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India Plans to Broaden Startup Definition for Deep-Tech, Cooperatives and Pivots

Officials describe a push for AI-led innovation with potential incentives under study.

Overview

  • Government sources say DPIIT recognition rules are likely to be updated to explicitly include deep-tech firms and cooperatives.
  • Recognised start-ups may be allowed to pivot into deep-tech fields, with possible financial incentives to support such shifts.
  • The initiative is framed as a boost to innovation, AI-related activity and employment across the start-up ecosystem.
  • No formal notification or implementation timeline has been issued, so existing eligibility criteria remain unchanged for now.
  • DPIIT data show over 200,000 recognised start-ups creating nearly 2.2 million jobs, with about half originating in Tier-II and Tier-III cities.