Deep tech startups, VCs urge tax breaks and clearer rules in meeting with Piyush Goyal

Over 35 deep tech and semiconductor startups, along with more than 30 venture capital firms, held a roundtable with Commerce and Industry Minister Piyush Goyal on Thursday to discuss measures for strengthening India’s innovation ecosystem.

According to an official statement on Friday, the discussions focused on tax incentives, regulatory reforms, and extending Startup India benefits for DeepTech ventures.

Participants called for extending Startup India recognition beyond the current 10-year limit, improving clarity on grant accounting and Foreign Contribution Regulation Act (FCRA) norms for R&D funding, and introducing targeted tax incentives to attract private investment in innovation.

Delighted to interact with leading investors & venture capitalists of the Indian #Startup ecosystem in Bengaluru, hosted by @TVMohandasPai ji.

Engaging discussions were held on DeepTech needs, capital trends & priorities of Alternative Investment Funds.

Emphasised the need to… pic.twitter.com/ASRmMVoqvB

— Piyush Goyal (@PiyushGoyal) October 31, 2025

The group also sought more flexibility in fund regulations and reforms in Department of Scientific and Industrial Research (DSIR) registration norms to help early-stage DeepTech startups access R&D-linked benefits.

The ministry said a follow-up mechanism will be set up to review progress and compile actionable recommendations to support long-term innovation.

Goyal reiterated the government’s commitment to strengthen India’s DeepTech ecosystem, enhance ease of doing business, and promote entrepreneurship. He also emphasised the need to build domestic capital, support homegrown funds, and encourage startups to develop frontier technologies as part of Aatmanirbhar Bharat.

Startups including Agnit Semiconductors, QpiAI, Nabhdrishti Aerospace, EtherealX, Fabheads, Ethereal Machines, Dozee, Exponent Energy, SignalChip Innovations, and QNu Labs participated in the meeting.

Investors from Celesta Capital, Blume Ventures, Avaana Capital, Peak XV, Creagis, and 3one4 Capital shared their views on fostering long-term DeepTech innovation, supporting sustainable exit pathways, and encouraging co-investment opportunities.