India has fundamentally restructured its startup framework to support "deep tech" sectors like semiconductors, space, and biotech.
Recognizing that science-led ventures require longer gestation periods, the government has doubled the "startup" eligibility period to 20 years. Additionally, the revenue threshold for tax and regulatory benefits has been tripled to ₹3 billion ($33.12 million).
This policy shift aims to eliminate "false failure signals" where pre-commercial companies previously lost support due to arbitrary timelines. Complementing this is the ₹1 trillion ($11 billion) RDI Fund, designed to provide "patient capital" through grants, equity, and credit. This public push is mirrored by the private sector with the launch of the India Deep Tech Alliance, a $1 billion-plus coalition including Accel and NVIDIA.
While India's deep tech funding saw a 2025 rebound to $1.65 billion, it remains a fraction of the U.S. ($147B) and China ($81B). However, investors believe these long-horizon reforms provide the regulatory certainty needed to keep talent domestic.
The ultimate benchmark for success will be whether India can produce a critical mass of globally competitive deep tech firms over the next decade.
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