India has overhauled its startup recognition framework, widening access to policy benefits by raising turnover thresholds, extending eligibility timelines for deep-technology firms and bringing cooperative societies into the ambit of the Startup India programme.
Under new norms notified by the Department for Promotion of Industry and Internal Trade, a startup will now be defined as an entity up t…
“These reforms aim to take India’s startup journey into its next phase of growth & further strengthen the country’s position as a global innovation hub,” Goyal said.
The government, however, has also imposed certain restrictions to ensure benefits of a recognised startup flow to genuine entities. “The government of India has now notified a revised framework and eligibility criteria for recognisin…
India has recognised more than 200,000 startups since the programme’s launch in 2016, making it one of the world’s largest startup ecosystems. Recognised firms are eligible for benefits including access to government funding schemes, tax exemptions and regulatory relief.
The overhaul reflects a shift in India’s startup landscape toward longer innovation cycles, higher capital intensity and delaye…
While the list of non-permissible asset investments for startups remains largely unchanged, the notification introduces a new restriction covering “any asset or activity of a speculative or non-productive nature, as may be notified by the government,” Jhunjhunwala said. Despite the ecosystem crossing 200,000 DPIIT-recognised startups, only about 2% currently receive income tax exemptions under Sec…
