Government revises Startup recognition criteria; Turnover limit raised to Rs 200 crore
NEWDELHI: The Government of India has notified revised recognition criteria for startups, marking a significant shift in the eligibility framework to support the evolving Innovation landscape. According to the Department for Promotion of Industry and Internal Trade (DPIIT), the turnover limit for an entity to be recognised as a startup has heen increased from Rs 100 crore to Rs 200 crore. This adjustment aims to support enterprises at various stages of their business lifecycle as the Startup India initiative completes a decade in 2026.
“Keeping in view the evolving startup ecosystem and the need to support startups with targeted benefits at various stages of their business lifecycle, the turnover limit for recognition as a startup has been increased from Rs 100 crore to Rs 200 crore,” DPIITsaid in a statement. The new framework introduces a specific sub category for “Deep Tech Startups,” targeting entities engaged in breakthrough technologies. For these ventures, the government has expanded the age limit from 10 years to 20 years from the date of incorporation. Additionally, the turnover limit for deep tech entities has been set at Rs 300 crore. The government noted that this step addresses ” the unique requirements of deep tech entities operating in areas with long gestation periods, high R&D intensity, and capital- intensive development cycles.” In a move to foster grassroots innovation, the eligibility for startup project, and what contingency measures were being prepared to ensure India’s continued participation. The Minister noted that on September 16, 2025, the US Department of State announced the withdrawal of sanctions waivers granted in 2018 under the Tran Freedom and Counter-Proliferation Act of 2012, which had supported the reconstruction and economic development of Afghanistan.
The withdrawal was to take effect from Sept ember 29, 2025. However, following discussions with the US, the waiver was conditionally extended until April 26, 2026. He added that the Government of India is actively engaging with all relevant stakeholders to address the evolving situation and safeguard its interests in the Chabahar Port project.