Drafting the National Deep Tech Startup Policy: GoI invites public comments until Sept. 15

Click here to review the government’s draft of the National Deep Tech Startup Policy (NDTSP) and give your reviews and suggestions. To learn more about it and what it means for India, read further.

The dreaded week of mid-semester exams is upon us, and we sincerely hope that after multiple rounds of procrastination and delays, you’ve finally started studying and, of course, with a little help from your AI buddy Chat-GPT, you’ll prepare for the exams, all while praying that your crypto investments (if you ever invested because your blockchain-enthusiast wingie urged you to do so) don’t hit absolute rock bottom!

But why are we talking about all of these? Well, it turns out that our favourite Chat-GPT and Blockchain do have something in common. They belong to different domains within the vast landscape of deep tech, where groundbreaking innovations are born. Deep tech comprises startups driven by advanced scientific and engineering innovations, while “shallow tech” involves simpler digital transitions, and as is true in general, it is also quite obvious that the startup ecosystem is fuelling innovation in these domains. These startups stand out due to their ownership of intellectual property, significant technical uncertainty, extended development timelines, and substantial capital needs. These factors underscore their essential requirement for assistance in navigating their unique challenges.

Recognising this need, the government of India took a significant step on 31st July by releasing the National Deep Tech Startup Policy (NDTSP) draft. This move comes as deep tech ecosystems worldwide experience remarkable growth, with initiatives like the UK’s Catapult, Belgium’s WSL (Wallonia Brussels Startup Launchpad) and more¹. Drawing inspiration from these successful strategies, India is now dedicated to nurturing its own thriving deep tech ecosystem through the new policy.

This policy outlines a comprehensive nine-point program to foster the deep tech startup sector, bridging the gap between startups and government initiatives. A few key policy objectives² are as follows:

• Increasing the Gross Expenditure on R&D (GERD), with appropriate public and private investment share.
• Implement a Single Point of Contact (SPOC) model for Technology Transfer Offices in universities for better coordination and transfer of IPs
• Set up an Open Science and Data Sharing Platform to encourage collaboration and knowledge sharing within the deep tech community
• Establishment of a Unified IP Framework customised to deep tech startups.
• Creating a mechanism to amend the National IPR Policy to include patent eligibility of digital frontier technologies (e.g. Algorithm patenting)
• Creating a centralised platform for government grant payments to deep tech startups to streamline financing and improve transparency.
• Creating fiscal incentives like tax rebates for general partners, limited partners or investors.
• Having a Technology Impact Bond Model, where investors receive a financial return if a solution is created by deep tech startups.
• Creating regulatory sandboxes for testing functionality and risks of the creation of these startups in a controlled environment.
• Routing CSR funding into long-term grants for science-based research institutions.

The draft also emphasises financial support, proposing a minimum grant of INR 2 crore at the proof-of-concept stage and INR 3 crore at the prototype stage. This strategic funding approach aims to facilitate innovation and reduce the risk associated with deep tech startups.

However, creating a conducive ecosystem for deep tech startups is not one-dimensional; it involves multiple stakeholders. To ensure that this policy truly serves its purpose, the government has invited public comments until September 15. This inclusive approach allows stakeholders from all corners of the deep tech startup ecosystem to contribute their recommendations and suggestions, emphasising collaboration between the government and the industry, a crucial element for success.

In conclusion, the draft National Deep Tech Startup Policy signifies a substantial step towards nurturing India’s deep tech ecosystem. Industry stakeholders anticipate more changes as the policy awaits further refinement and implementation. The objective remains clear: To strengthen India’s global leadership in deep tech, driving economic growth and technological progress at home.

We urge all students, research scholars and academicians to review the policy draft and give their comments and suggestions, if any, over here:Link

Here are a few links to read a summarised version of the policy:

• Deep Dive into the National Deep Tech Startup Policy
• India’s draft deep tech startup policy a big step in the right direction

References:

National Deep Tech Startup Policy (NDTSP) – Principal Scientific Advisor, Draft National Deep Tech Startup Policy published by Principal Scientific Adviser – The Hindu, Centre releases draft National Deep Tech Startup Policy

¹ Germany’s EXIST Program & Canada’s Innovation Superclusters Initiative

² Refer to Civis for more on the policy objectives.