9: Official Definition of ‘Deep Tech’ Start-Ups Introduced

• Institutional Recognition: The Department for Promotion of Industry and Internal Trade (DPIIT) notified a formal definition for \'Deep Tech Start-ups\' on February 5, 2026, creating a distinct category within the Startup India ecosystem to support high-frontier innovation. • Core Characteristics: To qualify, an entity must develop solutions rooted in new scientific or engineering knowledge, demonstrate high R&D intensity, and own or be creating significant novel Intellectual Property (IP). • Extended Eligibility Runway: Acknowledging longer gestation periods, Deep Tech firms can now retain \'Start-up\' status for up to 20 years (compared to 10 years for others) and remain eligible until their turnover exceeds ₹300 crore (compared to ₹200 crore for regular startups). • Funding and Support: The definition facilitates targeted access to the Anusandhan National Research Foundation (ANRF) and its ₹1 lakh crore RDI Fund, offering concessional financing and patient capital necessary for capital-intensive development cycles. • Investment Safeguards: To ensure funds are used for innovation, the notification prohibits these startups from investing in speculative assets, real estate, or non-core financial activities during their recognition period. • National Strategic Shift: This move aligns India with global standards (like the US CHIPS Act), aiming to transition the nation from a \'technology adopter\' to a \'technology innovator\' in sectors like quantum computing, AI, and semiconductors. Key Definitions & Provisions • Deep Tech: Technology based on tangible engineering innovation or scientific discoveries and diagnoses. It is characterized by high technical risk and long \'lab-to-market\' timelines. • Intellectual Property (IP): Intangible creations of the human intellect. In the context of Deep Tech, this usually refers to patents, proprietary algorithms, or trade secrets derived from intensive R&D. • Anusandhan National Research Foundation (ANRF): Established under the ANRF Act, 2023, it acts as an apex body to provide strategic direction for scientific research in India, bridging the gap between academia and industry. Conclusion The formalization of \'Deep Tech\' as a legal entity marks a watershed moment in India’s industrial policy. By providing a 20-year policy cushion, the government is incentivizing \'patient capital\' and long-term research, essential for India to lead the Fourth Industrial Revolution. UPSC Relevance • GS Paper 3: Science and Technology- developments and their applications; Indigenization of technology; Effects of liberalization on the economy. • Prelims: DPIIT (Ministry of Commerce); ANRF Act; Differences between regular and Deep Tech startup criteria.