Source: The Hindu
Why in News?
The Union Government has officially defined what constitutes a “deep tech” start-up through a gazette notification issued by the Department for Promotion of Industry and Internal Trade (DPIIT), bringing regulatory clarity to a term widely used but previously undefined.
What is a Deep Tech Start-up?
According to the notification, a deep tech start-up is an enterprise that:
- Develops solutions based on new scientific or engineering knowledge
- Is R&D-intensive
- Operates in areas involving high technical or scientific uncertainty
Key Eligibility Criteria
- R&D Focus:
- Majority of expenditure must be on research and development
- Intellectual Property (IP):
- Must own or be in the process of creating novel IP
- Must take steps to commercialise such IP
- Operational Characteristics:
- Long gestation periods
- Extended development timelines
- High capital and infrastructure requirements
Relaxed Start-up Norms for Deep Tech Firms
| Parameter | Normal Start-up | Deep Tech Start-up |
|---|---|---|
| Maximum age | 10 years | 20 years |
| Turnover limit | ₹200 crore | ₹300 crore |
