New Delhi, Feb 5 (IANS) The government has expanded the definition of startups to include deep technology firms as a separate sub-category as part of its revised guidelines to strengthen the Startup India programme for developing the country as a global innovation powerhouse, according to a Ministry of Commerce and Industry statement on Thursday.
The new sub-category of “Deep Tech Startup” has been introduced for entities working on cutting-edge and breakthrough technologies. In recognition of the long gestation periods, high research and development intensity, and capital-intensive nature of deep technology enterprises, 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 Rs 300 crore, the statement said.
The revised criteria also include an increase in the turnover limit for recognition of a startup from the existing level of Rs 100 crore to Rs 200 crore, keeping in view the evolving startup ecosystem and the need to support enterprises at different stages of their business lifecycle, the statement said.
Besides, the startup recognition eligibility has been extended to cooperative entities to promote innovation-driven growth at the grassroots level in agriculture, allied sectors, rural industries and community-based enterprises. 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 startup recognition, subject to the fulfilment of other applicable criteria, the statement said.
The notification for rolling out the new criteria takes effect immediately and supersedes the startup definition issued in February 2019.
For the first time, the government has clearly defined what constitutes a deep tech startup. According to the notification, such entities must be developing solutions based on new scientific or engineering knowledge, demonstrate a high proportion of expenditure on research and development, and own or be in the process of creating significant novel intellectual property with plans for commercialisation.
The government has expanded the startup recognition framework to further strengthen the Startup India Action Plan and advance the Prime Minister’s vision of positioning India as a global innovation powerhouse, a manufacturing-led economy, the statement added.
As Startup 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, the statement said.
The revised framework follows extensive consultations with stakeholders across the startup ecosystem, as well as with various Ministries and Departments. The updated criteria are expected to expand access to startup 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 statement added.
–IANS
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