Startup policy shift: Govt doubles turnover limit to Rs 200 crore; what it means for founders and deep tech ecosystem – The Times of India

The authorities has expanded the standards for recognising entities as startups by doubling the turnover threshold to Rs 200 crore, whereas additionally introducing a brand new recognition class for ‘Deep Tech Startups’, aimed toward supporting excessive-expertise and analysis-pushed enterprises.The transfer is an element of broader efforts to align policy help with the evolving nature of India’s startup ecosystem, which is more and more shifting in the direction of longer innovation cycles, larger capital depth and delayed commercialisation, particularly in deep expertise, manufacturing and R&D-led sectors.

In accordance to a notification issued by the Division for Promotion of Business and Inner Commerce (DPIIT), the turnover limit for startup recognition has been elevated from Rs 100 crore to Rs 200 crore, whereas new norms have additionally been framed for Deep Tech Startups, PTI reported.

Deep Tech Startup standards expanded

For Deep Tech Startups, the federal government has considerably expanded each age and turnover limits.Beneath the revised framework:• Age limit has been prolonged from 10 years to 20 years from the date of incorporation or registration• Turnover limit has been elevated to Rs 300 crore“This step addresses the distinctive necessities of deep tech entities working in areas with lengthy gestation intervals, excessive R&D depth, and capital-intensive growth cycles,” the DPIIT stated.

Startup recognition prolonged to cooperatives

In one other key policy change, startup recognition eligibility has now been prolonged to sure cooperative enterprises to help innovation-led progress on the grassroots stage.Eligible classes embody:• Multi-state cooperative societies registered underneath the Multi-State Cooperative Societies Act, 2002• Cooperative societies registered underneath State and Union Territory Cooperative ActsThe transfer is aimed toward encouraging innovation in agriculture, allied sectors, rural industries and neighborhood-based mostly enterprises.

Why the standards had been modified

The authorities stated the revisions replicate structural shifts in India’s startup ecosystem over the previous decade, the place a number of innovation-led enterprises outgrow current age or turnover limits regardless of nonetheless being in growth or validation levels.“Maintaining in view the evolving startup ecosystem and the necessity to help startups with focused advantages at numerous levels of their enterprise lifecycle, the turnover limit for recognition as a startup has been elevated from Rs 100 crore to Rs 200 crore,” the notification stated.The resolution follows consultations with a number of stakeholders throughout the startup ecosystem in addition to numerous ministries and departments.

Anticipated influence on the startup ecosystem

The up to date standards are anticipated to:• Broaden entry to policy advantages for analysis and innovation-pushed enterprises• Assist deep tech ventures requiring longer growth timelines• Allow cooperatives to drive innovation in agriculture and rural sectorsThe authorities stated that as Startup India enters its second decade, the reforms are aimed toward making a extra predictable, inclusive and future-prepared policy surroundings, whereas additionally serving to entice lengthy-time period affected person capital into excessive-expertise and R&D-intensive sectors.To this point, round two lakh entities have been recognised as startups. Recognised startups are eligible for a number of incentives, together with earnings tax advantages underneath the Startup India initiative.