Expanding Horizons: New Age and Financial Thresholds for Startups Unveiled

The Indian government has broadened the scope for startup recognition, revising crucial criteria that offer a supportive ecosystem for emerging businesses. According to the Department for Promotion of Industry and Internal Trade (DPIIT), the threshold for turnover has been doubled from Rs 100 crore to Rs 200 crore, significantly broadening eligibility.

In an effort to further nurture the innovation landscape, a new 'Deep Tech Startup' category has been launched. These startups, focusing on breakthrough technologies, now benefit from an extended age limit of 20 years and a turnover cap of Rs 300 crore. These revisions are tailored to accommodate the extended gestation periods typical of deep tech sector enterprises.

Addressing a diverse ecosystem, the government has also extended startup recognition to cooperative enterprises, thus empowering grassroots innovation in agriculture, rural industries, and community-based enterprises. These changes are part of a strategy to create a more inclusive and long-term supportive environment for India's burgeoning startup ecosystem.