Centre mulls broader start-up definition to push AI, deep-tech innovation

The central government is considering expanding the definition of a start-up to encourage innovation beyond app-based models, with discussions underway to include emerging areas such as artificial intelligence (AI), deep technology and advanced manufacturing.

The revised definition could also bring cooperatives within the start-up ambit, enabling them to work on new technologies and innovation-led business models. There is also a proposal to allow existing start-ups to pivot towards deep-tech, helping strengthen their long-term growth trajectory. The objective is to push more companies towards research-led innovation and high-impact technologies, while ensuring that India’s start-up ecosystem is not limited to digital platforms and service-based models.

PM Modi bats for manufacturing, deep-tech focus

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The government’s thinking was echoed by Prime Minister Narendra Modi on Friday, as he called on Indian startups to focus on manufacturing, deep technology and global leadership.

Addressing an event marking National Startup Day and ten years of the flagship Startup India initiative at Bharat Mandapam, PM Modi said the next decade must position India at the forefront of global innovation. “What began as a government initiative has now become a nationwide movement. In just ten years, Startup India has turned into a revolution,” he said, adding that India is now the world’s third-largest start-up ecosystem.

Also Read: Startup India Mission has become a revolution, India to host AI Impact Summit in Feb: PM Modi

India’s start-up ecosystem at a glance

The prime minister said the number of start-ups in India has grown from fewer than 500 in 2014 to over two lakh today, including nearly 125 active unicorns. In 2025 alone, around 44,000 new start-ups were registered — the highest annual addition since the launch of Startup India.

“Today’s start-ups are becoming unicorns. Unicorns are launching IPOs and creating jobs. Last year alone saw the biggest jump in registrations,” PM Modi said.

Commerce and industry minister Piyush Goyal said Indian start-ups are now active across more than 50 sectors, including AI, machine learning, quantum computing and deep tech. DPIIT-registered start-ups have generated an estimated 21 lakh jobs, with over 50 start-ups being recognised every day.

AI Mission, GPUs and emerging tech push

Acknowledging challenges such as high computing costs, PM Modi said the India AI Mission is helping democratise access to technology, with over 38,000 GPUs onboarded to support smaller start-ups. “We are ensuring that indigenous AI is developed by Indian talent on Indian servers,” he said, adding that similar efforts are underway in semiconductors, data centres, green hydrogen and other strategic sectors. India will also host the AI Impact Summit in February 2026.

Highlighting the cultural shift driven by Startup India, PM Modi said risk-taking, once discouraged, has now become mainstream. “Earlier, entrepreneurship was limited to children from wealthy families. Today, youth from Tier-2 and Tier-3 cities, and even villages, are launching start-ups and solving real problems,” he said.

Also Read: Startup India completes a decade as policy push fuels global innovation growth

He also noted growing participation by women, with over 45 per cent of recognised start-ups having at least one woman director or partner, making India the world’s second-largest ecosystem for women-led start-up funding. The prime minister said access to capital has improved through initiatives such as the Fund of Funds for Startups, which has supported investments worth over Rs 25,000 crore, along with the Startup India Seed Fund and credit guarantee schemes.

Regulatory reforms, including the decriminalisation of over 180 provisions under the Jan Vishwas Act, have also reduced compliance burdens and encouraged innovation, he said.

Calling on entrepreneurs to move beyond services and digital platforms, PM Modi urged start-ups to focus on building world-class products. “India’s ambition should not be limited to participation. It must aim for global leadership,” he said, assuring continued government support. Startup India was launched on January 16, 2016, with the aim of promoting innovation, entrepreneurship and investment-led growth, and transforming India into a nation of job creators.