Building a consumer app? You might see revenue in 18 months. Building a quantum computing chip? Try 18 years. India's startup policy, designed in the era of e-commerce and food delivery, has finally caught up with this reality.
What Changed
The Department for Promotion of Industry and Internal Trade (DPIIT) announced sweeping changes to its startup recognition framework. The revenue threshold has been doubled from Rs 100 crore to Rs 200 crore. The recognition period — during which startups enjoy tax breaks, simplified compliance, and preferential government procurement — has been extended from 10 years to 20.
Most importantly, the definition of "startup" now explicitly includes deep technology companies — firms working in artificial intelligence, quantum computing, advanced materials, synthetic biology, and space technology.
Why It Matters
India's startup ecosystem is the third-largest in the world, but it has been overwhelmingly skewed toward consumer internet companies. Deep tech startups, which require years of R&D before generating revenue, were often disqualified from government benefits simply because they took too long to become "commercial."
"You can't judge a semiconductor startup by the same metrics as a grocery delivery app," said Mohandas Pai, the veteran Infosys leader who has been advocating for this change. "This policy finally acknowledges that."
The Ripple Effect
Venture capitalists are already responding. Multiple India-focused deep tech funds have been announced in recent months, and the new policy is expected to accelerate the trend. For India's ambitious goal of becoming a global technology powerhouse, this may be the most important regulatory change of the year.