Yes. India has created a separate “Deep Tech Startup” category under the Department for Promotion of Industry and Internal Trade (DPIIT) framework. Gazette Notification G.S.R. 108(E), issued on February 4, 2026, allows a recognised deep-tech startup to remain within the startup-recognition framework for up to 20 years and to have turnover of up to ₹300 crore in any financial year since incorporation or registration.
That is an eligibility extension, not a 20-year tax exemption or automatic grant. Recognition is a gateway; tax deductions, government funding, procurement opportunities and sector approvals each have additional rules.
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What changed in India’s startup rules?
DPIIT’s G.S.R. 108(E) superseded the February 19, 2019 notification and created the Deep Tech Startup category. The government says the change reflects the longer development cycles, heavier research spending and larger capital requirements of science- and engineering-led businesses. The notification was listed by DPIIT on February 5, 2026.
| Issue | General startup | Recognised Deep Tech Startup |
|---|---|---|
| Recognition period | Up to 10 years | Up to 20 years |
| Turnover ceiling | ₹200 crore in any financial year since incorporation or registration | ₹300 crore in any financial year since incorporation or registration |
| Core requirement | Innovation, improvement, or a scalable model with high employment or wealth-creation potential | The general startup requirement plus the specified deep-tech attributes |
| Eligible forms | Private limited company, registered partnership, LLP, multi-state cooperative society, or state/Union territory cooperative society | Same eligible forms |
| Legal instrument | G.S.R. 108(E), dated February 4, 2026 | |
The ordinary startup turnover ceiling was also raised from ₹100 crore to ₹200 crore. The 20-year period and ₹300-crore ceiling apply only when DPIIT recognises the entity in the Deep Tech Startup category; they are not automatic rights for every company using advanced technology.
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Check the DPIIT gazette listing and the Startup India recognition page for current portal instructions.
What qualifies as “deep tech”?
The framework is based on the technology and evidence, not a sector label. A company must first satisfy the ordinary startup definition and then demonstrate the relevant deep-tech characteristics:
- New scientific or engineering knowledge: the solution depends on advances in one or more scientific or engineering disciplines.
- Material R&D intensity: a high proportion of spending is devoted to research and development relative to revenue or funding.
- Novel intellectual property or know-how: the company owns significant novel IP, or is actively creating and commercialising it.
- Substantial technical uncertainty and long development: the work involves meaningful scientific or engineering risk, extended development or gestation, and potentially major capital or infrastructure needs.
DPIIT determines these issues from the information and documents submitted under its framework and guidelines. Using machine learning, cloud services or generative-AI tools does not, by itself, establish deep-tech status.
Who can apply?
An applicant generally must:
- be incorporated or registered in India in one of the eligible legal forms;
- remain within the applicable recognition period and turnover ceiling;
- work toward innovation, development or improvement of products, processes or services, or operate a scalable model with high employment or wealth-creation potential; and
- not have been formed by splitting up or reconstructing an existing business.
A company older than 10 years can still be considered for deep-tech recognition if it is within 20 years of incorporation, remains below ₹300 crore turnover and meets the substantive criteria. A recognised deep-tech startup that exceeds ₹300 crore turnover in a financial year no longer fits that category under the notification.
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The current Startup India recognition form asks applicants to explain the technology rather than simply select “AI,” “space,” “biotech” or “semiconductors.” Useful evidence can include the following.
Novel system or process
- Patent filings or grants, industrial designs or semiconductor layouts.
- Prototypes, pilots, field trials, sandbox tests or regulatory testing.
- Records showing continuing research and development.
R&D intensity and capital needs
- A chartered-accountant-certified R&D expenditure statement for the last three years, or since incorporation.
- An investor or alternative investment fund letter earmarking money for long-term R&D.
- Government or private R&D grant documents.
- DSIR recognition or a memorandum of understanding with a recognised research institution.
Proprietary IP or know-how
- Patent filings or grants, industrial designs or relevant journal publications.
