Government Expands Startup Definition to Fuel Innovation Surge

The government plans to broaden the definition of startups, including deep-tech and cooperatives, to enhance the startup ecosystem. This move aims to support innovation and commercial product development, with over 2 lakh entities already registered. Startups receive various incentives, including tax benefits, to foster growth.

In a bid to bolster the country's burgeoning startup ecosystem, the government is poised to widen the definition of startups. This expanded classification will encompass deep-tech firms and cooperatives, providing them an avenue to pivot towards breakthrough technological innovations.

An official announced Wednesday that the government has implemented various measures to incentivize startup growth, including recognizing over 2 lakh entities under the Commerce and Industry Ministry's startup category.

Eligibility for recognition requires an entity to exist for no more than a decade and have an annual turnover not exceeding Rs 100 crore. Qualified startups benefit from incentives like income tax relief under the Startup India initiative, thereby accelerating their development.

(With inputs from agencies.)