Govt revises Startup India framework, raises turnover threshold

The Government of India on 5th February revised the startup recognition framework under the Startup India Action Plan, aiming to strengthen the country’s innovation ecosystem and support the next phase of startup-led growth.

The updated framework seeks to provide a more predictable, inclusive and future-ready policy environment for founders, while encouraging the flow of long-term capital into high-technology and research-driven sectors. As Startup India enters its second decade, the revised criteria are designed to support enterprises across different stages of their business lifecycle and reflect the evolving nature of India’s startup ecosystem.

Key Changes in the Revised Framework

• Higher turnover threshold: The turnover ceiling for startup recognition has been enhanced from ₹100 crore to ₹200 crore.
• Dedicated Deep Tech category: A new sub-category for Deep Tech Startups has been introduced, covering enterprises working on advanced and breakthrough technologies.
  • Recognising the long gestation periods, high R&D intensity and capital requirements of deep technology ventures:
    • The age limit for recognition has been extended from 10 years to 20 years.
    • The turnover ceiling for this category has been raised to ₹300 crore.
• Inclusion of cooperative societies: Startup recognition eligibility has been expanded to include cooperative societies.
  • Multi-State Cooperative Societies registered under the Multi-State Cooperative Societies Act, 2002, as well as cooperative societies registered under State and Union Territory laws, will now be eligible, subject to fulfilment of other applicable conditions.

The inclusion of cooperatives is aimed at promoting innovation-led growth in agriculture, allied sectors, rural industries and community-based enterprises, broadening the reach of the startup ecosystem beyond urban and technology hubs.