India has introduced new rules to support deep tech startups in a move that could transform the innovation landscape. The government has created a separate category for deep tech startups, recognizing that companies working on advanced science and engineering require longer development timelines and specialized support. Under the new rules, deep tech startups can now be recognized for up to twenty years from incorporation, compared to the previous limit of ten years.
The turnover threshold has also been increased, allowing high-revenue science-driven companies to continue enjoying startup benefits until they reach three hundred crore rupees. This provides more runway for companies to access incentives, grants, and tax relief while they focus on research and product development.
The rules expand eligibility to multi-state cooperative societies and relax some earlier requirements, making the startup ecosystem more inclusive. Companies that focus on research and development, create novel intellectual property, and operate in areas with long lead times and high technical uncertainty are classified as deep tech startups.
These changes are designed to align policy with the realities of innovation and attract patient capital willing to support long-term projects. By providing extended recognition and higher revenue limits, India aims to encourage the creation of breakthrough technologies and foster a stronger startup ecosystem that can compete globally in areas such as artificial intelligence, biotechnology, semiconductors, and space technology.
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