Fri Feb 06 12:48:03 UTC 2026: ### Centre Defines ‘Deep Tech’ Startups, Paving Way for Increased R&D Funding

The Story:
On February 6, 2026, the Indian government officially defined “deep tech” startups through a gazette notification by the Department for Promotion of Industry and Internal Trade (DPIIT). This definition aims to clarify which companies qualify for specialized government support, particularly from the ₹1 lakh crore Research and Development Innovation (RDI) Fund managed by the Anusandhan National Research Foundation (ANRF). The move comes after concerns that the number of deep tech startups recognized in India in 2024 was “too low,” at only 10% of the approximately 10,000 recognized startups.

Key Points:

  • A ‘deep tech’ startup is defined as one primarily focused on creating solutions based on new knowledge or advancements in science or engineering.
  • These startups must dedicate the majority of their funds to R&D, own or be developing novel intellectual property, and face long development timelines and high capital requirements.
  • Deep tech startups can be considered a ‘startup’ for up to 20 years with a turnover of up to ₹300 crore, longer than the standard startup definition of 10 years and ₹200 crore.
  • The DPIIT is the final authority on determining deep tech status, guided by an Inter-Ministerial Board of Certification.
  • These startups are restricted from investing in non-core activities like real estate or speculative assets.
  • Companies with RDI funds could receive financing at concessional rates of 2-4% with tenures up to 15 years.

Critical Analysis:
While the other news items appear unrelated on the surface, the definition of “deep tech” highlights a strategic focus on internal development. The timing could be linked to security concerns raised by the Islamabad attacks, subtly redirecting resources toward domestic innovation and away from potentially unstable international collaborations, but this is speculative.

Key Takeaways:

  • The official definition of “deep tech” will likely lead to an increase in the number of startups applying for and receiving government funding and support.
  • This move indicates a strategic government focus on fostering innovation and technological advancement within India.
  • The extended timeframe for deep tech startups acknowledges the long-term nature of R&D and the challenges in commercializing scientific breakthroughs.
  • The investment restrictions are designed to ensure that government funding is used effectively for knowledge production and innovation.

Impact Analysis:
This policy decision has the potential to significantly impact India’s technological landscape. By providing targeted support to deep tech startups, the government aims to boost innovation, create high-skilled jobs, and enhance India’s competitiveness in strategic sectors like artificial intelligence, biotechnology, and advanced materials. The long-term impact could include the development of breakthrough technologies that address pressing societal challenges and drive economic growth. The success of this initiative will depend on the effective implementation of the policy and the ability of the DPIIT to identify and support promising deep tech ventures.

Read More

Related News: