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The Indian government has significantly eased regulations for companies involved in space chip manufacturing (semiconductors) and pharmaceutical research (biotech). Previously, these companies were considered "startups" for only 10 years after their inception. However, the government has now extended this period to 20 years. Such companies often take a long time to develop their technology and become successful. Remaining classified as a "startup" for 20 years will allow them to continue receiving government support, tax breaks, and reduced paperwork for a longer period.

Startup status will now be granted even with revenues of ₹300 crore.
The government has not only extended the deadline for startups but also significantly revised their revenue limits. While previously, companies were stripped of their startup status upon reaching ₹100 crore in revenue, this limit has now been increased to ₹300 crore, allowing them to continue receiving tax breaks and government assistance despite higher revenues. The main reason for this is that companies working on science and deep tech often take years to develop and bring their products to market. The biggest benefit of this change will be that companies that previously faced failures in government documents by being labeled "obsolete" before the technology was complete, signaling to investors that startups would fail, will now be able to focus on their research and technology without any pressure.

Government and private companies jointly create a fund for startups
The government and major investors are now working together to support startups that conduct innovative research and development (R&D).

Government support: The government has created a special fund of ₹1 lakh crore. This fund will provide funds to companies that require capital over a long period of time to complete their research. This is called "patient capital" because investors are not in a hurry to make profits.

Private support: Major Indian and American investor companies (such as Accel and Premji Invest) have formed the "India Deep Tech Alliance." This is a group that has decided to invest more than ₹8,000 crore ($1 billion).
Advice from leading companies: Nvidia, the world's largest chip manufacturer, has joined as an advisor to help guide these startups.

India still lags behind other developed countries.
This government move is increasing investor confidence in Indian startups, but we still lag far behind the world. Indian deep tech companies received approximately $1.1 billion (approximately ₹9,000 crore) in 2024, which has increased to $1.65 billion (approximately ₹13,700 crore) in 2025. This is a significant improvement. But if we compare India to other countries, India still lags far behind:

USA: $147 billion (80 times more than India)
China: $81 billion (nearly 50 times more than India)
India: $1.65 billion

This simply means that money is coming into India and the situation is improving, but we still have a long way to go to catch up with countries like the US and China.

The Path to the Future and Global Competition
Experts believe that these new government regulations will have two major benefits:
1. Increased foreign investor confidence: Major investors say that now investors worldwide will be assured that India's policies are designed for the long term and will not change frequently. This will allow them to invest in India without hesitation.
2. Companies will not leave India: Previously, many startups used to move their headquarters abroad for better facilities. However, now the Indian stock market is also favoring companies with new technologies, so companies will not leave India.

Disclaimer: This content has been sourced and edited from Amar Ujala. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.