India expands startup support rules

India has widened the rules for official startup recognition, giving deep-tech companies more time and a higher turnover ceiling to qualify. (pib.gov.in) The Department for Promotion of Industry and Internal Trade said on February 5, 2026 that the general turnover limit for recognised startups rises to ₹200 crore from ₹100 crore. For deep-tech startups, the age limit rises to 20 years from 10 years and the turnover limit to ₹300 crore. (pib.gov.in) The same policy package added cooperatives to the list of eligible entity types under Startup India. The revised framework is meant to support innovation, deep tech and cooperative-led enterprises, the government said. (pib.gov.in) In India’s system, recognition by DPIIT is the gatekeeper for benefits including tax exemptions, self-certification for some labour and environmental laws, fast-tracked intellectual-property support and easier public procurement rules. The Startup India portal says 227,082 startups are recognised today. (startupindia.gov.in, startupindia.gov.in) Deep tech usually means products built on long research cycles, costly prototypes and technical risk rather than quick software iteration. The revised recognition form asks applicants for evidence such as patent filings, pilot tests, accredited lab work, research grants or investor letters earmarking long-term research and development funding. (startupindia.gov.in) The funding side moved in parallel. On February 14, 2026, the Union Cabinet approved Startup India Fund of Funds 2.0 with a ₹10,000 crore corpus to channel capital into deep tech, tech-driven manufacturing and early-growth startups. (pib.gov.in) The new fund keeps the same basic structure as the first Fund of Funds: the government backs Securities and Exchange Board of India-registered Alternative Investment Funds, and those funds invest in startups rather than the state writing checks directly to founders. The scheme notification dated April 13, 2026 says the new fund uses a segmented approach, including a bucket for deep tech and another for small “micro VC” funds focused on early-stage companies. (startupindia.gov.in, pib.gov.in) The government is building on a large first round. DPIIT said Fund of Funds 1.0 committed its full ₹10,000 crore corpus to 145 Alternative Investment Funds, which in turn invested more than ₹25,500 crore in over 1,370 startups. (pib.gov.in) Those numbers help explain the rule change: many deep-tech companies spend years in labs, testing sites and regulatory reviews before revenue arrives. A 10-year clock and a ₹100 crore cap fit consumer internet companies better than sectors like semiconductors, robotics, space, biotech or advanced manufacturing. (pib.gov.in, startupindia.gov.in) The practical effect is that more Indian startups can stay inside the government’s support system for longer while trying to raise patient capital. That gives founders a wider window to qualify for recognition-linked benefits and to pitch funds backed by the new public money. (pib.gov.in, pib.gov.in)