Recognition framework revised to strengthen Start-up India Action Plan

As Start-up India enters its second decade, the revised framework seeks to provide a more predictable, inclusive and future-ready policy environment for founders, while facilitating the flow of long-term patient capital into high-technology and research-intensive sectors, a release from the ministry said.

Key revisions are enhanced turnover threshold for start-up recognition; introduction of a dedicated category for deep tech start-ups; and inclusion of cooperative societies as eligible entities.

Keeping in view the evolving start-up ecosystem and the need to support enterprises at different stages of their business lifecycle, the turnover limit for recognition as a start-up has been increased from ₹100 crore to ₹200 crore.

A new sub-category of ‘deep tech start-up’ has been introduced for entities working on cutting-edge and breakthrough technologies. The eligibility criteria for this category have been expanded, with the age limit extended from 10 years to 20 years from the date of incorporation or registration, and the turnover limit enhanced to ₹300 crore.

To promote innovation-driven growth at the grassroots level in agriculture, allied sectors, rural industries and community-based enterprises, start-up recognition eligibility has been extended to cooperative entities.

Accordingly, multi-state cooperative societies registered under the Multi-State Cooperative Societies Act, 2002, as well as cooperative societies registered under State and Union Territory Cooperative Acts, are now eligible for start-up recognition, subject to fulfilment of other applicable criteria.

The updated criteria are expected to expand access to start-up benefits for research- and innovation-driven enterprises, provide targeted support to deep tech ventures requiring extended development timelines, enable cooperatives to drive innovation in agriculture and rural development, and further strengthen India’s position as a global hub for high-technology and knowledge-intensive entrepreneurship, the release added.

Fibre2Fashion (DS)