New Delhi, Feb 5 (NationPress) The government has broadened the definition of startups to encompass deep technology firms as a distinct sub-category, as part of its updated guidelines aimed at enhancing the Startup India initiative. This move is designed to bolster the country's status as a global hub for innovation, as stated by the Ministry of Commerce and Industry on Thursday.

The newly defined sub-category, termed "Deep Tech Startup," is for organizations engaged in pioneering and revolutionary technologies. Acknowledging the prolonged development periods, high research and development costs, and capital-intensive nature of deep tech enterprises, the eligibility criteria for this category have been modified. The age limit has been increased from 10 years to 20 years from the date of incorporation or registration, and the turnover limit has been raised to Rs 300 crore, according to the statement.

Moreover, the criteria have also been revised to elevate the turnover cap for recognizing a startup from Rs 100 crore to Rs 200 crore, reflecting the changing landscape of the startup ecosystem and the necessity to support enterprises at various developmental stages.

Additionally, the eligibility for startup recognition has been extended to cooperative organizations, fostering innovation-driven growth at the grassroots level in agriculture, allied sectors, rural industries, and community-based enterprises. As a result, Multi-State Cooperative Societies registered under the Multi-State Cooperative Societies Act, 2002, along with Cooperative Societies registered under state and Union Territory Cooperative Acts, are now qualified for startup recognition, provided they meet other relevant criteria.

This new set of rules is effective immediately and replaces the previous startup definition established in February 2019.

For the first time, the government has precisely defined what constitutes a deep tech startup. According to the notification, such organizations must be developing solutions rooted in novel scientific or engineering insights, exhibit a significant level of expenditure on research and development, and possess or be in the process of establishing substantial novel intellectual property with commercialization plans.

The government has broadened the startup recognition framework to further reinforce the Startup India Action Plan and advance the Prime Minister’s vision of establishing India as a global innovation hub and a manufacturing-led economy.

As Startup India embarks on its second decade, the updated framework aims to offer a more predictable, inclusive, and future-ready policy environment for entrepreneurs while facilitating the flow of long-term patient capital into high-tech and research-intensive sectors.

The revised framework comes after extensive consultations with stakeholders throughout the startup ecosystem and various Ministries and Departments. The updated criteria are anticipated to widen access to startup advantages for research- and innovation-driven entities, provide targeted assistance to deep tech ventures requiring longer development timelines, empower cooperatives to stimulate innovation in agriculture and rural development, and further solidify India’s position as a global center for high-tech and knowledge-intensive entrepreneurship.