition.