Govt eases startup recognition norms: Turnover limit doubled to ₹200 crore, deep tech age extended to 20 years

The government has revised the framework for recognising startups by raising the turnover eligibility limit to ₹200 crore, according to a notification.

The Ministry of Commerce and Industry said that the government has also introduced a dedicated ‘Deep Tech Startup’ category for deep tech ventures working on cutting-edge and breakthrough technologies.

The startups can now qualify for official recognition under the ‘Startup India Action Plan’ with annual turnover of up to ₹200 crore, increased from the earlier ₹100 crore threshold.

The age limit for ‘Deep Tech Startups’ has been extended from 10 years to 20 years from the date of incorporation, while the turnover ceiling has been raised to ₹300 crore.

"This step addresses the unique requirements of deep tech entities operating in areas with long gestation periods, high R&D intensity, and capital-intensive development cycles," the Department for Promotion of Industry and Internal Trade (DPIIT) said.

The startup recognition has also been extended to cooperative entities to promote innovation at the grassroots level.

Accordingly, certain categories of cooperatives are now eligible for recognition as startups, subject to conditions.

It includes multi-state cooperative societies registered under the Multi-State Cooperative Societies Act, 2002, and cooperative societies registered under State and Union Territory Cooperative Acts, the notification added.

"Keeping in view the evolving startup ecosystem and the need to support startups with targeted benefits at various stages of their business lifecycle, the turnover limit for recognition as a startup has been increased from Rs 100 crore to Rs 200 crore," it added.

The government said the changes follow extensive consultations with stakeholders across the startup ecosystem and various ministries and departments.

Over the last decade, India’s startup ecosystem has shifted toward longer innovation cycles, higher capital intensity, and delayed commercialisation, particularly in deep technology, manufacturing, and R&D-driven sectors.

Several innovation-led enterprises currently outgrow existing age or turnover limits while still in critical development or validation stages, resulting in premature loss of recognition and access to policy support.

So far, about two lakh entities have been recognised as startups.

Recognised startups are eligible for a number of incentives, such as income tax benefits under the Startup India initiative by the department.

The revised criteria for startup recognition are expected to widen access to benefits for research- and innovation-focused enterprises, provide targeted support to deep tech ventures, and enable cooperatives to participate in the startup ecosystem.