The Indian startup ecosystem has reached a pivotal turning point with the release of the DPIIT Gazette Notification 2026. Issued by the Ministry of Commerce and Industry on February 4, 2026, this notification introduces a formal legal framework for a specialized class of innovation: DPIIT DeepTech startups.
By moving away from a uniform approach for all businesses, the government is acknowledging that companies working on breakthrough scientific discoveries require more time and capital than traditional digital platforms. This article explores how the updated DeepTech policy in India redefines eligibility and offers a more robust support system for high-impact innovation.
The Landmark Shift in the DPIIT Gazette Notification 2026
For years, Indian startups were governed by a standard set of rules regarding their age and revenue. However, the DPIIT Gazette Notification 2026 officially replaces the older 2019 regulations to accommodate the unique lifecycle of deep technology.
The primary highlight of this notification is the clear distinction between a standard startup and a specialized entity. While a regular startup is recognized for 10 years, DPIIT DeepTech startups now enjoy a recognition period of up to 20 years from their date of incorporation. This extension is a critical component of the updated DeepTech policy India, providing founders the long runway needed for complex research and development.
Read Also: IP Portfolio Strengthening Strategies to Maximize Business Value in 2026
Revised Turnover Limits: Scaling Higher and Longer
A significant hurdle for growing companies has always been the revenue ceiling. Under the DPIIT Gazette Notification 2026, the turnover limit for standard startups remains at 200 crore rupees. However, recognizing the high infrastructure costs associated with advanced engineering, the government has increased the turnover limit for DPIIT DeepTech startups to 300 crore rupees.
This change ensures that successful firms do not lose their startup benefits, such as tax exemptions, just as they begin to scale their breakthrough technologies.
Identifying DPIIT DeepTech Startups: The IPR and R&D Criteria
To qualify under the specialized DeepTech policy in India, an entity must demonstrate specific attributes during the application process. According to the DPIIT Gazette Notification 2026, these include:
- The entity must work on solutions based on new knowledge or advances in scientific or engineering disciplines.
- It must maintain a high percentage of expenditure on research and development activities compared to its total revenue or funding.
- The startup must own or be in the process of creating significant novel intellectual property and demonstrate steps toward commercializing it.
- The business must face extended development timelines and substantial technical or scientific uncertainty.
These strict legal definitions ensure that the benefits of the DeepTech policy India are reserved for truly transformative ventures.
Compliance and Fund Utilization for DPIIT DeepTech Startups
The DPIIT Gazette Notification 2026 is not just about benefits; it also carries strict compliance requirements. Recognized entities must deploy their funds primarily toward core business activities, innovation, and research.
The notification explicitly prohibits DPIIT DeepTech startups from investing in non-productive assets during their recognition period.
These restrictions include:
- Residential houses or land not used for the startup’s own business purposes.
- Loans and advances to other parties, unless lending is a substantial part of the business.
- Luxury transport means like yachts, aircraft, or high-value motor vehicles, unless used for operations.
- Jewellery or other luxury assets, unless held as stock in trade.
Read Also: Mark Cuban Warns: AI will make Companies Stop Filing for Patents
Conclusion: The Future of DeepTech Policy in India
The DPIIT Gazette Notification 2026 represents a sophisticated evolution of the regulatory landscape in India. By doubling the recognition period and significantly raising the turnover caps, the government is signaling its commitment to becoming a global hub for deep technology.
For founders, these changes offer the financial and temporal stability required to solve the world’s hardest problems. As DPIIT DeepTech startups begin to leverage these new rules, we can expect a surge in high-value IP Monetization and Protection and long-term economic wealth creation originating from India.