A new recognition of ‘Deep Tech Startup‘ has also been introduced for entities working on cutting-edge and breakthrough technologies, the notification of the Department for Promotion of Industry and Internal Trade (DPIIT) said.
The age and turnover limit criteria for such Deep Tech Startups have also been significantly expanded.
According to the notification, the age limit has been extended from 10 years to 20 years from the date of incorporation or registration, and the turnover limit has been enhanced to Rs 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 DPIIT said.
Further to support innovation-driven growth at the grassroots in agriculture, allied sectors, rural industries, and community-based enterprises, the government has extended startup recognition eligibility to cooperative enterprises.
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, it 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.
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.
The decision follows extensive consultations held with various stakeholders in the startup ecosystem, as well as different ministries and departments.
The updated criteria are expected to expand access to startup benefits for research and innovation-driven enterprises; support deep tech ventures requiring extended development timelines; enable cooperatives to lead innovation in agriculture, rural development and allied sectors, it said.
It added that as Startup India enters its second decade, these reforms are intended to provide a more predictable, inclusive and future-ready policy environment for founders and to attract long-term patient capital into high-technology and R&D-intensive sectors.
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.