• Source:JND
Add as a preferred

The government has expanded the criteria for recognition as a startup firm, doubling the turnover limit to Rs 200 crore.

According to a notification from the Department for Promotion of Industry and Internal Trade (DPIIT), a new category called 'Deep Tech Startup' has been introduced for companies working on cutting-edge and innovative technologies.

To qualify under the Deep Tech Startup category, the age limit for the firm has been increased from 10 years to 20 years from the date of incorporation or registration, while the turnover limit has been raised to 300 crore.

To date, approximately two lakh units have been recognised as startups. Recognised startups receive various incentives under the 'Startup India' initiative, including income tax exemptions.

ALSO READ: Delhi Biker Dies After Falling Into Pit, 3 Engineers Suspended; Father Holds Authorities Responsible | What We Know So Far

Why Did DPIIT Take This Step?

DPIIT stated that this move was made considering the specific needs of the Deep Tech sector, which involves:

  • Longer gestation periods in their operational fields.
  • A requirement for higher investment in Research and Development (R and D).
  • Extended timelines for commercialisation.

The notification highlights that this adjustment addresses the requirements of Deep Tech units operating in sectors characterised by long maturity periods, high volumes of R&D, and capital-intensive growth cycles.

ALSO READ: Did You Know? Why Writing Name In Red Ink Is Considered A Death Wish In South Korea

Inclusion Of Cooperative Societies

To foster innovation in agriculture and allied sectors, rural industries and community-based enterprises, the government has also brought cooperative societies under the ambit of startup recognition.

Under this, multi-state cooperative societies registered under the Multi-State Cooperative Societies Act, 2002 and certain cooperative societies registered under the cooperative acts of States and Union Territories, will now be eligible for recognition as startups.


Also In News