RT team
The Government of India has ushered in the second phase of its Startup India program on January 16, 2024, pivoting its focus towards deep technology startups. This new phase diverges from the initial concentration on consumer internet and service-oriented startups, signaling a shift towards more sophisticated technological innovations in areas such as semiconductor chips, quantum computing, artificial intelligence, and cybersecurity.
Launched eight years ago, Startup India has been pivotal in assisting young entrepreneurs by streamlining regulatory processes, accelerating patent applications, and providing tax benefits. The second phase is set to demand more policy support, recognizing that deep-tech startups often require extended time and resources to achieve profitability. Anticipating these needs, the government plans to refine policies, improve valuation standards, and strengthen research collaborations with industry and academia.
Moreover, this phase will likely see an increase in the Funds of Funds for Startups and a longer period of support. Reflecting a strategic shift, the government is also encouraging these high-tech startups to branch out into smaller cities, moving beyond the traditional necessity of being located in major metropolitan areas. This approach aims to distribute the technological and economic benefits more broadly across various regions.
