To support innovation, the government extends startup benefits to deep-tech firms, raising the recognition period to 20 years and lifting turnover caps.
The Indian government has revised its startup framework, expanding the definition to include deep-tech firms and extending the recognition period for such businesses to 20 years, up from 10 years.
The move, announced in a gazette notification on February 4, 2026, aims to better support research-intensive startups in science and engineering.
Under the revised guidelines, deep-tech startups are defined as entities that focus on scientific or engineering innovations requiring significant research and development (R&D) investment.
These firms must own or be in the process of creating novel intellectual property with plans to commercialise it. The turnover cap for deep-tech startups has been raised to ₹3 billion, compared to ₹2 billion for regular startups.
This update supersedes the February 2019 startup framework and introduces separate eligibility, tax, and compliance conditions for deep-tech companies. The new rules recognise the longer development cycles and capital-intensive nature of deep-tech ventures, which often face higher technical uncertainties.
Startups can apply for recognition through the Department for Promotion of Industry and Internal Trade (DPIIT) portal. Applicants must submit their incorporation documents and a detailed write-up on their innovation or scalability. Deep-tech firms, in addition to these requirements, must provide extra documentation demonstrating their focus on R&D and intellectual property creation.
The recognition process for both deep-tech and regular startups will continue to be monitored by DPIIT. However, the exit conditions differ: regular startups lose their recognition after 10 years or if their turnover exceeds ₹2 billion, while deep-tech startups lose their status after 20 years or if their turnover surpasses ₹3 billion.
Startups recognised under the framework, including deep-tech firms, are eligible for income-tax exemptions under Section 80-IAC of the Income-tax Act, subject to certification by the Inter-Ministerial Board.
However, the use of funds is restricted, with prohibitions on investments in residential real estate and speculative assets, ensuring funds are used strictly for business-related activities.
