Government revises startup recognition rules: turnover cap doubled to ₹200 crore, new Deep Tech category
The Commerce and Industry Ministry announced on 5 February 2026 a revised startup recognition framework that raises the turnover limit from ₹100 crore to ₹200 crore, creates a Deep Tech Startup category and makes cooperative societies eligible.
Summary
The Ministry of Commerce and Industry announced on 5 February 2026 that the startup recognition framework under the Startup India Action Plan has been revised. The turnover limit for recognition rises from ₹100 crore to ₹200 crore. A new sub-category, 'Deep Tech Startup', gets an age limit of 20 years from incorporation (against 10 years for other startups) and a turnover limit of ₹300 crore. Multi-State Cooperative Societies registered under the Multi-State Cooperative Societies Act, 2002, and cooperative societies registered under State and UT Acts are now eligible for recognition, subject to other criteria.
Key facts
- Announced
- 5 February 2026
- Turnover limit
- ₹100 crore → ₹200 crore
- Deep Tech Startup
- Age limit 10 → 20 years; turnover limit ₹300 crore
- Newly eligible
- Multi-State Cooperative Societies (MSCS Act, 2002) and State/UT cooperative societies
Practice MCQs 3 questions
Under the revised startup recognition framework announced on 5 February 2026, what is the new turnover limit for a startup?
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Correct answer: D — ₹200 crore
The turnover limit for startup recognition was raised from ₹100 crore to ₹200 crore.
What age limit from incorporation applies to the new 'Deep Tech Startup' category?
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Correct answer: C — 20 years
For Deep Tech Startups the age limit was extended from 10 to 20 years, with a turnover limit of ₹300 crore.
Consider the following about the revised startup recognition framework (February 2026): 1. Multi-State Cooperative Societies registered under the Multi-State Cooperative Societies Act, 2002 are now eligible for startup recognition. 2. The turnover limit for a Deep Tech Startup is ₹200 crore, the same as for other startups. Which of the above is/are correct?
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Correct answer: A — 1 only
Only 1 is correct. Deep Tech Startups have a higher turnover limit of ₹300 crore; ₹200 crore applies to other startups.