CORPORATE
Start-up framework widened to include deep-tech firms, cooperatives; revenue cap raised
- IBJ Bureau
- Feb 06, 2026
India has overhauled its start-up recognition framework, widening access to policy benefits by raising turnover thresholds. It has also extended eligibility timelines for deep-technology firms and brought cooperative societies into the ambit of the Start-Up India programme.
Under the new norms notified by the Department for Promotion of Industry and Internal Trade (DPIIT), a start-up will now be defined as an entity up to 10 years from incorporation with turnover not exceeding Rs 200 crore in any financial year. For firms recognised as deep-tech start-ups, the eligibility window has been extended to 20 years, with the turnover cap raised to Rs 300 crore.
“The objective is to enable greater support for emerging deep-tech ventures, long-term R&D-driven enterprises and empowering cooperatives to be active participants in India’s rapidly-growing entrepreneurial landscape,” Commerce and Industry Minister Piyush Goyal has said in a post on the X.
The government, however, has imposed certain restrictions to ensure that benefits of a recognised start-up flow to genuine entities. “The government of India has now notified a revised framework and eligibility criteria for recognising entities as start-ups, with the objective of strengthening the country’s innovation ecosystem,” the department has said.
Any entity formed by splitting up or reconstruction of an existing business shall not be considered as a start-up. According to the notification, a deep-tech start-up has to work on producing a solution based on new knowledge or advancement within a scientific or engineering discipline, which is yet to be developed or is in the process of being developed.
It must have a high percentage of expenditure on R&D as a percentage of revenues or funding and own or be in the process of creating a significant novel intellectual property. Further, the deep-tech start-up, during its period of recognition, will be disallowed from investing in assets or activities other than that integral to its core business operations.
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