The government has expanded the Startup India framework by increasing the turnover threshold for startup recognition and formally introducing deep-tech companies as a distinct category.
In a gazette notification issued on February 4, the Department for Promotion of Industry and Internal Trade (DPIIT) said the turnover limit for startups has been raised to Rs 200 crore from the earlier Rs 100 crore, while the age limit remains unchanged at 10 years from the date of incorporation. The notification comes into effect immediately and replaces the startup definition notified in February 2019.
A key change under the revised framework is the creation of a dedicated sub-category for deep-tech startups. These firms will now be eligible for recognition for up to 20 years, with a higher turnover ceiling of Rs 300 crore.
For the first time, the government has formally defined deep-tech startups. According to the notification, these are entities developing solutions based on new scientific or engineering knowledge, marked by a high share of research and development expenditure and the creation or ownership of significant novel intellectual property with a clear plan for commercialisation. The framework also acknowledges that such ventures typically require higher capital investment, involve longer gestation periods and carry greater technical or scientific risk.
The broader definition of a startup remains unchanged. Eligible entities must be incorporated or registered in India as a private limited company, partnership firm, limited liability partnership or cooperative society, and must focus on innovation or a scalable business model with the potential to generate employment or create wealth. Startup recognition will continue to be processed through the DPIIT portal.
Recognised startups, including deep-tech firms, will remain eligible to seek income-tax exemptions under Section 80-IAC of the Income-tax Act, subject to certification by the Inter-Ministerial Board.
