Department for Promotion of Industry and Internal Trade (DPIIT)

DPIIT – Startup India

The Department for Promotion of Industry and Internal Trade (DPIIT), under India's Ministry of Commerce and Industry, is the nodal authority for the Startup India initiative — the Government of India's flagship programme launched on 16 January 2016 to build a world-class startup ecosystem. Originally established in 1995 as the Department of Industrial Policy and Promotion (DIPP) and renamed in 2019, DPIIT operates from New Delhi as the policy backbone for all startup-related regulations, incentives, and government schemes.

Recognition & Core Benefits

DPIIT recognition is the single most important credential an early-stage Indian startup can obtain. As of 2025, DPIIT has recognised over 1,97,000+ startups — making India the world's third-largest startup ecosystem with over 21 lakh jobs created. To qualify, an entity must be incorporated as a Private Limited Company, LLP, or Registered Partnership Firm; be no more than 10 years from incorporation; have annual turnover not exceeding ₹200 crore; and be working on an innovative product, process, or service with high scalability potential.

Key Schemes & Programmes

Fund of Funds for Startups (FFS): ₹10,000 crore corpus channelled through SIDBI into 120+ SEBI-registered AIFs, which invest in DPIIT-recognised startups. FFS 2.0 of ₹10,000 crore was announced in 2024.

Startup India Seed Fund Scheme (SISFS): Grants up to ₹20 lakh for proof-of-concept and prototyping; up to ₹50 lakh as soft loans or convertible debentures for market entry, through selected incubators.

Credit Guarantee Scheme for Startups (CGSS): Enables collateral-free debt funding up to ₹10 crore per startup.

Tax Exemptions: Three-year income tax holiday on profits (Sec 80-IAC); deferred taxation on ESOPs; angel tax exemption on investments from recognised investors.

Fast-Track IP: Patent filing fees reduced by 80%; trademark fees cut by 50%; expedited examination for DPIIT-recognised startups.

Regulatory Relief: Self-certification for 9 labour laws and 3 environmental laws for up to 3–5 years.

Who Should Apply

Any incorporated Indian entity — from first-time founders at ideation stage to revenue-generating growth-stage companies — should obtain DPIIT recognition as a first step, since most government schemes and state-level benefits are gated behind it. Especially valuable for deep-tech, hardware, agritech, health, and SaaS startups seeking grants, subsidised IP filings, and government procurement opportunities.