Officials announce the launch of Startup India’s second phase on January 16, with a major focus on deep technology startups. These startups will operate in areas like semiconductor chips, quantum and high-performance computing, artificial intelligence, and cybersecurity. This marks a significant stride nearly eight years after the initiative’s inception.
Greater Emphasis on Deep Tech in Startup India Phase 2
An unidentified official states that the initial phase focused on consumer internet and service startups. However, the next wave, both in India and globally, anticipates innovation and value emerging from deep tech. The official suggests that these startups will be fewer but substantially more valuable. Launched eight years ago, the Startup India initiative aimed to support young entrepreneurs by aiding rule compliance, expediting patent processes, and granting tax exemptions for eligible entrepreneurs and startups, addressing income and capital gains.
Another official notes that as the second phase centres on deep-tech startups requiring additional time and funds to establish and achieve profitability, the expected policy support will surpass what has been provided thus far.
“We have learned from the adjustments made to the initial Startup India plan. In the second phase, there could be increased support for startups, including stable policy and taxation, improved valuation norms, and initiatives for research and collaboration with industry and academia,”
Government Eyes Global Support for Startups for R&D
Officials suggest that the government is poised to aid eligible startups in securing research and development support from global institutions. The official further indicates that the Funds of Funds for Startups will see a substantial increase in corpus and an extended gestation period to accommodate these developments.
41,000 Startups Recognized Over the 2016-2021 Period
The Department for Promotion of Industry and Internal Trade acknowledged over 41,000 startups between 2016 and 2021 across 54 sectors and 224 sub-sectors. The Centre proactively amended 39 policies during this time to boost the ease of doing business, facilitate capital acquisition, and streamline compliance norms.
The official stated,
“One of the officials mentioned earlier also emphasized encouraging deep tech startups to relocate to tier-2 and tier-3 towns, as their operational presence in metro cities or tier-1 towns is not deemed essential.”