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On 5 February 2026, the Department for Promotion of Industry and Internal Trade announced a major revision in India’s startup policy that expands the definition of a Startup and introduces a dedicated category for Deep Tech Startups. This move reflects a clear shift in India’s innovation strategy — from short-cycle digital startups to science-intensive, long-gestation technology ventures.
As per the revised notification, the scale of a recognised Startup has been significantly expanded. Earlier, a Startup would lose its recognition once its turnover crossed ₹100 crores in any financial year. Now, this threshold has been increased to ₹200 crores. This is a major and practical reform for growing businesses.
Under this new policy, a Startup must be incorporated or registered in India as a private limited company, a registered partnership firm, a limited liability partnership, a Multi State Cooperative Society registered with the Central Registrar, or a Cooperative Society under any State or Union Territory Cooperative Societies Act. It must be within ten years from the date of incorporation and its turnover must not exceed ₹200 crore in any financial year since inception. The entity must also be working towards innovation, development or improvement of products, processes or services, or operate a scalable business model with high potential for employment generation or wealth creation. Entities formed by splitting up or reconstructing an existing business are not eligible, and recognition will cease once the entity completes ten years or crosses the ₹200 crore turnover limit.
The increase from ₹100 crore to ₹200 crore is particularly important because it gives startups more room to grow without prematurely losing their recognised status. Many businesses scale rapidly once they find product market fit. Under the earlier limit, companies that were just entering a strong growth phase often lost Startup recognition at a critical stage. By doubling the turnover ceiling, the Government has acknowledged that modern startups scale faster and require policy support even at higher revenue levels. This move strengthens investor confidence, improves long term planning and ensures that high growth enterprises can continue to avail Startup benefits during their expansion phase.
What truly distinguishes this notification is the formal recognition of the Deep Tech Startup category. This is not merely an extension of limits but a policy acknowledgment that certain ventures operate in an entirely different innovation cycle compared to conventional startups.
Deep tech businesses are typically built around breakthrough scientific discoveries, complex engineering solutions, or advanced technological research. Unlike platform based or service driven startups that can scale relatively quickly, deep tech ventures often require years of experimentation, testing, regulatory approvals, infrastructure development and continuous research before achieving commercial success. Recognising these realities, the DPIIT has extended the eligibility period for such startups from ten years to twenty years from the date of incorporation. Additionally, the turnover threshold has been increased to ₹300 crore in any financial year, offering a more realistic growth runway.
Such startups are commonly found in sectors like biotechnology, space technology, semiconductor design, clean energy, advanced materials, robotics, quantum computing and defence innovation. Their journey to market is slower but their long term impact on national competitiveness, strategic independence and high value employment generation is far greater.
By carving out a separate category with extended timelines and higher turnover limits, the Government has aligned policy support with the real lifecycle of research driven enterprises. This move signals a clear shift towards promoting foundational innovation rather than short term scalability alone. It provides deep tech founders with stability, encourages patient capital investment and strengthens India’s ambition to become a global leader in advanced technologies.
The timing of this policy update is significant. India’s Startup India initiative has completed a decade, with over two lakh recognised startups and more than 21 lakh jobs supported across sectors, a milestone highlighted by Shri Piyush Goyal, Union Minister of Commerce, earlier this year. Union Minister’s comments and public addresses in recent months have underscored the nation’s transition from an emphasis on consumer-facing digital ventures to a broader innovation agenda that prioritises high-tech, deep research and global competitiveness.
In several forums last year, the Union Minister emphasized that India’s startup ecosystem must evolve beyond convenience-oriented services to focus more on sectors such as artificial intelligence, robotics, semiconductors, machine learning and advanced manufacturing. His remarks, particularly at large entrepreneurship events like Startup Mahakumbh 2025 and the TiEcon Delhi-NCR conference, sparked wide attention and debate within the founder community. While some perceived his language as stark, his aim was to challenge entrepreneurs to dream bigger, think globally and pursue differentiated technology innovation that can position India at the forefront of future industry trends.
From a broader perspective, this redefinition represents an evolution in India’s innovation narrative. It signals the country’s intent to foster an ecosystem where startups are not merely engines of quick scale-ups or gig economy solutions but foundations of future industrial and scientific leadership. With supportive policy frameworks and active encouragement from the Ministry of Commerce and Industry, India is now better positioned to nurture deep scientific talent, attract global investments and create a diversified pipeline of high-impact technological ventures.
In practical terms, entrepreneurs and founders looking to benefit from this new regime should revisit eligibility criteria, assess whether their ventures qualify as Deep Tech Startups and engage with DPIIT’s guidance as policy implementation evolves. This change not only stabilises the startup recognition landscape but also reaffirms India’s commitment to building a resilient, globally competitive and innovation-led economy.