India’s State Startup Ranking: Gujarat Leads, Karnataka and Kerala Excel
The Indian government recently unveiled the second edition of its state startup ranking, aimed at fostering an entrepreneur-friendly environment across the country. Initiated by the Modi government, these rankings encourage states to cultivate innovation and entrepreneurship within their borders.
Overview of the 2019 Startup Ranking List
Minister of Commerce and Industry, Piyush Goyal, commended the states for their efforts in nurturing startups and highlighted three key recommendations for the startup ecosystem:
- Product: Encouraging startups to focus on developing innovative products relevant to contemporary needs.
- Processes: Emphasizing the importance of continually refining operational processes.
- People: Prioritizing consumer-centric ideas to drive innovation in the startup ecosystem.
Participation in the ranking exercise involved 22 states and 3 Union Territories. In addition to announcing the rankings, the government released a comprehensive report outlining strategies for further enhancing innovation at the state level.
Methodology and Evaluation Criteria
Conducted by the Department for Promotion of Industry and Internal Trade (DPIIT), the startup rankings assessed states based on performance across seven key categories:
- Institutional Support
- Easing Compliances
- Relaxation in Public Procurement Norms
- Incubation Support
- Seed Funding Support
- Venture Funding Support
- Awareness & Outreach
India’s Vibrant Startup Ecosystem
India boasts a thriving startup ecosystem, home to over 50,000 startups, including more than 30 unicorns. Notably, the country hosts approximately 9,300 tech startups and 1,600 deep tech startups, supported by 335 incubators and accelerators. Projections from the Nasscom-Zinnov report suggest that India will witness the emergence of 100 unicorns by 2025, generating over 1.1 million direct jobs.
DPIIT Recognition and Future Prospects
Presently, DPIIT recognizes 36,614 startups, reflecting the growing prominence of entrepreneurship in India. As the startup landscape continues to evolve, initiatives like the state startup rankings play a crucial role in fostering innovation, driving economic growth, and creating employment opportunities nationwide.
