The Indian government has reduced its eligibility requirements for tech startups. The aim is to gain early official recognition, strengthening support for innovation and the country’s deep-tech ecosystem.

The move will open institutional support to startups before they complete three years of existence.

Norm Change to Boost Early Stage Innovation

Earlier, deep-tech startups had to be at least three years old to be officially recognised by the government under the Department of Scientific and Industrial Research (DSIR) programme.

This meant, newer startups could not apply for government recognition, funding or support until they completed three years of operations, even if they had strong ideas or promising technology.

“The relaxation is designed to help early-stage innovators access government support sooner and scale up faster. The previous rule required startups to demonstrate three years of viability to qualify for DSIR recognition and related incentives.”

-said Union Minister Jitendra Singh

Under the IRDPP, recognised startups are eligible for fiscal support, including loans and other benefits to strengthen research and development capabilities.

Now startups can access these benefits early in their lifecycle, impacting their overall journey and growth in the market.

Also Read: ‘Rajasthan Start-Up Summit’ to Draw Global Investors, Tech Leaders

Part of Broader Push to Strengthen India’s Tech Ecosystem

The announcement was made during the DSIR’s 42nd Foundation Day celebrations in New Delhi. The reform will pave the way for greater innovation and deepen India’s position in scientific and technological research.

Officials highlighted that other government bodies, including the Department of Science and Technology (DST), the Council of Scientific and Industrial Research (CSIR), and the Technology Development Board (TDB), are already supporting startups at the early-stage.

This change will align all existing schemes with current demand from deep-tech ventures.

Also Read: Kerala, Germany’s NXTGN Startup Factory Tie Up to Build Deep-Tech Startup Ecosystem

Noting increased participation by women and underrepresented founders in innovation schemes, officials said fiscal incentives such as customs duty exemptions and new collaboration frameworks will be additional tools to foster growth.

The development can be seen as a huge reform to reduce barriers for startups working in advanced technologies.

Hopes remain high for sectors such as AI, quantum computing, robotics & medical devices, which have longer gestation periods and higher capital intensity, which slows their overall growth.