India's DPIIT has integrated deeptech startups into the Startup India scheme, offering extended tax holidays up to 20 years or Rs 300 crore turnover. This move provides tax exemptions, collateral-free loans, 80% patent fee rebates, and eased procurement rules to fuel long-gestation innovations in AI, biotech, and spacetech.
Policy Overhaul
The February 6 gazette notification defines deeptech as firms developing novel technologies. Unlike regular startups' 10-year or Rs 200 crore cap, deeptech gets 20 years for loss carry-forward, aiding R&D cycles of 7-10 years. Founders hail it for enabling sustained capital without short-term pressures.
Investor Boost
Venture firms like Speciale Invest and Endiya Partners note it aligns with 12-15 year fund lifecycles, boosting India's deeptech appeal. 2025 saw $1.6 billion raised, up 12%; early 2026 funding to Unbox Robotics and JJG Aero continues momentum. Complements Rs 1 lakh crore R&D fund and Fund of Funds.
Key Highlights
Deeptech: 20-year benefits vs 10 for others; turnover cap Rs 300 crore
Tax holiday, collateral-free loans, 80% patent fee cuts included