In a joint initiative to accelerate India's startup ecosystem, the Department for Promotion of Industry and Internal Trade (DPIIT) and the Small Industries Development Bank of India (SIDBI) have announced an expanded support framework for technology-led startups under the Startup India initiative. This strategic update strengthens India's position as one of the world's top three startup ecosystems globally.
New Incentives
The updated Startup India framework introduces significant benefits for DPIIT-recognised startups operating in sectors such as Fintech, Healthtech, EdTech, Deep Tech, and SaaS:
- Fund of Funds (FoF) Expansion: SIDBI's Fund of Funds corpus, managed through SEBI-registered Alternative Investment Funds (AIFs), now covers ₹10,000 crore for early-stage startups.
- Income Tax Exemption (Section 80-IAC): Eligible DPIIT-recognised startups can claim 100% income tax exemption for any three consecutive years within the first ten years of incorporation.
- Self-Certification Compliance: DPIIT-recognised startups are permitted to self-certify compliance under 9 labour and environmental laws for 3-5 years.
- Faster IPR Protection: Startups receive 80% rebate on patent filing fees and access to the dedicated IP Facilitation Centre under DPIIT.
Eligibility
To qualify for DPIIT recognition and access these benefits, startups must:
- Be incorporated as a Private Limited Company, LLP, or Registered Partnership Firm
- Be less than 10 years old from date of incorporation
- Have annual turnover not exceeding ₹100 crore in any financial year
- Be working towards innovation, development or improvement of products/processes/services
- Not be formed by splitting up or reconstruction of an existing business