Deep Tech Startups Get Recognition & Boost

New Delhi, Feb 6 (PTI) The government's move to double the turnover-threshold criteria for recognising entities as startups and include deep tech firms in the definition of startups will impart greater certainty to founders, enable sustained innovation and help attract long-term capital, India Inc, and VC firms backing deep tech startups said on Friday.

The government has expanded the criteria for recognising entities as startups by doubling the turnover threshold to Rs 200 crore, according to a notification.

A new recognition of 'Deep Tech Startup' has also been introduced for entities working on cutting-edge and breakthrough technologies, the notification of the Department for Promotion of Industry and Internal Trade (DPIIT) said.

The age limit criteria for such deep tech startups have also been significantly expanded, from 10 years to 20 years from the date of incorporation or registration, whereas the turnover limit has been enhanced to Rs 300 crore.

CII Director General Chandrajit Banerjee welcomed the government's decision to expand the definition of startups by doubling the turnover threshold to Rs 200 crore, saying the move will allow more growth-stage, innovation-driven enterprises to remain within the startup ecosystem as they scale.

"Together, these reforms will provide greater certainty to founders, enable sustained innovation, and attract patient, long-term capital. By strengthening support for deep tech today, India is building globally competitive capabilities, enhancing strategic self-reliance, and laying the foundation for long-term technology leadership aligned with the vision of Viksit Bharat," he added.

Vishesh Rajaram, Founding Partner at Speciale Invest, a venture capital firm backing visionary founders in deep tech and frontier technology, termed it a "decisive and forward-looking" move.

"By formally recognising deep tech startups and giving them a longer runway, India is aligning policy with the realities of science-led innovation. It sends a clear signal that the country is serious about building IP-driven deep-tech companies from India for the world -- and gives founders and investors the confidence to commit long-term capital to that journey, he said.


Amit Chand, Founder of BYT Capital, which also funds deep tech firms, said it is a timely step that aligns policy with the realities of frontier innovation.

"By extending startup recognition for eligible deep tech ventures to 20 years and raising the turnover threshold to Rs 300 crore, this policy doesn't just add a label, it improves time horizons, capital efficiency, and investability for deep tech in India".

Further to support innovation-driven growth at the grassroots in agriculture, allied sectors, rural industries, and community-based enterprises, the government has extended startup recognition eligibility to cooperative enterprises.

Accordingly, certain categories of cooperatives are now eligible for recognition as startups, subject to conditions.

It includes multi-state cooperative societies registered under the Multi-State Cooperative Societies Act, 2002, and cooperative societies registered under State and Union Territory Cooperative Acts.

Over the last decade, India's startup ecosystem has shifted toward longer innovation cycles, higher capital intensity, and delayed commercialisation, particularly in deep technology, manufacturing, and R&D-driven sectors.

Several innovation-led enterprises currently outgrow existing age or turnover limits while still in critical development or validation stages, resulting in premature loss of recognition and access to policy support.

So far, about two lakh entities have been recognised as startups, which are eligible for a number of incentives, such as income tax benefits under the Startup India initiative.