G20 nations are expected to agree on a common definition for startups by July, enabling effective policymaking across members and potentially resolving current challenges surrounding the valuation and taxation of startups, Indian government officials said.

The foundation and alliances working group under the Startup-20 Engagement Group, created during India’s G20 presidency in 2023, is leading discussions to establish consistent terminology across member nations to define investments, funding, and other related terms for startups in the ecosystem.

A government official said, “We already have had two discussions on it, and we are hoping we will come out with a single communique by the fourth meeting that will define startups uniformly across G20 countries. It should be out by 3-4 July."

India’s department for promotion of industry and internal trade (DPIIT) currently defines a startup as an entity up to 10 years from its incorporation date, with sales of less than ₹100 crore in any financial year. There are over 97,000 recognized startups under DPIIT.