India has revised its startup regulatory framework with the aim
of supporting innovation and strengthening the startup ecosystem.
On 4 February 2026, the Ministry of Commerce and Industry, through
the Department for Promotion of Industry and Internal Trade
(‘DPIIT'), issued Gazette Notification
G.S.R. 108(E) (‘New
Framework'). This New Framework supersedes
the earlier framework issued under G.S.R. 127(E), dated 19 February
2019.
The significant changes under the New Framework include an
increase in the turnover threshold for startup recognition. The
earlier framework set the maximum limit at INR 100 crore (Indian
Rupees One Hundred Crore only), whereas the New Framework raises
this threshold to INR 200 crore (Indian Rupees Two Hundred Crore
only). This expansion of eligibility criteria allows growth-stage
entities to continue accessing startup-linked regulatory and tax
benefits for a longer period.