India Doubles Startup Turnover Limit to ₹200 Crore, Launches Deep Tech Category

India has significantly overhauled its startup recognition framework, doubling the turnover threshold from ₹100 crore to ₹200 crore and introducing a dedicated category for deep technology ventures. The revised criteria, notified by the Department for Promotion of Industry and Internal Trade (DPIIT), marks a major policy shift aimed at supporting innovation-driven enterprises across different growth stages and positioning India as a global hub for high-technology entrepreneurship.

The government's expanded framework introduces three major modifications to how startups are recognized and supported:

• Enhanced Turnover Threshold: The general startup recognition limit has been raised from ₹100 crore to ₹200 crore, reflecting the evolving maturity of India's startup ecosystem and enabling support for enterprises at different business lifecycle stages.
• Deep Tech Startup Category: A new sub-category has been created specifically for entities working on cutting-edge and breakthrough technologies. These startups can now operate for up to 20 years from incorporation or registrationextended from the previous 10-year limitand are eligible for recognition with a turnover limit of ₹300 crore.
• Cooperative Enterprise Eligibility: Cooperative societies, including multi-state cooperative societies and state-registered cooperatives, are now eligible for startup status to drive innovation in agriculture, rural industries, and community-based enterprises.

The introduction of the deep tech startup category addresses a critical gap in India's innovation ecosystem. Deep technology venturesthose developing artificial intelligence, advanced materials, biotechnology, quantum computing, and similar breakthrough innovationstypically require longer development cycles, substantial research and development investment, and patient capital. By extending the recognition period to 20 years and raising the turnover limit to ₹300 crore, the government acknowledges these unique requirements and provides a more realistic timeline for commercialization and profitability.

This move is particularly significant as India aims to compete globally in emerging technology sectors. The extended recognition period allows deep tech founders to focus on innovation without the pressure of premature profitability, while the higher turnover limit accommodates the capital-intensive nature of these ventures.

India currently hosts the world's third-largest startup ecosystem, with over 200,000 DPIIT-recognized startups as of December 2025. The revised framework is expected to expand access to government benefits for research and innovation-driven enterprises, including tax exemptions, compliance relief, and access to regulated funding avenues.

The inclusion of cooperative enterprises is particularly noteworthy for rural innovation. By enabling agricultural cooperatives and community-based organizations to access startup benefits, the government aims to democratize innovation beyond urban tech hubs and support grassroots entrepreneurship in allied sectors and rural industries.

As the Startup India initiative enters its second decadelaunched in January 2016these reforms are designed to create a more predictable and inclusive policy environment for founders. The government explicitly aims to attract long-term patient capital into high-technology and R&D-intensive sectors, a critical requirement for deep tech ventures that may take years to generate returns.

The revised framework reflects a strategic shift toward supporting technology-intensive entrepreneurship over quick-exit business models. By providing extended recognition periods and higher turnover thresholds, India is signaling its commitment to building a sustainable innovation ecosystem capable of competing with global technology powerhouses.

For deep tech entrepreneurs, the new criteria provide breathing room to develop and scale breakthrough technologies without the pressure of immediate profitability. Founders working on AI, quantum computing, advanced manufacturing, or biotechnology can now operate under startup status for up to two decades, accessing tax benefits and compliance relief throughout their development journey.

For traditional startups, the doubled turnover limit means more mature companies can retain startup status and continue accessing government incentives, supporting their transition from early-stage to growth-stage operations. This creates a more seamless support continuum for Indian entrepreneurs across different business models and sectors.