Government Lays Down Eligibility Criteria For ‘Deep Tech’ Start-ups

Syllabus: GS3/ Economy/ Science and Technology

Context

• The Union Government has officially defined “Deep Tech Start-ups” through a gazette notification issued by the Department for Promotion of Industry and Internal Trade (DPIIT).

What is deep technology?

• Deep tech refers to advanced and disruptive technologies that have the potential to trigger transformative change, and provide solutions for the future.
• The term is used to describe cutting-edge research in nanotechnology, biotechnology, material sciences, quantum technologies, semiconductors, artificial intelligence, data sciences, robotics, 3D printing, etc. 

Eligibility Criteria for Deep Tech Start-up

• According to the DPIIT notification, a deep tech start-up must
  • Spend most of its money on research and development (R&D) activities; 
  • Owns or is in the process of creating significant novel intellectual property (IP) and taking steps to commercialise the same; 
  • Faces extended development timelines, long gestation periods, high capital and infrastructure requirements, and carries large technical or scientific uncertainty.
• A start-up is a company that is less than 10 years old, and has an annual turnover of less than ₹200 crore. However a deep tech company can consider itself a start-up for as long as 20 years and has a turnover of up to ₹300 crore.
• Certification Mechanism: To be counted as a deep tech start-up, companies must apply to the DPIIT for a certificate. The decisions are based on guidance from an Inter-Ministerial Board of Certification, comprising:
  • Joint Secretary, DPIIT (Convener)
  • Representative from Department of Science and Technology (DST)
  • Representative from Department of Biotechnology (DBT)
• It also prohibits a defined start-up from investing in activities that are not directly connected to its core mandate of working and creating new knowledge like investing in real estate or speculative assets.

Significance of India’s Deep-Tech Ambitions

• Global Leadership: It positions India as a trusted R&D hub in the “China+1” global landscape, leveraging its massive STEM talent pool to lead in frontier technologies like Quantum Computing and 6G.
• Technological Sovereignty: Reduces critical reliance on foreign imports for national security, defense, and space, ensuring India isn’t vulnerable to global supply chain disruptions.
• Solving Local Challenges: Enables India-first solutions for massive social hurdles, such as AI for rural healthcare, precision agriculture for food security, and green hydrogen for energy independence.
• Economic Value: A robust deep-tech ecosystem enables India to move up the global value chain, shifting from low-cost services and assembly-based manufacturing to high-value research, design and intellectual property creation.

Challenges 

• Deep tech often requires large upfront investment and long development timelines, making it less attractive to traditional venture capital.
• Limited access to specialised labs, supercomputing and testing facilities slows innovation. 
• A shortage of specialised research talent and relatively low industry‑linked R&D spending compared with global peers hinder progress. 
• Deep tech solutions often face regulatory and adoption barriers that delay commercialisation.

Way Ahead 

• India needs to strengthen R&D, improve IP and regulatory support To unlock deep tech’s potential,
• There is a need to  build talent through industry‑academia collaboration, promote global partnerships, and encourage market adoption. 
• With policy backing and funding, deep‑tech startups are set to drive innovation and economic growth.

Source: TH