UPSC Prelims Practice Questions — Government Revises Startup Recognition Framework to Strengthen Startup India Action Plan

Q1. Under the revised Startup Recognition Framework notified in 2026, a 'Deep Tech Startup' enjoys relaxed eligibility norms. For such a startup, DPIIT recognition is available for up to what period from the date of incorporation, and up to what annual turnover ceiling?

  • A. Up to 20 years; turnover up to ₹300 crore
  • B. Up to 10 years; turnover up to ₹200 crore
  • C. Up to 20 years; turnover up to ₹500 crore
  • D. Up to 15 years; turnover up to ₹300 crore

Q2. With reference to how the 2026 revised Startup Recognition Framework differs from the earlier 2019 norms, consider the following statements: 1. The general turnover ceiling for startup recognition has been raised from ₹100 crore to ₹200 crore. 2. The general age limit for recognition has been raised from 10 years to 15 years from the date of incorporation. 3. For Deep Tech startups the recognition age limit has been doubled relative to the general limit, to 20 years. Which of the statements given above is/are correct?

  1. The general turnover ceiling for startup recognition has been raised from ₹100 crore to ₹200 crore.
  2. The general age limit for recognition has been raised from 10 years to 15 years from the date of incorporation.
  3. For Deep Tech startups the recognition age limit has been doubled relative to the general limit, to 20 years.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q3. With reference to the origin and administration of the Startup India Action Plan, consider the following statements: 1. It was launched on 16 January 2016 by the Prime Minister. 2. It is implemented solely by NITI Aayog, without the involvement of any ministry or department. 3. 16 January has been observed as National Startup Day every year since 2022. Which of the statements given above is/are correct?

  1. It was launched on 16 January 2016 by the Prime Minister.
  2. It is implemented solely by NITI Aayog, without the involvement of any ministry or department.
  3. 16 January has been observed as National Startup Day every year since 2022.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q4. The 'Startup India Action Plan' unveiled in January 2016 is best described as which one of the following?

  • A. A 19-point action plan spanning simplification and handholding, funding support, and industry-academia partnership and incubation
  • B. A statutory scheme created through a dedicated Act of Parliament
  • C. A constitutional provision inserted under the Directive Principles of State Policy
  • D. A five-year centrally sponsored scheme with a fixed 60:40 centre-state funding pattern

Q5. With reference to the Startup India Fund of Funds 2.0, consider the following features: 1. A total corpus of ₹10,000 crore. 2. SIDBI designated as an Implementation Agency for the scheme. 3. Direct equity investment by the government into individual recognised startups. 4. Contributions spread across the 16th and 17th Finance Commission cycles. Which of the above is/are correctly identified?

  1. A total corpus of ₹10,000 crore.
  2. SIDBI designated as an Implementation Agency for the scheme.
  3. Direct equity investment by the government into individual recognised startups.
  4. Contributions spread across the 16th and 17th Finance Commission cycles.
  • A. 1, 2 and 4
  • B. 2, 3 and 4
  • C. 1, 3 and 4
  • D. 1, 2, 3 and 4

Q6. Which one of the following institutions has served as the primary implementing agency channelling the Fund of Funds for Startups (FFS) corpus into SEBI-registered Alternative Investment Funds?

  • A. Small Industries Development Bank of India (SIDBI)
  • B. National Bank for Agriculture and Rural Development (NABARD)
  • C. Reserve Bank of India (RBI)
  • D. Securities and Exchange Board of India (SEBI)

Q7. As on 31 January 2026, approximately how many entities had been recognised as startups by the DPIIT under the Startup India initiative?

  • A. About 2.12 lakh
  • B. About 1.59 lakh
  • C. About 92,000
  • D. About 3.50 lakh

Q8. The formal recognition of an entity as a 'startup' and the annual observance of National Startup Day are administered by which one of the following?

  • A. Department for Promotion of Industry and Internal Trade (DPIIT)
  • B. Small Industries Development Bank of India (SIDBI)
  • C. Securities and Exchange Board of India (SEBI)
  • D. Ministry of Micro, Small and Medium Enterprises (MSME)

Q9. The eligibility conditions for DPIIT recognition of startups are foundationally prescribed under which one of the following notifications?

  • A. G.S.R. 127(E) dated 19 February 2019
  • B. G.S.R. 501(E) dated 23 May 2017
  • C. G.S.R. 180(E) dated 16 January 2016
  • D. G.S.R. 364(E) dated 11 April 2018

Q10. Consider the following pairs of eligible entity type and its governing statute for DPIIT startup recognition: 1. Private Limited Company — Companies Act, 2013 2. Limited Liability Partnership — Limited Liability Partnership Act, 2008 3. Registered Partnership Firm — Indian Partnership Act, 1932 4. Multi-State Cooperative Society — Companies Act, 2013 Which of the above pairs is/are correctly matched?

  1. Private Limited Company — Companies Act, 2013
  2. Limited Liability Partnership — Limited Liability Partnership Act, 2008
  3. Registered Partnership Firm — Indian Partnership Act, 1932
  4. Multi-State Cooperative Society — Companies Act, 2013
  • A. 1, 2 and 3
  • B. 1, 2 and 4
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4

Q11. Under the revised framework's extension of startup recognition to cooperative entities, such cooperatives are drawn from how many distinct categories of cooperative legislation?

  • A. Two
  • B. One
  • C. Three
  • D. Four

Q12. With reference to the institutional architecture of the Startup India ecosystem, consider the following: 1. DPIIT is the nodal department that grants startup recognition. 2. The Inter-Ministerial Board (IMB) certifies startups for income-tax exemption under Section 80-IAC. 3. SIDBI is the agency through which the Fund of Funds corpus is routed into Alternative Investment Funds. 4. SEBI is the authority that issues DPIIT startup recognition certificates. Which of the above is/are correctly identified?

  1. DPIIT is the nodal department that grants startup recognition.
  2. The Inter-Ministerial Board (IMB) certifies startups for income-tax exemption under Section 80-IAC.
  3. SIDBI is the agency through which the Fund of Funds corpus is routed into Alternative Investment Funds.
  4. SEBI is the authority that issues DPIIT startup recognition certificates.
  • A. 1, 2 and 3
  • B. 1, 3 and 4
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4