The development confirms CNBC-TV18’s newsbreak of January 28, 2026, when the government’s plan to overhaul the startup recognition framework was first reported.
Key changes to startup recognition norms
- Higher turnover threshold for startups
To reflect the evolving maturity of India’s startup ecosystem and enable targeted support across different growth stages, the turnover limit for recognition as a startup has been raised from ₹100 crore to ₹200 crore.
- New ‘Deep Tech Startup’ category
A new recognition sub-category of “Deep Tech Startup” has been introduced for entities working on cutting-edge and breakthrough technologies. The definition and core attributes were finalised through consultations with line ministries, departments and ecosystem stakeholders to ensure clarity and objective identification.
Eligibility norms for deep-tech startups have been significantly expanded to account for long gestation periods and capital-intensive development cycles:
- Age limit extended from 10 years to 20 years from incorporation or registration
- Turnover limit enhanced to ₹300 crore
Cooperatives brought under startup eligibility
To support innovation-driven growth at the grassroots level, cooperative societies have been included under eligible legal entities for startup recognition. These include:
- Multi-State Cooperative Societies registered under the Multi-State Cooperative Societies Act, 2002
- Cooperative Societies registered under State and Union Territory Cooperative Acts
Why the changes matter
In a government release, officials noted that over the past decade, India’s startup ecosystem has shifted towards longer innovation cycles, higher capital intensity and delayed commercialisation, particularly in deep technology, manufacturing and R&D-led sectors. Many innovation-driven enterprises were outgrowing existing age or turnover limits while still in critical development or validation stages, leading to premature loss of recognition and policy support.
The updated framework aims to widen 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 and rural sectors, and strengthen India’s position as a global hub for high-technology and knowledge-intensive entrepreneurship.
Also Read: Inside the Leap to Unicorn Top 100: The startups shaping India’s next decade
As Startup India enters its second decade, the reforms are intended to create a more predictable, inclusive and future-ready policy environment for founders, while attracting long-term patient capital into high-technology and R&D-intensive sectors.
Launched on January 16, 2016, the Startup India initiative is administered by the Department for Promotion of Industry and Internal Trade (DPIIT). Recognised startups are eligible for government funding schemes, regulated funding avenues, tax exemptions and compliance-related relief. Since its launch, over two lakh entities have been recognised as startups.
