India Revamps Startup Recognition to Boost Innovation Landscape

The Government of India has announced a significant update to the startup recognition criteria, aimed at enhancing the nation's innovation ecosystem. The Department for Promotion of Industry and Internal Trade (DPIIT) has increased the turnover threshold for a startup from Rs 100 crore to Rs 200 crore, an adjustment designed to bolster enterprises across different stages of their growth as the Startup India initiative anticipates its decade milestone in 2026.

A notable addition to the framework is the introduction of a 'Deep Tech Startups' category. This segment, focusing on entities engaged in pioneering technologies, benefits from an age limit extension from 10 to 20 years post-incorporation. Moreover, these deep tech startups now have a turnover cap of Rs 300 crore, a measure intended to cater to their unique operational needs, which often involve long gestation periods, intensive R&D, and hefty capital requirements.

Further expanding the scope of recognition, eligibility criteria now encompass cooperative societies, including Multi-State Cooperative Societies and those registered under various state and union territory cooperative laws. This expansion aims to ignite innovation-driven advancement in agriculture, allied sectors, and rural enterprises. DPIIT explains that the revised criteria, built upon extensive stakeholder consultations, address the evolving requirements of the startup ecosystem, paving the way for consistent policy support and promoting sustainable, innovation-led growth across the nation.