Will India's new startup rules really help firms?

India has tweaked rules for startup recognition to better reflect the realities of long-gestation and scaling businesses. Eligibility timelines have been expanded and thresholds eased to help more startups access tax breaks and support for longer. Mint unpacks the changes, why they matter for founders, and how startups can leverage them.

- BY SAMIKSHA GOEL

1 What has the government changed in the rules for recognition of startups?

The government revised the Startup Recognition Framework under the Startup India Action Plan last week to make it more inclusive for scaling and innovation-led businesses. The turnover limit for startups has been raised from 100 crore to ₹200 crore to help growing firms retain recognition and benefits that officially recognized startups get. There's a new sub-category for deep-tech startups. These can now be recognized up to 20 years from incorporation instead of the 10-year timeline earlier, and with a turnover of up to ₹300 crore. The move notes the often inherently longer product development timelines and higher capital needs.

2 Have the new rules been expanded to beyond startups?