In a significant policy update, the Indian government has revised its startup recognition framework to widen access to benefits under the Startup India programme, with a sharp focus on deep-technology ventures and cooperative societies.
Under the new norms issued by the Department for Promotion of Industry and Internal Trade, a startup will now be defined as an entity up to 10 years from incorporation, with annual turnover capped at Rs 200 crore. For deep tech startups, the eligibility window has been extended to 20 years, and the turnover limit increased to Rs 300 crore. Cooperative societies, including multi-state and state-registered cooperatives, have also been brought within the scope of the programme.
“The objective is to enable greater support for emerging deep-tech ventures, long-term R&D-driven enterprises & empowering cooperatives to be active participants in India’s rapidly growing entrepreneurial landscape,” Commerce and Industry Minister Piyush Goyal said in a post on X. He added, “These reforms aim to take India’s startup journey into its next phase of growth & further strengthen the country’s position as a global innovation hub.”
The government said the revised framework is designed to ensure benefits reach genuine startups, while strengthening India’s innovation ecosystem. India has recognised more than 200,000 startups since the programme began in 2016, making it one of the world’s largest startup hubs. Recognised startups are eligible for incentives such as government funding access, tax exemptions, and regulatory relief.
According to the department, the changes reflect evolving realities in sectors like deep tech, manufacturing, and R&D, where innovation cycles are longer and capital needs are higher. Many such firms outgrow existing limits while still in development.
Sandeepp Jhunjhunwala, M&A tax partner at Nangia Global Advisors, said, “The inclusion of the deep startups category showcases that India is prioritising deep tech to move from a nation of technology adoption to one of technology innovation.”
The notification also introduces tighter controls. Startups are barred from speculative or non-productive investments, and any entity formed through the splitting or reconstruction of an existing business will not qualify. Deep tech startups must focus on solutions based on new scientific or engineering advances, show high R&D spending, and own or be developing significant novel intellectual property. During the recognition period, they cannot invest in activities outside their core business.
The government said these reforms followed consultations with industry and ministries, reinforcing India’s ambition to emerge as a global hub for high-technology and knowledge-driven entrepreneurship.
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