India extends startup status and raises threshold for deep tech

India updated its startup framework this week to better suit science- and engineering-led companies. Deep tech ventures will now be treated as startups for up to 20 years, and the revenue threshold for startup-specific tax, grant and regulatory benefits has been raised to ₹3 billion from ₹1 billion.

The change is part of a wider push that pairs regulatory reform with public capital, including the ₹1 trillion Research, Development and Innovation (RDI) Fund aimed at expanding patient financing for R&D-driven firms. Founders welcome the longer runway, saying it reduces an artificial pressure point that once judged science-led firms on policy timelines rather than technological progress.

Vishesh Rajaram, founding partner at Speciale Invest, said the move removes a “false failure signal” and “reduces friction in fundraising, follow-on capital, and engagement with the state.” He added that the biggest remaining constraint is access to deeper funding at Series A and beyond, especially for capital-intensive companies.

India