- A self-certified list of technical staff with qualifications or publications.
- Technology-transfer or IP-licensing agreements with academic or research institutions.
Technical uncertainty
- Independent feasibility studies or technical assessments.
- Assessments from accredited laboratories, DST-listed R&D institutions, institutes of national importance or government-empanelled bodies.
- Internal technical reports certified by the chief executive, covering experiments, testing, benchmarks and global comparisons.
A patent application or investor backing alone is not enough. The application should connect the evidence to the product’s technical novelty, R&D effort, proprietary position and unresolved engineering or scientific risks.
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How to apply for DPIIT deep-tech recognition
- Confirm the Indian entity form, incorporation date, turnover history and ordinary startup eligibility.
- Use the Startup India/DPIIT recognition process and select the Deep Tech category where applicable.
- Prepare a clear explanation addressing novelty, R&D intensity and capital needs, proprietary IP or know-how, and technical uncertainty.
- Upload supporting records, submit the self-certified application and respond to any portal request for clarification.
- After approval, download or update the recognition certificate and retain the underlying evidence.
- Make separate applications for tax deductions, grants, funds, procurement programmes, patents or sector approvals.
Startup India warns that recognition can be revoked if it was obtained with false information or without the relevant documents. It also says DPIIT has not appointed agencies, representatives or franchises to issue recognition certificates, so be cautious of resellers promising guaranteed approval.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What recognition can unlock—and what it cannot
DPIIT recognition may provide access to a package described by Startup India, including:
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- the ability to apply for specified tax benefits;
- self-certification under specified labour and environmental laws;
- fast-tracked examination of startup patent applications and other IP support;
- startup-related public-procurement treatment; and
- eligibility to seek government startup schemes and funding programmes.
Each item has its own conditions. The Income Tax Department expressly states that DPIIT recognition does not automatically make a company eligible for the Section 80-IAC deduction. A grant or fund has its own sector, stage, technical and financial tests, while procurement support does not guarantee a government contract. Recognition also does not remove company-law, tax, data, export-control, environmental, clinical, defence, space or other sector-specific obligations.
Related deep-tech policy moves in 2026
DSIR recognition
On January 4, 2026, the government announced a relaxation of the mandatory three-year existence condition for deep-tech startups seeking recognition under the Department of Scientific and Industrial Research’s Industrial Research and Development Promotion Programme. This is a DSIR measure, separate from the DPIIT startup-definition notification. See the PIB announcement for the announced change.
Startup India Fund of Funds 2.0
Operational guidelines for Startup India Fund of Funds 2.0 introduced segmentation for alternative investment funds, including deep-tech-focused funds, micro-venture-capital funds, innovative and technology-led manufacturing funds, and sector- or stage-agnostic funds. This changes a funding channel; it is not a direct grant to every recognised startup. Details are in the PIB release.
Founder decision checklist
Before applying, ask:
- Is the core technology based on genuinely new scientific or engineering work, rather than only an existing API or software stack?
- Can the company show sustained, material R&D spending relative to revenue or funding?
- Does it own, license or actively create protectable IP or proprietary know-how?
- Are there meaningful technical risks that require experiments and validation?
- Does development involve long prototyping, certification, clinical, industrial or infrastructure cycles?
- Can patents, laboratory reports, grant records, institutional agreements, technical reports or investor letters support the claims?
- Is there a credible route from research to a product, licence, deployment or revenue?
Review the latest portal guidance before filing. DPIIT published an updated benefits compendium in 2026, and scheme-level rules can change.
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Bottom line for founders and investors
India’s February 4, 2026 reform gives qualifying deep-tech companies more time and a higher turnover ceiling to mature inside the DPIIT startup framework. It improves the eligibility runway for research-heavy businesses, but it does not guarantee tax relief, funding, procurement, laboratory access, certification or commercial success. The practical advantage goes to companies that can document real scientific or engineering novelty, sustained R&D, proprietary technology and the uncertainty inherent in bringing it to market.
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