New Delhi: In a major policy overhaul aimed at strengthening India’s deep-tech ecosystem, the Centre has doubled the validity of “startup” status from 10 to 20 years for companies operating in capital-intensive sectors such as semiconductors, biotechnology and advanced research. The government has also tripled the annual turnover ceiling to ₹300 crore, up from ₹100 crore, allowing high-growth firms to retain startup benefits for much longer.
Officials said the move acknowledges the long gestation cycles involved in deep-tech innovation, where developing commercially viable products often takes a decade or more. By extending the startup window, companies will now continue to access tax exemptions, regulatory relaxations and government support well into their scale-up phase.
The reform marks the most significant change to India’s startup framework in over a decade and is expected to provide crucial breathing room to founders working on complex technologies ranging from chip design and space systems to drug discovery and climate tech.
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Longer runway for research-heavy startups
Until now, startups automatically lost their official status after completing 10 years or crossing ₹100 crore in annual revenue — often just as their core technology began to mature. Industry leaders had long argued that this structure penalised deep-tech firms, which typically require extended R&D cycles and sustained capital before reaching profitability.
Under the revised rules, eligible companies can remain classified as startups for up to 20 years, even if their turnover rises to ₹300 crore. This means they can continue to avail themselves of tax incentives, simplified compliance norms and access to government-backed schemes while refining products and entering global markets.
Policy makers believe the change will reduce premature pressure to scale, enabling founders to focus on engineering breakthroughs rather than short-term financial milestones.
₹1 lakh crore “patient capital” fund and private backing
The policy update is being reinforced by a ₹1 lakh crore government-backed fund designed to provide so-called “patient capital” — long-term financing tailored for research-led ventures that cannot deliver quick returns. The fund will support startups requiring sustained investment over multiple years to complete product development and commercialisation.
Private investors are also stepping in. Leading India and US-based venture firms, including Accel and Premji Invest, have jointly launched the India Deep Tech Alliance, committing over ₹8,000 crore (about $1 billion) to frontier technology startups. Global chip giant Nvidia has joined the initiative as a strategic advisor to help guide companies working on advanced computing and semiconductor applications.
Together, these efforts are expected to bridge a critical funding gap that has historically constrained India’s deep-tech ambitions.
India still trails global peers
While investment momentum is improving, India remains far behind global leaders in deep-tech funding. Indian startups raised approximately $1.65 billion in 2025, up from $1.1 billion in 2024 — a notable jump, but modest in international terms.
By comparison, the United States attracted around $147 billion in deep-tech investments last year, while China secured nearly $81 billion. India’s figures underline both the progress made and the scale of the challenge ahead.
Retaining talent and attracting foreign capital
Experts say the extended startup timeline could deliver two strategic gains. First, it is expected to boost confidence among overseas investors by signalling long-term policy stability, encouraging larger and more patient capital inflows into India’s innovation economy.
Second, the reforms may help stem the trend of promising startups shifting headquarters abroad in search of better regulatory support. With Indian capital markets increasingly receptive to technology-led companies, founders may now find fewer reasons to relocate.
Government officials maintain that the updated framework is designed to position India as a serious contender in next-generation technologies, from semiconductors and life sciences to AI-driven manufacturing.
For India’s deep-tech founders, the message is clear: they now have more time, more capital and greater policy backing to turn complex ideas into globally competitive businesses.
