India Extends Deep Tech Startup Benefits to 20 Years, ₹3B Threshold

The Indian government has extended deep tech startup benefits to 20 years and raised the revenue threshold for tax, grant, and regulatory support from ₹1B to ₹3B, aiming to align policy with the long development cycles of science- and engineering-led firms. These changes, part of a ₹1T R&D Innovation Fund and a new India Deep Tech Alliance co-founded by U.S. and Indian investors, seek to reduce fundraising friction and provide patient capital. Funding rebounded to $1.65B in 2025 from $1.1B in 2023–2024 after a peak of $2B in 2022, per Tracxn, signaling longer-horizon investing. India’s deep tech raised $8.54B through 2025, versus $147B in the U.S. and $81B in China that year. Global investors see the policy as a positive mid-term signal, but access to follow-on capital and international procurement remains key to scaling and retaining operations in India.