Startup India aims to increase the income and research of deeptech companies

Government brings deeptech startups under Startup India scheme, offers tax breaks and easier rules

The government has allowed deeptech startups to access benefits under the Startup India scheme with more relaxed regulations, a move that founders and investors say will help these companies raise funds, build advanced technologies and grow faster.

The Department for Promotion of Industry and Internal Trade (DPIIT) has officially brought deeptech startups under the programme, according to a recent gazette notification.

Deeptech startups are defined as companies developing technologies that are still in the research or early development stage. These businesses usually take years to build products and generate revenue.

Longer tax benefits and support

Under the new rules, deeptech startups will get a longer tax holiday and can carry forward accumulated losses for up to 20 years from incorporation or until they reach ₹300 crore turnover, whichever comes first.

In comparison, other startups get this benefit for only 10 years or up to ₹200 crore turnover.

This allows companies to offset losses against future profits and reduce tax liability.

They will also get:

• Collateral-free loans

• 80% reduction in patent filing fees

• Easier public procurement norms

Why this matters

Deeptech companies typically face long development cycles, high capital needs and technical risks. Many take seven to eight years to generate their first revenue.

Founders say the extended support gives them confidence to focus on long-term innovation instead of short-term targets.

“Deeptech companies are built over long cycles and need sustained capital and regulatory stability,” said a Bengaluru-based founder.

Vishesh Rajaram, founding partner at Speciale Invest, said the move signals that India is serious about building intellectual property-driven technology companies for the global market.

Funding momentum rising

Deeptech startups raised around $1.6 billion in 2025, up from $1.4 billion in 2024, according to Tracxn.

Fundraising has continued in early 2026, with companies such as:

• Unbox Robotics

• Whizzo

• JJG Aero

• EtherealX

raising fresh capital.

Government’s larger push

The move is part of broader government support for long-gestation innovation, including:

• ₹1 lakh crore Research Development Innovation Fund

• ₹10,000 crore Fund of Funds

• Antariksh Venture Capital Fund for spacetech

Startups in sectors like AI, biotech, climate tech, semiconductors, spacetech and quantum technology are expected to benefit most.

Investor confidence improves

Investors said earlier many deeptech startups lost their startup status just when they were nearing commercialisation. The new 20-year recognition period allows them to access tax and regulatory benefits throughout their lifecycle.

Experts say this change aligns India with global ecosystems like China and Israel, which already support deeptech with longer investment horizons.

For founders, the message is clear: the government wants to back long-term, high-tech innovation from India.