Govt consists of deep tech startups in startup definition with larger restrict on years and turnover

The federal government has expanded the scope of startup definition to incorporate deep tech startups with a recognition interval of as much as 20 years and a turnover restrict of Rs 300 crore.

In a gazette notification from the Division for Promotion of Business and Inner Commerce (DPIIT) mentioned, “within the case of an entity recognised as a Deep Tech Startup below this notification, such entity shall stop to be a Deep Tech Startup on completion of twenty years from the date of its incorporation or registration, or if its turnover for any earlier yr exceeds 300 crore rupees.”

This notification comes into speedy impact, however for the non-deep tech startup, the categorisation stays the identical, i.e., for a interval of 10 years anda turnover restrict of Rs 200 crore.

The definition of deep tech, in accordance with the federal government, is that it’s engaged on producing an answer based mostly on new data/developments inside a scientific or engineering self-discipline or a number of disciplines, which is but to be developed or is within the strategy of being developed. It has a excessive share of expenditure on analysis and growth (R&D) actions as a share of income/funding. It owns or is within the course of of making vital novel mental property (IP) and taking steps to commercialise the identical. It’s dealing with prolonged growth timelines, lengthy gestation durations, excessive capital and infrastructure necessities, and carrying giant technical or scientific uncertainty.

Commending the choice of the federal government, Artha Enterprise Fund Managing Associate Anirudh A Damani mentioned it was a optimistic and well timed step, acknowledging the truth of how these firms are constructed. “This transformation unlocks a significant pool of home capital and removes a structural bottleneck that many excessive‑high quality firms had been dealing with,” he remarked.

He additional famous that a number of firms of their pipeline had been held again just because they fell outdoors earlier definitions, regardless of having robust expertise depth and business traction. “This can be a important transfer towards constructing lengthy‑cycle, globally aggressive deep tech companies from India.”

As of December 2025, bets within the deeptech sector have seen a marginal improve in funding in comparison with 2024, with capital flowing into early-stage startups within the section. In response to knowledge from Tracxn, deeptech firms raised $1.57 billion throughout 265 offers year-to-date, in comparison with $1.24 billion raised in 2024 throughout 388 rounds—indicating that, whereas buyers had been extra cautious this yr, they wrote larger cheques to deeptech startups.