The Union government has once again stressed its commitment to promoting startups in India. The Centre has further broadened the definition for startups and raised the annual turnover threshold to ₹200 crore.
This strategy also extends the eligibility window to 20 years for selected innovation-driven firms, including deep-tech firms. The move is intended to give the fast-scaling ventures more time and financial headroom to access policy benefits as they mature.
The revised framework updates long-standing criteria that many founders said no longer reflected the pace and capital needs of India’s startup ecosystem. The changes are designed to support better innovation, research-led businesses and companies building in capital-intensive technology sectors.
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Higher Turnover Limit Brings Relief for Scaling Startups
Under the updated norms, startups can now report annual turnover of up to ₹200 crore, double the earlier cap of ₹100 crore and still retain official recognition. The change applies retrospectively to eligible firms and is expected to benefit a broad range of growth-stage startups that were previously at risk of prematurely ageing out of the policy framework.
Industry executives said the higher threshold reflects market realities, in which startups often scale revenue faster but remain dependent on external funding for expansion. Recognition as a startup enables firms to access tax benefits, regulatory exemptions, faster approvals and government-linked funding programmes.
The policy shift is also expected to reduce friction for founders preparing for late-stage funding rounds or public listings while continuing to invest in product development.
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Deep Tech Startups Get Longer Recognition Window
In a key addition, the government has extended the startup recognition period from 10 years to 20 years for deep-tech firms. These include startups working in areas such as artificial intelligence, biotechnology, semiconductors, clean energy, robotics and advanced manufacturing.
Officials acknowledged that deep-tech ventures typically require longer development cycles, higher research costs and longer paths to commercialisation. The more extended recognition period is intended to align policy support with the operational realities of such businesses.
The move is likely to improve capital access for research-intensive startups and signal stronger long-term policy backing for India’s deep-tech ecosystem.
