Centre revises startup recognition framework

• The government has revised the startup recognition framework to further strengthen the Startup India Action Plan.

• 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.

• Recognised startups are eligible for a number of incentives, such as income tax benefits under the Startup India initiative by the department.

• So far, about two lakh entities have been recognised as startups. 

Key revisions to the startup recognition criteria:

1) Enhanced turnover threshold for startup recognition: The turnover limit for recognition as a startup has been increased from Rs 100 crore to Rs 200 crore.

2) Introduction of a dedicated category for Deep Tech Startups: A new sub-category of ‘deep tech startup’ has been introduced for entities working on cutting-edge and breakthrough technologies. The eligibility criteria for this category have been expanded, with the age limit extended from 10 years to 20 years from the date of incorporation or registration, and the turnover limit enhanced to Rs 300 crore.

3) Inclusion of cooperative societies as eligible entities: Startup recognition eligibility has been extended to cooperative entities. Accordingly, Multi-State Cooperative Societies registered under the Multi-State Cooperative Societies Act, 2002, as well as Cooperative Societies registered under State and Union Territory Cooperative Acts, are now eligible for startup recognition, subject to fulfilment of other applicable criteria.

Expected outcomes of the criteria revision:

i) Expand access to startup benefits for research and innovation-driven enterprises.

ii) Provide targeted support to deep tech ventures requiring extended development timelines. 

iii) Enable cooperatives to drive innovation in agriculture and rural development.

iv) Further strengthen India’s position as a global hub for high-technology and knowledge-intensive entrepreneurship.

(The author is a trainer for Civil Services aspirants.)