New Delhi — If you’re sipping on overpriced cold brews in Green Park while dreaming of your AI-powered startup finally getting backing, this one’s for you. In a move that might just be the rocket fuel for Delhi’s innovation circuit, the government has decided to scrap the controversial “three-year rule” for deep-tech startup loans. Basically, you no longer need to be a three-year-old company to get serious funding. Game changer, no?
Why Your Dorm Room Startup Just Got a Real Shot
Union Minister Dr Jitendra Singh recently announced that the stringent “minimum three years of existence” requirement has now been waived for deep-tech startups applying for government-backed loans. Yes, you read that right. Startups working in cutting-edge fields like AI, quantum computing, robotics, and biotech can apply for loans right from day one. No red tape, no bureaucratic three-year waiting room.
This move is a part of a broader initiative under the National Deep Tech Startup Policy (NDTSP), designed to remove roadblocks for founders who are working out of basements in Karol Bagh or swanky offices behind Select Citywalk. Until now, early-stage deep-tech innovators had to wait three years, build up a track record, or seek shady private funding to stay afloat. Not anymore.
Loans will now be awarded on the basis of the innovation itself, not just its balance sheet. According to the revised framework, startups will be evaluated on technical merit, potential for national impact, and level of indigenous IP (intellectual property).
What This Means for Your JLN Stadium-to-Gurgaon Commute
Let’s keep it real—this isn’t just about founders in designer hoodies. This policy shakeup could actually change how many of us work. If you’re a coder pulling all-nighters in Noida Sec-62 or a biotech researcher near AIIMS, increased funding means more early-stage startups will be hiring sooner. Translation? More jobs, more freelance gigs, and yes, more Uber traffic near institutional hubs like IIT Delhi and NSIT.
And for college students who are tired of internships that just involve filling Excel sheets at Rajouri Garden firms, this could be your shot to jump on a startup rocket before it even launches. Founders will now be able to pay stipends, hire interns, and scale faster thanks to early exposure to funding.
Remember When Only Flipkart and Paytm Got the Money?
Here’s the backstory. India’s startup ecosystem traditionally revolved around e-commerce and SaaS. Deep-tech has always flown under the radar because funding deep-tech takes time, money, and risk — things VCs aren’t too fond of. The earlier rule requiring startups to be three years old came from a place of caution — a way to ensure financial viability before releasing funds with taxpayer backing.
But in a city like Delhi, where the startup ecosystem sees thousands of ideas sprouting every quarter—from drone logistics companies around Nehru Place to biotech labs near Okhla—three years was essentially a death sentence for many early innovators. The new rule acknowledges that game-changing breakthroughs can happen in months, not years. It’s a sign that the babus in North Block are finally catching up with the pace of tech evolution.
📍 Spot Check: Expect increased startup activity around Knowledge Park (Greater Noida), Hauz Khas Social (co-working mecca), IIT Delhi, and innovation hubs near Dwarka Sector 21 metro station. Keep an eye also on Bio-Incubators at AIIMS and tech accelerators at Netaji Subhash University of Technology (NSUT).
The Final Word
This is a rare “Yay” from the corridors of bureaucracy. By scrapping the three-year rule, the government is actually betting on ideas, not institutions. It may finally level the playing field between a coder in Vikaspuri and a Stanford-returnee in Gurugram. The only question now is—will the banks and the evaluators follow through with the same kind of open-mindedness?
Would you quit your job if your prototype finally got funded next month?
Have something to say? Drop a comment below!
#DelhiStartups
#DeepTechFunding
#JLNToAIIMS
#StartupPolicyIndia
#HauzKhasToUnicorns
About the Author
