The government is aiming to provide a more predictable, inclusive and future-ready policy environment for founders, with recent revision of the startup recognition framework to further strengthen the Startup India Action Plan. One of the key revisions to the startup recognition criteria is the enhancement of turnover threshold for startup recognition. The turnover limit for recognition as a startup has been increased from Rs 100 crore to Rs 200 crore.

Besides, a new sub-category of ‘Deep Tech Startup’ has been introduced for entities working on cutting-edge and breakthrough technologies. In recognition of the long gestation periods, high research and development intensity, and capital-intensive nature of deep technology enterprises, the eligibility criteria for this category have been expanded, with the age limit extended from 10 years to 20 years from the date of incorporation or registration, and the turnover limit enhanced to Rs 300 crore.

To promote innovation-driven growth at the grassroots level in agriculture, allied sectors, rural industries and community-based enterprises, startup recognition eligibility has been extended to cooperative entities. Accordingly, Multi-State Cooperative Societies registered under the Multi-State Cooperative Societies Act, 2002, as well as Cooperative Societies registered under State and Union Territory Cooperative Acts, are now eligible for startup recognition, subject to fulfilment of other applicable criteria.

The updated criteria are expected to expand access to startup benefits for research- and innovation-driven enterprises, provide targeted support to deep tech ventures requiring extended development timelines, enable cooperatives to drive innovation in agriculture and rural development, and further strengthen India’s position as a global hub for high-technology and knowledge-intensive entrepreneurship.