Revised Startup Recognition Framework

Deep Tech Startup Category
Definition: Develops solutions based on new scientific or engineering knowledge, with long development cycles, high capital & infrastructure needs, and significant technical uncertainty.
R&D Focus: Must spend a high percentage of revenue/funding on research & development.
IP Requirement: Must own or be creating novel intellectual property and be moving towards commercialisation.
Asset Restriction: Prohibited from investing in assets/activities not integral to the core business.
Turnover & Age Limits
General startups: Turnover cap raised to Rs 200 crore; eligibility up to 10 years from incorporation.
Deep Tech startups: Turnover cap raised to Rs 300 crore; eligibility extended to 20 years.
Cooperative Societies
Both Multi‑State Cooperative Societies (under the 2002 Act) and State cooperative societies are now eligible for recognition, targeting innovation in agriculture and rural sectors.
Safeguards to Prevent Misuse
Bar on entities engaged in speculative or non‑productive assets.
Excludes businesses formed by splitting or reconstructing existing enterprises.
Authority
DPIIT is the final certifying authority, guided by an Inter‑Ministerial Board of Certification.
RDI Fund
Rs 1 lakh crore Research and Development Innovation Fund managed by the Anusandhan National Research Foundation (ANRF), to be invested over seven years, partly through secondary fund managers to deep‑tech startups.

Startup India Initiative launched on 16 January 2016 under DPIIT (Ministry of Commerce & Industry).
By 2024, only ~10 % of DPIIT‑recognised startups were deep‑tech, prompting a policy overhaul.
The revision aligns with broader programmes such as Make in India, Digital India, and the push for emerging technology adoption.

Innovation Boost: Encourages high‑R&D, IP‑rich ventures, strengthening India's global tech standing.
Sectoral Impact: Inclusion of cooperatives aims to spur agri‑tech and rural entrepreneurship.
Capital Mobilisation: Higher turnover limits attract larger investors and enable scaling.
Policy Coherence: Links with the RDI Fund, Fund of Funds for Startups, Credit Guarantee Scheme, and other pillars of the Startup India Action Plan.

DPIIT powers under the Startup India Action Plan (2016).
Multi‑State Cooperative Societies Act, 2002 and respective State Cooperative Acts now intersect with startup recognition.
Guidelines issued by the Inter‑Ministerial Board as per Ministry of Commerce & Industry directives.

Prelims: Turnover limits, age limits, definition of Deep Tech, eligibility of cooperatives.
Mains: Analyse impact on innovation ecosystem, role of cooperatives in rural development, alignment with national technology missions.