India Notifies Revised Startup Recognition Framework with Higher Thresholds and New Deep Tech Category

India has notified a revised recognition framework and updated eligibility norms for entities seeking startup status under the national innovation ecosystem. The move aims to strengthen support for emerging deep‑technology ventures and long‑term R&D‑driven enterprises.

It also seeks to widen the scope of recognition to include innovation‑led cooperative institutions. These changes collectively reflect India’s efforts to build a more inclusive environment for high‑growth, knowledge‑oriented businesses.

Higher Turnover Threshold Under Updated Startup Criteria

The revised framework increases the turnover ceiling for recognition as a startup from ₹100 crore to ₹200 crore. The government stated that this adjustment reflects the evolving scale of Indian startups across different growth stages.

It ensures that more maturing enterprises remain eligible for targeted benefits during expansion. The higher threshold is expected to support a broader segment of innovation‑led businesses throughout their lifecycle.

Introduction Of The ‘Deep Tech Startup’ Category

A new ‘Deep Tech Startup’ category has been introduced to recognise entities engaged in cutting‑edge and breakthrough technologies. This classification was formulated through consultations with ministries, departments and ecosystem stakeholders.

The framework aims to offer clarity and objective identification of ventures with intensive technological foundations. The inclusion of this category acknowledges the strategic importance of deep‑tech innovation in India’s economic future.

Expanded Age and Turnover Limits for Deep Tech Startups

Deep‑tech startups will now be eligible for recognition for up to 20 years from the date of incorporation or registration. This extension from the earlier 10‑year limit reflects the longer development cycles typical of deep‑technology ventures.

The turnover limit for these entities has also been raised to ₹300 crore, acknowledging their high R&D intensity and capital‑heavy growth models. These revisions are designed to accommodate the gestation periods associated with advanced scientific and technological innovation.

Supporting Long‑Term R&D And Innovation‑Led Institutions

The revised framework aims to strengthen India’s broader innovation ecosystem by supporting enterprises involved in long‑term R&D. It expands recognition to innovation‑driven cooperative institutions, signalling a more inclusive approach towards technologically oriented organisations.

Policymakers have emphasised the need to align regulatory criteria with the realities of emerging sectors. These reforms are expected to facilitate sustained research, commercialisation and scaling of deep‑tech capabilities.

Read More: India’s Silver Imports Skyrocket 129% Amid Supply Shortage and Record Prices.

Conclusion

India’s updated startup recognition framework introduces wider eligibility criteria to accommodate the country’s rapidly evolving innovation landscape. Higher turnover limits and extended age eligibility for deep‑tech ventures reflect the structural needs of long‑cycle, research‑intensive enterprises.

The creation of a dedicated deep‑tech category aligns policy support with national innovation priorities. These changes collectively aim to promote long‑term technological advancement across sectors.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.