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India Formally Recognizes Deep Tech Startups With 20-Year Window

The change gives long‑gestation, R&D‑heavy ventures a clearer runway to claim incentives.

Overview

  • A DPIIT gazette notification now in force creates a deep tech sub‑category eligible for recognition up to 20 years or until turnover exceeds Rs 300 crore.
  • For non‑deep tech entities, the 10‑year recognition period remains, while the turnover cap for startup status rises from Rs 100 crore to Rs 200 crore.
  • Deep tech is defined as science‑ or engineering‑led innovation with high R&D intensity, significant IP creation, long gestation periods and heavy capital needs.
  • Eligibility for Section 80‑IAC income‑tax benefits requires certification by an inter‑ministerial board with representatives from DPIIT, the Department of Biotechnology and the Department of Science and Technology.
  • Compliance is tightened by restricting use of funds to core activities and allowing revocation for false information, and certain cooperative societies are now eligible for recognition.