The government has broadened the startup definition to encompass deep technology firms as a distinct sub-category, aiming to bolster the Startup India initiative and position the country as a global innovation hub. A new sub-category called “Deep Tech Startup” has been introduced for entities focusing on cutting-edge technologies, with extended eligibility criteria. The age limit has been increased to 20 years from the date of incorporation, and the turnover limit raised to Rs 300 crore to accommodate the capital-intensive and research-driven nature of deep tech enterprises.
The revised criteria also entail a higher turnover limit for startup recognition, now set at Rs 200 crore, reflecting the evolving startup landscape and the necessity to support businesses at various growth stages. Additionally, cooperative entities are now eligible for startup recognition to foster innovation in agriculture, rural industries, and community-based enterprises. Multi-State Cooperative Societies and Cooperative Societies registered under state and Union Territory Acts can now seek startup recognition, subject to meeting other relevant criteria.
The updated guidelines replace the previous startup definition issued in February 2019 and are effective immediately. The government has outlined the characteristics of a deep tech startup for the first time, emphasizing the development of solutions based on new scientific or engineering knowledge, substantial investment in research and development, and the creation of significant intellectual property for commercialization. These changes aim to fortify the Startup India Action Plan and propel India towards becoming a global innovation and manufacturing powerhouse.
As Startup India embarks on its second decade, the revised framework aims to establish a more predictable and inclusive policy environment for founders, while attracting long-term capital into high-technology sectors. The consultations with stakeholders and Ministries have led to an updated framework that is expected to enhance access to startup benefits, offer targeted support to deep tech ventures, promote innovation in agriculture, and reinforce India’s status as a global center for technology-driven entrepreneurship.
