India has announced a major update to its startup policy, extending the validity of startup status from 10 years to 20 years and raising the annual turnover limit to ₹300 crore. The move is aimed at supporting deep tech companies operating in capital heavy sectors such as semiconductors, biotechnology, space systems and advanced research, where product development often takes many years.
The decision reflects a recognition that deep tech innovation follows long and complex timelines. Under the revised framework, eligible companies can continue to access tax exemptions, regulatory relaxations and government support even as they enter their scale up phase. Earlier, startups lost their official status after 10 years or once annual revenue crossed ₹100 crore, often just as their core technology began to mature.
Officials said the extended window will allow founders to focus on engineering and research milestones without the pressure of rushing growth. By keeping startup benefits in place for longer, the government hopes to reduce premature scaling and improve the chances of building globally competitive technologies in areas such as chip design, drug discovery, climate solutions and advanced manufacturing.
The policy change is supported by a ₹1 lakh crore government backed fund that will provide long term patient capital to research driven startups. In addition, private investors from India and the US have launched the India Deep Tech Alliance, committing over ₹8,000 crore to frontier technology ventures, with a global chip maker joining as a strategic advisor. While India still trails global leaders in deep tech funding, officials believe these reforms will attract foreign capital, retain domestic talent and position the country as a serious player in next generation technologies.
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