Parliament Question: Expansion of scope for Startup recognition

GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE RAJYA SABHA UNSTARRED QUESTION NO. 3233. TO BE ANSWERED ON FRIDAY, THE 20TH MARCH, 2026. EXPANSION OF SCOPE FOR STARTUP RECOGNITION 3233. SHRI IMRAN PRATAPGARHI: Will the Minister of Commerce and Industry be pleased to state: (a) whether Government has expanded the scope and eligibility criteria for recognition of Start-ups under the Startup India initiative; (b) if so, the details thereof along with the reasons for such expansion; (c) the number of Start-ups recognised before and after the said expansion, State/UT-wise, particularly in Punjab; (d) whether any assessment has been conducted regarding the impact of the expanded recognition framework, if so, the findings thereof; and (e) the specific measures taken to ensure that Start-ups in smaller cities and non-metro regions effectively get benefit from the revised framework? ANSWER THE MINISTER OF STATE IN THE MIN ISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA) (a) & (b): The Government has expanded the scope and eligibility criteria for recognition of startups under the Startup India initiative through notification G.S.R. 108(E) dated 4th February 2026 to better reflect the evolving scale and diversity of India’s startup ecosystem. The key revisions are as follows: i. Increase in turnover ceiling: The annual turnover ceiling upto which a startup can remain recognised as a ‘startup’ has been increased from Rs. 100 crore to Rs. 200 crore, enabling scaling enterprises to continue availing benefits under the Startup India initiative. ii. Introduction of a ‘Deep Tech Startup’ category: A separate category has been introduced for startups working on advanced and emerging technologies with extended eligibility parameters: (a) Age limit: Up to 20 years from the date of incorporation orregistration. (b) Turnover ceiling: Up to Rs. 300 crore, recognising the longer gestation periods and capital intensity associated with deep technology ventures. iii. Expansion of eligible entity types: Multi-State Cooperative Societies registered under the Multi-State Cooperative Societies Act, 2002 and Cooperative Societies registered under State/UT Cooperative Societies Acts are now eligible for startup recognition, subject to fulfilment of the prescribed criteria.The gazette notification can be accessed at: https://egazette.gov.in/WriteReadData/2026/269843pdf These revisions were formulated following consultations with stakeholders across the startup ecosystem and relevant Ministries/Departments to better support innovation- driven enterprises and sectors requiring longer technology development cycles. (c) & (d): The number of entities recognised as startups under the Startup India initiative has increased from approximately 500 in 2016 to 2,12,283 as on 31st January 2026. The State/Union Territory-wise number of entities recognised as startups, including those from the State of Punjab, as on 3rd February 2026 (prior to the revised framework) and from 4th February 2026 to 28th February 2026 (after the revised framework) is placed at Annexure-I. The revised recognition framework was formulated after consultations with stakeholders across the startup ecosystem as well as with relevant Ministries and Departments. While the revised framework has been notified recently, the expansion of eligibility parameters will enable a wider set of innovation-driven enterprises, including deep technology ventures and eligible cooperative institutions, to be eligible for startup recognition and access the benefits available under the Startup India initiative. (e): Startup recognition under the Startup India initiative is processed through a digital application system available on the Startup India portal and the National Single Window System (NSWS), enabling entrepreneurs across the country, including those in smaller cities and non-metro regions, to apply online. The recognition process is based on self-certification with simplified documentation, and guidance material, such as recognition handbooks and tutorials, are available on the portal to assist applicants in navigating the process. In addition, the Government undertakes outreach, awareness and ecosystem development initiatives across States and Union Territories in collaboration with State startup nodal agencies, incubators and other ecosystem stakeholders to promote startup recognition and support innovators in emerging startup hubs. Capacity-building workshops and stakeholder consultations are organised across regions to strengthen local startup ecosystems and facilitate participation from smaller cities. Further, national initiatives such as the States’ Startup Ranking Framework, National Startup Awards, Startup Mahakumbh, ASCEND (Accelerating Startup Caliber & Entrepreneurial Drive) sensitisation workshops in the North Eastern region, and Startup India Innovation Week provide platforms for entrepreneurs from across the country to engage with investors, incubators and policymakers, thereby promoting entrepreneurship and encouraging startup participation from non-metro and emerging innovation clusters. ******ANNEXURE-I ANNEXURE REFERRED TO IN REPLY TO PARTS (c) & (d) OF THE RAJYA SABHA UNSTARRED QUESTION NO. 3233 FOR ANSWER ON 20.03.2026. The State/Union Territory (UT)-wise number of entities recognized as startups in the country is placed below: State/UT No. of entities No. of entities recognized as recognized as startups startups from 4th February as on 3rd February 2026 till 28th February 2026 2026 Andaman and Nicobar Islands 93 3 Andhra Pradesh 4015 122 Arunachal Pradesh 88 3 Assam 2070 48 Bihar 4757 153 Chandigarh 670 12 Chhattisgarh 2306 62 Dadra and Nagar Haveli and 90 1 Daman and Diu Delhi 20318 352 Goa 785 13 Gujarat 18234 459 Haryana 11033 281 Himachal Pradesh 783 18 Jammu and Kashmir 1452 35 Jharkhand 2000 59 Karnataka 21647 428 Kerala 8278 173 Ladakh 25 0 Lakshadweep 3 0 Madhya Pradesh 7090 208 Maharashtra 36861 816 Manipur 258 6 Meghalaya 92 2 Mizoram 64 1 Nagaland 116 3 Odisha 3686 75 Puducherry 226 8 Punjab 2372 50 Rajasthan 7714 192 Sikkim 18 2 Tamil Nadu 14124 293 Telangana 11780 346 Tripura 201 8 Uttar Pradesh 20782 593 Uttarakhand 1744 51 West Bengal 6965 161 Total 2,12,740 5,037 *******