Government Scraps 3-Year Rule to Fast-Track Deep-Tech Startups

In a policy shift aimed at accelerating India’s deep-tech startup pipeline, the government has removed the mandatory three-year existence requirement for startups seeking recognition and financial support under the Department of Scientific and Industrial Research (DSIR).

The announcement was made by Dr Jitendra Singh, Union Minister of State (Independent Charge) for Science & Technology, during the 41st Foundation Day of DSIR, signalling a sharper focus on enabling early-stage innovators who often struggle to access institutional funding.

The relaxation allows deep-tech startups to seek DSIR recognition and loan support without waiting to complete three years of operations, an eligibility criterion that previously filtered out many first-time founders working on frontier technologies.

Why the Change Matters for India’s Deep-Tech Pipeline

According to Dr Singh, the reform complements the ₹1 lakh crore Research, Development and Innovation (RDI) Fund, which primarily targets startups that have already reached a certain level of technological maturity.

“For early-stage innovators or startups, a wide basket of schemes already exists across departments such as DST, CSIR, TDB and others. The removal of the three-year existence requirement is a significant incentive to help deep-tech startups scale faster, even before they are fully on their own,” he said.

Until now, DSIR-linked financial assistance, sometimes extending up to ₹1 crore through CSIR-backed programmes, required startups to demonstrate sustainability over a minimum three-year period. That condition has now been withdrawn, while retaining evaluation benchmarks tied to technological readiness.

DSIR–CSIR Coordination and the Push for Faster Commercialisation

Dr Singh described the DSIR–CSIR relationship as an “intergenerational symbiosis”, highlighting how policy facilitation and scientific research increasingly move in tandem to support commercialisation.

He emphasised that DSIR’s role has evolved beyond certification to include fiscal incentives such as customs duty exemptions, making government-supported R&D more accessible to startups, MSMEs, and industry collaborators.

This coordination, he noted, is critical to translating interdisciplinary research into deployable technologies, particularly in sectors such as AI, robotics, space, and advanced manufacturing.

Women's Participation and Regional Innovation Gain Visibility

The minister also pointed to a structural shift in India’s innovation ecosystem, citing participation by more than 10,000 women beneficiaries across DSIR schemes, including over 55 women-led self-help groups.

This growing inclusion aligns with DSIR’s broader efforts to decentralise innovation and support grassroots entrepreneurship beyond major metros.

New Frameworks and Platforms Launched

The Foundation Day event also marked the launch of multiple initiatives designed to strengthen the innovation-to-market pathway:

• DSIR Guidelines for Recognition of In-House R&D Centres of Deep-Tech Startups, incorporating the relaxed eligibility norm

• PRISM Network Platform – TOCIC Innovator Pulse, to strengthen innovation pipelines

• Creative India 2025 under the PRISM scheme

• DSIR Disaster Management Plan, focused on preparedness and resilience

Several MoUs were also exchanged, including agreements related to Earth Sciences fellowships, technology-led skill development for rural women, and transfer of technologies from CSIR labs to industry partners under the Common Research and Technology Development Hubs programme.

From Self-Reliance to Global Dependence

Placing the reform in a larger geopolitical context, Dr Singh said India has moved beyond the narrative of Atmanirbhar Bharat.

“We are not only self-reliant; we are making others rely on us,” he remarked, citing exports in vaccines, medical devices, and indigenous technologies as evidence of India’s growing scientific credibility on the global stage.

Concluding the event, the minister reiterated that the removal of the three-year eligibility condition is driven by a “noble intent to accelerate and sustain new startups”, expressing confidence that innovators will use the opportunity responsibly.