Startup India Initiative

Startup India is India's flagship initiative to build a strong startup ecosystem that drives sustainable economic growth and employment. Launched in 2016 by the Department for Promotion of Industry and Internal Trade (DPIIT), the programme provides DPIIT recognition to eligible startups — and this recognition unlocks a package of regulatory benefits, tax exemptions, and funding access that can significantly reduce the cost of building a new business.

A DPIIT-recognised startup gets: 3-year income tax exemption (Section 80-IAC), 80% rebate on patent filing fees, self-certification compliance under 9 labour and 3 environmental laws, access to a ₹10,000 crore Fund of Funds managed by SIDBI, and exemption from angel tax (Section 56(2)(viib)). For tech startups in particular, the angel tax exemption alone can save significant capital in early fundraising rounds.

To get DPIIT recognition, apply at startupindia.gov.in. The process is entirely online and free. Eligibility: the entity must be incorporated or registered in India, not older than 10 years from incorporation, with annual turnover not exceeding ₹100 crore, and working towards innovation or improvement of products/services. Our editorial team verified the recognition criteria and tax benefits against the DPIIT official portal, July 2026.