Why Did the Government Relax the Three-Year Rule for Deep-Tech Startups?

Marking the 42nd Foundation Day of the Department of Scientific and Industrial Research (DSIR) under the Ministry of Science & Technology (MoST), Union Minister of State (Independent Charge) Dr. Jitendra Singh announced a major policy reform aimed at accelerating India’s deep-tech startup ecosystem.

The government has removed the mandatory three-year existence condition for deep-tech startups seeking recognition under DSIR’s Industrial Research and Development Promotion (IRDP) Programme.

What this means: Earlier, startups had to exist for at least three years to qualify for DSIR recognition and benefits. This requirement has now been completely removed, allowing early-stage innovators and first-time entrepreneurs to access support much earlier.

How Will This Decision Impact India’s Startup Ecosystem?

The move is expected to give early momentum to new and first-generation startups, particularly in deep-tech sectors such as advanced manufacturing, AI, semiconductors, robotics, space, and critical technologies.

Dr. Jitendra Singh said the reform reflects the Government’s trust in India’s innovators and its confidence in their intent, sustainability, and technological capability, even at early stages.

“This is a significant incentive to help deep-tech startups scale faster, even before they are fully on their own,” the Minister said.

What Is the ₹1 Lakh Crore RDI Fund and Who Does It Support?

The Minister explained that the recently announced ₹1 lakh crore Research, Development and Innovation (RDI) Fund has generated unprecedented enthusiasm nationwide.

• What is the RDI Fund? It is a government-backed fund designed to support startups and enterprises that have reached a certain level of technological maturity, especially those closer to commercialisation.

• Why the rule change was needed: Early-stage startups often do not qualify for RDI funding because they are still in the idea, prototype, or pilot phase. Removing the three-year condition under DSIR fills this critical early-stage gap.

What Support Already Exists for Early-Stage Startups?

Dr. Jitendra Singh clarified that multiple government departments already run early-stage startup schemes, including:

• DST (Department of Science & Technology)

• CSIR (Council of Scientific & Industrial Research)

• TDB (Technology Development Board)

These schemes support idea-stage and prototype-stage innovators, while DSIR recognition helps startups scale, collaborate with industry, and access fiscal incentives.

What Changed in CSIR’s Funding Conditions?

The Minister revealed that CSIR had been providing financial assistance earlier as well, including loans up to ₹1 crore in some cases. However, these were subject to a mandatory three-year sustainability and viability requirement.

• Key reform: That condition has now been completely removed.

Dr. Singh described this as a “major incentive with a noble intent”—to accelerate and sustain deep-tech startups before they are fully established, while still maintaining robust evaluation standards linked to technological maturity.

How Are DSIR and CSIR Connected?

Congratulating the DSIR family on its 42nd Foundation Day, the Minister described the relationship between DSIR and CSIR as an “intergenerational symbiosis.”

• What does this mean?

  • DSIR originated from CSIR

  • Today, CSIR’s technology transfers, MoUs, and industry partnerships are enabled and facilitated by DSIR

  • Together, they convert interdisciplinary science into intergenerational collaboration

The Minister likened the relationship to a joint family, where each generation strengthens the other.

Has India Moved Beyond “Atmanirbhar Bharat”?

According to Dr. Jitendra Singh, India has now moved beyond self-reliance and entered a phase where other nations depend on Indian capabilities.

He cited examples from:

• Vaccines

• Medical devices

• Indigenous technologies

India has transitioned from import dependence to exports worth several crores, signalling global acceptance of Indian science and technology.

“We are not only self-reliant; we are making others rely on us,” he said.

What Are DSIR’s Four Core Pillars?

The Minister highlighted DSIR’s four foundational pillars:

1. Science

2. Industry

3. Research & Development (R&D)

4. Technology Transfer

He emphasised that research cannot be sustained without industry as an early partner, and that DSIR’s role has expanded beyond certification.

• Additional DSIR incentives include:

  • Customs duty exemptions

  • Fiscal incentives for R&D

  • Support for MSMEs and startups collaborating with government-backed research institutions

How Is DSIR Supporting Women in Innovation?

A key highlight of the event was women’s participation in India’s innovation ecosystem.

Key data:

• Over 10,000 women beneficiaries currently avail DSIR schemes

• More than 55 women-led Self-Help Groups (SHGs) are supported

Dr. Singh described this as a healthy and irreversible shift in India’s innovation culture.

What New Initiatives Were Launched on DSIR Foundation Day?

Four major initiatives were launched to mark the occasion:

1. DSIR Guidelines for Recognition of In-House R&D Centres of Deep-Tech Startups

   • Formally incorporating the removal of the three-year condition

2. PRISM Network Platform – TOCIC Innovator Pulse

   • Aimed at strengthening innovation pipelines

3. Creative India 2025 under the PRISM Scheme

   • To promote innovation-led entrepreneurship

4. DSIR Disaster Management Plan

   • Enhancing preparedness and institutional resilience

What Key Agreements and MoUs Were Signed?

Several important agreements were exchanged in the presence of senior dignitaries:

• Technology Development and Utilisation Programme for Women (TDUPW)

  • Establishment of a Skill Satellite Centre at Dhamtari, Chhattisgarh

  • Collaboration with NIT Raipur

  • Focus on technology-led skill development and livelihood generation for rural women

• Transfer of Technology (ToT) Agreements

  • For technologies developed under Common Research and Technology Development Hubs (CRTDH)

  • Supported to CSIR-CEERI, Pilani

  • Licensed to industry partners

  • Strengthening MSME-focused R&D infrastructure nationwide

What Role Does DSIR Play in India’s Innovation System?

In her address, Dr. N. Kalaiselvi highlighted DSIR’s role in recognising:

• In-house R&D centres

• Scientific and Industrial Research Organisations (SIROs)

• Publicly funded research institutions

She noted DSIR’s unique structure, comprising:

• A government department

• An autonomous organisation like CSIR

• Two PSUs — CEL and NRDC

This structure enables DSIR to act as a bridge between government, academia, and industry.

Why Is Technology Sovereignty Important Today?

Prof. Ajay Kumar Sood stressed the importance of technology sovereignty in the current geopolitical environment.

He highlighted:

• The need to scale innovations from lab to market

• Strengthening private-sector R&D, especially at TRL-4 and above

🔹 What is TRL?Technology Readiness Level (TRL) measures how close a technology is to real-world application.

He also mentioned:

• National Technology Readiness Assessment Framework (NTRF)

• Platforms like Manthan and Uthaan

• Greater participation of Tier-II and Tier-III institutions

Why Is This Reform a Turning Point for India’s Innovation Future?

Concluding the event, Dr. Jitendra Singh said DSIR’s work aligns with national missions in:

• Energy transition

• Critical & emerging technologies

• Manufacturing

• Semiconductors

• Robotics

• Artificial Intelligence

• Space

He reiterated that the relaxation of the three-year criterion is driven by a “noble intent to accelerate and sustain new startups”, and expressed confidence that Indian innovators will use this opportunity responsibly.

“This Foundation Day is not just a celebration of the past, but a decisive step towards building a future-ready, technology-sovereign India.”