Startup India 2.0: A Deep Tech Reset

Summary: The 2026 DPIIT Startup Notification grants a 20-year recognition for a newly-introduced category of Deep Tech startups. The notification also expands the eligibility criteria for regular startups, and streamlines the recognition process and compliance frameworks. These startups can now claim enhanced benefits under patent and design laws, such as discounted application fees and expedited examination.

Introduction

The Indian government has updated the definition, eligibility criteria, recognition process, and compliance framework for startups, and introduced a new category of “Deep Tech Startups.” This has significant implications for startups that have or want to build an intellectual property portfolio, as start-ups receive multiple benefits under Indian patent and design rules. The update also signals a policy shift towards supporting high-innovation and research-driven ventures, as the update will directly benefit sectors such as AI, semiconductors, climate tech, biotech, and advanced manufacturing.

On 4 February 2026, the Department for Promotion of Industry and Internal Trade (DPIIT) issued a notification (“2026 DPIIT Notification”), available here, superseding the 2019 start-up notification. This is of huge relevance to Indian patent and design applicants, as startups can claim reduced official fees for both patent and design applications, and also request expedited examination under patent law.

Key changes

While there are multiple changes in the 2026 DPIIT Notification, this note focuses on the changes that will significantly impact patent and design applicants:

1. New category of “Deep Tech” Start-ups:An entity will be considered a Deep Tech Startup if it meets the following criteria:
   • Attributes of a Deep Tech Startup:
     • Developing a solution based on new knowledge or advancements in a scientific or engineering discipline (or multiple disciplines), which is yet to be developed or is currently under development;
     • High proportion of expenditure on research and development (R&D) relative to its revenue or funding;
     • Owns, or is in the process of creating, significant novel intellectual property (IP) and is taking steps toward its commercialization; and
     • Faces extended development timelines, long gestation periods, high capital and infrastructure requirements, and significant technical or scientific uncertainty.
   • Turnover limit:The entity’s turnover in any financial year since incorporation or registration must not exceed INR 300 crore. This threshold is 50% higher than that of a standard startup, considering higher R&D costs, and greater capital and infrastructure requirements.
   • Age of entity:Keeping in mind the long gestation period associated with such ventures, an entity may be recognised as a Deep Tech Startup for up to twenty years from the date of its incorporation or registration.
2. Increase in turnover amount for start-ups:For all other start-ups, i.e., those that are not Deep Tech Startups, the 2026 DPIIT Notification has increased the turnover threshold for any financial year since incorporation or registration from INR 100 crore to INR 200 crore.
3. Multi-State Cooperative Society and Cooperative Society inclusion: Multi-State Cooperative Societies and Cooperative Societies are now included within the ambit of “startup.” Consequently, entities that may now qualify as a startup include:
   • a private limited company;
   • a partnership firm;
   • a limited liability partnership;
   • a Multi-State Cooperative Society registered with the Central Registrar of Cooperative Societies under the Multi-State Cooperative Societies Act, 2002; and
   • a Cooperative Society registered under any State or Union Territory Cooperative Societies Act with the respective Registrar of Cooperative Societies in India.

The 2026 vs 2019 update

A summary of the key differences between the 2019 and 2026 notifications on start-ups is provided in the table below:

Advice for Applicants

Patent and design applicants should reassess their eligibility in light of the revised startup criteria to determine whether they now qualify for startup status. Entities that newly qualify may consider revisiting their IP strategies to:

• file pending patent and design applications under startup status;
• reduce prosecution and maintenance costs across their IP portfolios; and
• leverage expedited examination for commercially important inventions.