Govt Removes 3-Year Rule, Deep-Tech Startups Get Faster Funding

The Indian government has scrapped the mandatory three-year existence requirement for deep-tech startups to qualify under the Department of Scientific and Industrial Research (DSIR) programs. This reform allows early-stage startups to access recognition and funding support—up to ₹1 crore—much sooner, accelerating innovation and commercialization.

Key Highlights of the Reform

• Eligibility Change: Deep-tech startups no longer need to prove three years of existence to qualify for DSIR recognition.
• Funding Access: Startups can now avail financial assistance up to ₹1 crore from DSIR without waiting for the viability period.
• Policy Context: Announced during the 41st/42nd DSIR Foundation Day celebrations by Union Science & Technology Minister Jitendra Singh.
• Objective: To accelerate innovation and help early-stage deep-tech firms scale faster by reducing bureaucratic hurdles.

Why This Matters for Deep-Tech Startups

Before Reform	After Reform
3-year mandatory existence required	No minimum existence period
Recognition under DSIR delayed	Immediate recognition possible
Funding access restricted	Up to ₹1 crore available early
Slower commercialization	Faster innovation-to-market cycle

Implications for the Ecosystem

• Boost to R&D: Startups in AI, quantum computing, biotech, semiconductors, and space tech can now access funds earlier.
• Encourages Risk-Taking: Founders can pursue cutting-edge ideas without worrying about survival for three years before qualifying.
• Global Competitiveness: Aligns India’s innovation ecosystem with global best practices, where early-stage support is critical.
• Investor Confidence: Easier DSIR recognition may attract more venture capital and corporate partnerships.

Potential Challenges

• Quality Control: Removing the viability filter may increase applications from less-prepared startups. DSIR will need stronger evaluation mechanisms.
• Funding Allocation: Ensuring that early-stage funds are used effectively for genuine R&D rather than short-term gains.
• Scalability Risks: Startups may still struggle with infrastructure, talent, and market linkages despite easier access to recognition.

Strategic Takeaway

This reform is a signal of India’s intent to prioritize deep-tech innovation as a driver of economic growth and global competitiveness. For founders, it means less waiting, more building. For policymakers, it’s a bet on early-stage risk-taking as the engine of future breakthroughs.