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Ministry of Commerce & Industry | Department for Promotion of Industry and Internal Trade (DPIIT)
The Government of India has updated its startup eligibility criteria to support a more inclusive and technologically advanced entrepreneurial ecosystem. These revisions aim to facilitate the flow of long-term patient capital into research-intensive sectors as Startup India enters its second decade. The new framework significantly expands the definition of a startup, allowing larger and more mature entities to continue accessing government benefits.
Key Structural Revisions and Inclusivity Measures The updated criteria focus on scale, high-technology depth, and grassroots participation:
Enhanced Turnover Threshold: The annual turnover limit for startup recognition has been doubled from ₹100 crore to ₹200 crore.
Dedicated Deep Tech Category: A new sub-category for “Deep Tech Startups” has been introduced for those working on breakthrough technologies. These entities now benefit from an extended age limit of 20 years (up from 10) and an enhanced turnover limit of ₹300 crore.
Cooperative Society Eligibility: To drive innovation in agriculture and rural industries, Multi-State Cooperative Societies and State-registered cooperative societies are now eligible for startup recognition.
Strategic Intent: These changes are designed to accommodate the long gestation periods and high capital intensity inherent in deep-technology ventures.
What is a “Deep Tech Startup” in the context of the revised Indian framework? A Deep Tech Startup is a newly created sub-category for entities developing cutting-edge, breakthrough technologies that require significant research and development and have long gestation periods before reaching commercial viability. Unlike traditional startups, these ventures are often capital-intensive and face higher technical risks. To support their unique lifecycle, the government has extended their eligibility for startup benefits to 20 years from incorporation and raised their turnover cap to ₹300 crore, ensuring they can access institutional support throughout their extended R&D phase.
Policy Relevance
The framework revision signals a transition toward high-value, research-driven entrepreneurship and rural economic diversification. By increasing the turnover and age limits, the government is ensuring that successful startups are not prematurely “graduated” out of support systems before they achieve global scale.
Strategic Impact:
Scaling Strategic Technologies: The focus on Deep Tech ensures that India can build indigenous capabilities in critical areas like AI, robotics, and biotechnology, reducing reliance on imported intellectual property.
Democratising Innovation: Including Cooperative Societies provides a formal pathway for grassroots innovators in the dairy, textile, and farming sectors to access the Startup India Seed Fund and tax incentives.
Attracting Patient Capital: A more “future-ready” and predictable policy environment, particularly for 20-year deep tech ventures, is expected to attract long-term investments from global pension and sovereign wealth funds.
Manufacturing-Led Growth: Raising the turnover limit to ₹200 crore accommodates the higher revenue profiles of hardware and manufacturing startups compared to software-only ventures.
Relevant Question for Policy Stakeholders: How can DPIIT collaborate with state governments to create ‘Cooperative Innovation Hubs’ that specifically train rural cooperative members to meet the revised technical criteria for startup recognition?
Follow the full news here: Revised Startup Recognition Framework | PIB