EconomicsSource: Press Information Bureau
Government Revises Startup Recognition Framework to Strengthen Startup India Action Plan
Saturday, 7 February 2026
Key Points
India has revised its startup recognition framework under the Startup India Action Plan, marking a significant policy update as the initiative enters its second decade. The revisions aim to strengthen the ecosystem for deep tech startups and promote innovation-led growth in the country.
Detailed Coverage
- Deep Tech Startup Category: Introduced with specific criteria for genuine innovation.
- Turnover Limit: Increased from ₹100 crore to ₹200 crore for startups; ₹300 crore for deep tech startups.
- Age Eligibility: Extended recognition period for deep tech startups from 10 to 20 years.
- Inclusion of Cooperatives: Multi-State and Cooperative Societies can now qualify for recognition.
- Restrictions: Stricter safeguards to prevent misuse and ensure benefits reach genuine startups.
- ANRF: Custodian of a ₹1 lakh crore RDI Fund to invest in emerging technologies.
- Startup India Initiative: Launched in 2016 to support startups from ideation to scale.
- Action Plan: Includes 19 items for creating a vibrant startup ecosystem.
- Fund of Funds: ₹10,000 crore corpus for expanding domestic risk capital.
- Credit Guarantee Scheme: Enables collateral-free lending for startups.
- Seed Fund Scheme: Provides early-stage funding for market entry and prototyping.
- Startup India Hub: Digital platform connecting startups with investors and mentors.
- States' Ranking Framework: Assesses startup policy performance across states.
- Mentorship Platforms: Programs connecting founders with mentors and investors.
- Impact: Over 2 lakh recognized startups and 120 unicorns in India.
- Inclusivity: 45% of startups have a woman director; many from Tier II and III cities.
Economics