Deeptech 2.0: India’s 20-Year Bet on 'Sovereign' Innovation
TL;DR: The Indian government (DPIIT) has officially expanded the 'Startup' definition to include deeptech firms, doubling the revenue cap to ₹300 crore and extending the recognition window to 20 years. This move aligns India with global peers like Israel and China, acknowledging that "lab-to-market" cycles for hardware and AI require patient, decadal capital.
Vichaarak Perspective: Regulatory Realism or Just More Paperwork?
For years, Indian deeptech founders (spacetech, biotech, semiconductors) have been "evicted" from the Startup India ecosystem just as they hit their stride. By the time a semiconductor startup finishes its first tape-out (typically 5-7 years), it was often nearing the old 10-year expiration date, losing tax holidays and public procurement preferences exactly when it needed them most for commercial scaling.
The Deep Dive: This policy shift isn't just about tax sops; it's a strategic move toward Sovereign IP. By doubling the turnover limit to ₹300 crore, the government is incentivizing startups to take on large-scale defense and infrastructure contracts (which often hit ₹100cr+ in a single "validation" order) without fear of losing their "startup" benefits.
The Skeptic's View: The bottleneck in Indian deeptech hasn't been the "definition"—it's been the lack of Domestic LP (Limited Partner) capital. While extending the window to 20 years is a great signal, without a corresponding mandate for Indian insurance funds or pension funds to invest in deeptech, we are merely providing a longer "tax-free runway" for foreign VCs to capture the ultimate upside of Indian-born IP.
FAQ (Schema-Ready)
Q: What is the new turnover limit for deeptech startups in India? A: The turnover limit for deeptech startups to be recognized under Startup India has been increased from ₹100 crore to ₹300 crore.
Q: How long is the recognition period for deeptech startups now? A: Deeptech startups can now maintain their "startup" status for up to 20 years from the date of incorporation, compared to the standard 10 years for other sectors.
Q: What benefits do deeptech startups get under the new DPIIT notification? A: Benefits include an extended tax holiday, the ability to carry forward losses for 20 years, an 80% reduction in patent filing fees, and access to collateral-free loans and eased public procurement rules.
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