The government’s decision to relax the mandatory three-year waiting period for recognising deep-tech start-ups under its schemes reflects an understanding that deep-tech ventures operate on fundamentally different timelines compared with consumer tech start-ups, stakeholders said.
The Department of Scientific & Industrial Research (DSIR) has removed the three-year existence requirement under its Industrial Research and Development Promotion Programme (IRDPP). Deep-tech investors and entrepreneurs see this move as a signal that the government is ready to support early-stage R&D and help transform pioneering research into viable businesses.
Addressing Capital-Intensive Needs of Deep Tech
Deep-tech companies are capital-intensive and research-heavy, often remaining pre-revenue far longer than start-ups in other sectors. While government funding through grants and loans has existed, the previous three-year eligibility condition restricted access to early-stage support.
“Deep-tech innovation does not follow a linear, calendar-driven path,” said Vishesh Rajaram, Co-Founder and Managing Partner, Speciale Invest. “This move will accelerate lab-to-market journeys, allow founders to validate breakthrough technologies earlier, and crowd in private capital with confidence. It is a pragmatic reform that strengthens India’s ambition to build globally competitive deep-tech companies from day zero.” The policy also provides early access to non-dilutive capital and strengthens founder credibility in the eyes of investors.
Government Backing and Incentives
Union Minister Dr Jitendra Singh described the relaxation as a step to accelerate and sustain new deep-tech start-ups, while maintaining evaluation standards based on technological maturity.
Under DSIR’s IRDPP, recognised start-ups can access:
*Grants of up to ₹1 crore
*Fiscal and tax-related incentives
*Duty-free import of specified R&D equipment and instruments
Many other government R&D programmes—including DST, DBT, CSIR, TDB, BIRAC, and sectoral initiatives—require or prefer DSIR recognition to qualify. To date, around 865 start-ups have been recognised under IRDPP.
Impact on Hardware-Intensive and Research Startups
Natarajan Malupillai, Group CEO at IITM Research Park, highlighted that early DSIR recognition reduces upfront capital expenditure, facilitates customs duty exemptions for R&D imports, and lowers iGST rates. This, he said, accelerates prototyping and pilot deployments for hardware-intensive ventures.
Entrepreneurs in long gestation fields, such as chip design, welcome the change. Shashwath TR, co-founder and CEO of Mindgrove Technologies, explained that chip ventures typically require 3–5 years from architecture design to production-ready silicon, with substantial upfront investment for prototyping, simulation tools, and IP licensing. Removing the three-year norm allows such start-ups to access critical early-stage support.
Talent Retention and Workforce Development
The policy may also help retain quality talent in India. Amit Chand, Founder & Managing Partner, BYT Capital, noted that upfront loan support allows founders to design proper compensation for top PhDs and engineers, reducing reliance on sweat equity or goodwill. This strengthens India’s domestic deep-tech ecosystem and reduces talent migration to global tech hubs.
Recommendations for Further Support
Entrepreneurs advocate for additional measures to complement DSIR’s relaxation:
*Establish shared testing and production infrastructure to reduce redundant capital expenditure
*Introduce milestone-based funding mechanisms tied to technical achievements
*Streamline regulatory approvals for technology demonstrations
As reported by thehindubusinessline.com, Moin SPM, Co-founder & COO of Agnikul Cosmos, emphasized that such initiatives would further accelerate innovation cycles and enhance the global competitiveness of India’s deep-tech start-ups.
