The Startup India is a flagship initiative of the Government of India, not a scheme or an act, managed by the Department for Promotion of Industry and Internal Trade (DPIIT). It was announced by Prime Minister Narendra Modi on August 15, 2015, and its Action Plan was unveiled on January 16, 2016, to build a strong ecosystem for nurturing innovation, accelerating economic growth, and generating employment.
The initiative works through a 19-point Action Plan focusing on simplification, funding support, and industry-academia partnership. Key mechanisms include the Fund of Funds for Startups (FFS), which has a corpus of ₹10,000 crore to meet funding needs, and the provision for eligible startups to receive tax exemptions on profits for three consecutive years. Startups can also self-certify compliance with certain labor and environmental laws, simplifying the regulatory regime. The initiative is closely connected to schemes like the Startup India Seed Fund Scheme (SISFS) and the Credit Guarantee Scheme for Startups (CGSS).
The framework was recently revised in February 2026 to strengthen the initiative. The general annual turnover limit for a recognized startup was increased from ₹100 crore to ₹200 crore. A new category for 'Deep Tech Startups' was introduced, extending the age limit for recognition to 20 years and the turnover limit to ₹300 crore. Additionally, the eligibility for recognition was extended to include cooperatives. The tax holiday for eligible startups was also extended until March 31, 2025, by the Finance Act 2024.