News: India has notified a revised recognition framework and eligibility criteria for recognising entities as startups.
About Revised Startup Recognition Framework
- The Revised Startup Recognition Framework aimed at strengthening the country’s innovation ecosystem and expanding support for emerging deep-technology ventures, long-term R&D-driven enterprises, and innovation-led cooperative institutions.
- Key revisions to the startup recognition criteria include:
- Increased Turnover Threshold: The maximum annual turnover limit for startup recognition has been raised from ₹100 crore to ₹200 crore.
- Expanded Eligible Legal Entities: Newly eligible entities include Multi-State Cooperative Societies (under the 2002 Act) and State and UT-registered Cooperative Societies. This move is expected to strengthen innovation in agriculture and allied sectors, rural industries, community enterprises and sustainable development models.
About Deep Tech Startup Category
- The government has introduced a separate “Deep Tech Startup” category to recognize startups engaged in developing cutting-edge and breakthrough technologies.
- This aims to support innovation-driven enterprises that rely heavily on advanced scientific research and technological development.
- Key Features of the Category:
- Extended Age Limit: The maximum age limit for startup recognition has been increased from 10 years to 20 years, allowing more mature deep tech companies to qualify.
- Higher Turnover Ceiling: The turnover limit has been raised to ₹300 crore, enabling larger and more established deep tech startups to benefit from government support.
- Recognition of Unique Challenges: Deep tech startups typically involve long development cycles and intensive research and development (R&D). The new category acknowledges these distinctive challenges.
- Expanded Eligibility Criteria: To accommodate the specific needs of deep tech ventures, the government has broadened the eligibility requirements.
