Business Update | Centre Eases DSIR Regulations, Removes 3-Year Eligibility Requirement for Deep-Tech Startups

Major Relaxation for Deep-Tech Startups: A Step Forward for Innovation

In a significant move for India’s burgeoning deep-tech startup ecosystem, the Central Government has announced a major relaxation that could transform the landscape for early-stage innovators. As of January 6, 2023, the mandatory three-year existence requirement for recognition under the Department of Scientific and Industrial Research’s (DSIR) Industrial Research and Development Promotion Programme has been lifted. This crucial change aims to offer budding entrepreneurs the necessary support to scale their deep-tech projects without the weight of existing operational constraints.

The Minister’s Vision: Accelerating the Startup Ecosystem

Union Minister of State (Independent Charge) for Science and Technology, Jitendra Singh, shared insights into the motivation behind this policy shift. He emphasized that the objective is to accelerate India’s startup ecosystem, allowing innovators to gain early momentum. This initiative represents a significant leap toward nurturing pioneering projects within deep-tech sectors that often require extensive research and development investment upfront.

Singh pointed out that the Rs 1 lakh crore Research, Development and Innovation (RDI) Fund has already sparked enthusiasm across the country. However, it primarily supports startups that have achieved a specific level of technological maturity. By eliminating the three-year existence requirement, the government aims to encourage fresh ideas even at their inception.

Existing Support Mechanisms for Deep-Tech Startups

The Minister acknowledged that various departments, including the Department of Science and Technology (DST), Council of Scientific and Industrial Research (CSIR), and Technology Development Board (TDB), have already set up numerous support schemes for early-stage startups. With the removal of the existence requirement, startups can now access these resources and scale their operations before they reach self-sustainability.

Previously, CSIR had been offering financial assistance tied to a minimum operational duration of three years. By discarding this condition, the government has opened new avenues for funding and support that can be critical for deep-tech ventures, which often face hurdles unique to their technical nature.

Strengthening the Innovation Ecosystem and Gender Inclusivity

During a recent event, Singh congratulated the DSIR family on their Foundation Day and highlighted the symbiosis between DSIR and CSIR as integral to strengthening India’s innovation ecosystem. He noted that the initiative aligns with India’s aspirations of moving beyond self-reliance (Atmanirbhar Bharat) to enabling international credibility, wherein other nations increasingly depend on India’s technological capabilities.

One particularly notable aspect of the DSIR’s initiatives is its emphasis on gender inclusivity. Over 10,000 women have benefited from DSIR schemes, including more than 55 women-led self-help groups, indicating a conscious effort to bridge gender gaps within tech entrepreneurship and innovation.

New Initiatives Launched

During the event, Minister Singh launched four key initiatives designed to further support deep-tech startups. These included revised guidelines for recognizing in-house R&D centers within startups, a new PRISM Network Platform called TOCIC Innovator Pulse, a campaign dubbed Creative India 2025 under the PRISM scheme, and a comprehensive DSIR Disaster Management Plan.

These initiatives are poised to create a more cohesive framework for startups to innovate, collaborate, and respond to challenges in technology development and application effectively.

Enhancing Collaboration Through MoUs and Agreements

As part of the ongoing efforts to bolster innovation, several Memoranda of Understanding (MoUs) and technology transfer agreements were exchanged during the event. This collaborative approach fosters an ecosystem where knowledge and technological advancements can flow more freely between entities, enhancing the overall effectiveness of India’s scientific and industrial research landscape.

This strategic relaxation of regulations and the introduction of comprehensive support frameworks signify that the government is keenly aware of the challenges faced by deep-tech startups. By facilitating easier access to resources and refining operational requirements, India is paving the way for a new wave of innovation that promises to not only enrich the domestic landscape but also position the country as a formidable player on the global tech stage.