The centre on Thursday revised the startup recognition framework under the Startup India Action Plan, with an aim to strengthen India’s innovation ecosystem and support the next phase of startup growth.
The revised framework seeks to provide a more predictable, inclusive and future-ready policy environment for founders, while encouraging the flow of long-term capital into high-technology and research-driven sectors.
As Startup India enters its second decade, the updated criteria are designed to support enterprises across different stages of their business lifecycle and reflect the evolving nature of India’s startup ecosystem.
Under the revised norms, the turnover threshold for startup recognition has been enhanced from Rs 100 crore to Rs 200 crore, enabling a larger number of growing enterprises to continue availing startup benefits.
The government has also introduced a dedicated sub-category for Deep Tech Startups, covering entities working on advanced and breakthrough technologies. Recognising the long gestation periods, high research and development intensity and capital requirements of deep technology ventures, the eligibility criteria for this category have been expanded. The age limit for recognition has been extended from 10 years to 20 years, while the turnover ceiling has been raised to Rs 300 crore.
In another key reform, the government has expanded startup recognition eligibility to include cooperative societies. Multi-State Cooperative Societies registered under the Multi-State Cooperative Societies Act, 2002, as well as cooperative societies registered under State and Union Territory laws, will now be eligible for startup recognition, subject to fulfilment of other applicable conditions. This measure is aimed at promoting innovation-led growth in agriculture, allied sectors, rural industries and community-based enterprises.
The revised framework follows extensive consultations with stakeholders across the startup ecosystem, including various Ministries and Departments. The government said the updated criteria are expected to expand access to startup benefits for research- and innovation-driven enterprises, provide targeted support to deep tech ventures, enable cooperatives to drive innovation at the grassroots level, and further strengthen India’s position as a global hub for high-technology and knowledge-intensive entrepreneurship.
