Timely boost: Govt expands scope of startup recognition

MUMBAI: In a boost to the startup ecosystem, govt has widened the scope of recognition of startups, extending the benefit to companies with a turnover of Rs 200 crore from Rs 100 crore earlier. This means that startups generating a turnover of up to Rs 200 crore will now get recognised, expanding the coverage of firms. This has been done to ensure support for startups in different stages of their businesses, the govt said on Thursday.

Besides, a new sub-category of deep tech startup has been introduced covering entities working on cutting-edge and breakthrough technologies. The eligibility criteria for such startups has also been broadened with the age limit extended from 10 years to 20 years from the date of incorporation or registration, and the turnover limit increased to Rs 300 crore.

“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 govt said.

The govt has also included cooperative societies as eligible entities to enable innovation in agriculture, rural industries and community-based enterprises. The updated criteria is expected to expand access to startup benefits for research- and innovation-driven enterprises, provide targeted support to deep tech ventures and enable cooperatives to drive innovation in agriculture and rural development, strengthening India’s position as a global hub for high-technology and knowledge-intensive entrepreneurship, govt said.

India has the third-largest startup ecosystem in the world after US and China. There are more than two lakh DPIIT-recognised startups in the country as of Dec 2025.