Government Expands Startup Recognition Framework to Boost Innovation Ecosystem
In a significant move to strengthen India's startup landscape, the government has announced a major expansion of the criteria for recognizing startups. The turnover threshold for eligibility has been doubled from Rs 100 crore to Rs 200 crore, allowing more companies to access benefits and support programs.
Broadened Eligibility and New Deep Tech Category
The revised framework, announced on Thursday, represents a comprehensive overhaul of startup recognition policies. Companies generating up to Rs 200 crore in turnover can now obtain official startup status, substantially expanding the coverage of firms eligible for government incentives and support mechanisms.
Beyond the general turnover increase, the government has introduced a specialized deep tech startup sub-category. This new classification targets entities working on cutting-edge and breakthrough technologies, with even more generous eligibility criteria. For deep tech startups, 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 raised to Rs 300 crore.
Strategic Objectives and Sectoral Inclusion
"As Startup India enters its second decade, the revised framework seeks to provide a more predictable, inclusive and future-ready policy environment for founders, while facilitating the flow of long-term patient capital into high-technology and research-intensive sectors," the government stated in its announcement.
The updated criteria includes several strategic enhancements:
- Extension of startup benefits to cooperative societies, enabling innovation in agriculture, rural industries and community-based enterprises
- Targeted support mechanisms for deep tech ventures working on advanced technologies
- Expanded access to startup benefits for research- and innovation-driven enterprises across all sectors
Impact on India's Startup Ecosystem
This policy revision is expected to significantly strengthen India's position as a global hub for high-technology and knowledge-intensive entrepreneurship. The government emphasized that these changes will "provide targeted support to deep tech ventures and enable cooperatives to drive innovation in agriculture and rural development."
India currently hosts the world's third-largest startup ecosystem, trailing only the United States and China. As of December 2025, the country boasts more than two lakh startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT). The expanded recognition criteria is projected to substantially increase this number while providing crucial support to startups at various stages of their business development cycles.
The government's announcement specifically noted that these changes aim to "ensure support for startups in different stages of their businesses," reflecting a more nuanced approach to nurturing innovation across the entire entrepreneurial lifecycle rather than focusing exclusively on early-stage ventures.
