India's DPIIT Launches Startup Playbook 2025, Boosting Ecosystem with New Benefits
The Department for Promotion of Industry and Internal Trade (DPIIT) has launched the Startup Playbook 2025, a comprehensive guide for entrepreneurs navigating the Startup India initiative. This comes as India's startup ecosystem continues to flourish, with 190,000 recognized startups generating over 1.9 million jobs and attracting significant funding.
The Playbook introduces regulatory freedoms under the Companies Act, 2013, exempting startups from filing cash flow statements, allowing flexible board meetings, and enabling sweat equity up to 50% of paid-up capital. It also offers financial incentives such as a 100% income tax exemption for three consecutive years and deferred taxation on ESOPs. Additionally, it relaxes norms for carrying forward and setting off losses.
To qualify for DPIIT recognition, a business must be under 10 years old, registered as a private limited company, LLP, or partnership, have an annual turnover below ₹100 crore, and demonstrate innovation or scalability. This recognition opens doors to numerous benefits, including taxation relief, easier compliance, access to schemes, faster IP support, and more.
India's startup scene is booming, with 118 unicorns and total funding projected to reach $15 billion in 2025. Emerging technologies like AI, deep tech, and generative models are driving this growth. Notably, more than 51% of Indian startups now emerge from non-metro regions, indicating a spread of entrepreneurial activity beyond major cities.
The Startup Playbook 2025, along with schemes like the Fund of Funds for Startups (FFS) and the Startup India Seed Fund Scheme (SISFS), is empowering Indian entrepreneurs. With over 21,000 new ventures added in the first half of 2025 alone, India's startup ecosystem continues to thrive, creating jobs and driving innovation.
