On July 4, 2022, the result of the 3rd edition of the States’ Startup Ranking 2021 was announced by the Union Minister Piyush Goyal, Ministry of Commerce and Industry (MoCI) during an event held at The Ashok, New Delhi (Delhi). It was organized by the Department for Promotion of Industry and Internal Trade (DPIIT), MoCI.
- The Best Performer States are Gujarat and Karnataka in Category A, and Meghalaya in Category B.
- Gujarat has been judged as the Best Performer State for the third time in a row. There was special mention of the initiative taken by the Student Startup and Innovation Policy Cell (SSIP) of Gujarat’s education department.
Performance Categorization of States’ Startup Ranking 2021:
i.It is based upon States’ Startup Ranking Framework (SRF) 2020 which involves five grading groups viz. Best performers (Percentile: 100), Top Performers (Percentile: 60-99), Leaders (Percentile: 30-59), Aspiring Leaders (Percentile: 11-29), and Emerging Startups Ecosystems (Percentile: Up To 10).
ii.According to each States’ and UTs’ performance, they have been grouped in Category A and Category B.
- Category A includes States and UTs with a population of more than 1 crore (data from Census 2011).
- Category B includes States and UTs satisfying the criteria of: (a) All States/UTs with a population of less than 1 crore (b) All UTs except Delhi; and (c) All North-eastern States except Assam.
Table showing the Performance of the States/UTs as per above mentioned Categorization:
| Grading group | Category A | Category B |
|---|---|---|
| Best performers | Gujarat, Karnataka | Meghalaya |
| Top performers | Kerala, Maharashtra, Odisha, Telangana | Jammu & Kashmir |
| Leaders | Assam, Punjab, Tamil Nadu, Uttar Pradesh, Uttarakhand | Arunachal Pradesh, Andaman & Nicobar Islands, Goa |
| Aspiring leaders | Delhi, Chhattisgarh, Madhya Pradesh, Rajasthan | Chandigarh, Dadra & Nagar Haveli & Daman And Diu, Himachal Pradesh, Manipur, Nagaland, Puducherry, Tripura |
| Emerging startup ecosystems | Andhra Pradesh, Bihar | Ladakh, Mizoram |
A National Report titled ‘States’ Startup Ranking 2021: On Support to Startup Ecosystems’ was also released which can be accessed here. It is published by DPIIT.
Basis of Assessment:
The exercise for the States’ Startup Ranking 2021 was made by evaluating the measures undertaken during the period of 1st October 2019 to 31st July 2021 and witnessed highest ever participation of 31 states and UT’s i.e24 States and 7 UTs. It assessed the States’ performance across following 7 Reform Areas divided into 26 Action Points:
i.Institutional Support
ii.Access to Market
iii.Incubation Support
iv.Funding Support
v.Mentorship Support
vi.Capacity Development of Enablers
vii.Fostering Entrepreneurship and Innovation
v,vi,vii are the 3 new Reform Areas were introduced to the States’ Startup Ranking Framework
Key Points:
i.This 2021 ranking showed a significant improvement in startup culture across India, especially in UTs and smaller states.
ii.According to the Startup India website, there are more than 14,200 registered startups in Gujarat i.e. 6.70% of the startups in India.
iii.An important element of the startup ranking is the participation of women in the startup ecosystem. More than 1,500 startups led by women have been incubated across the country. Uttar Pradesh reported that over 200 startups in the state were led by women. Kerala has supported over 20 startups led by women
iv.India has become the 3rd largest start-up ecosystem in the world after United States and China, with 70,809 startups recognized by the government, and over 100 unicorns.
v.India observes January 16 as National Startup Day.
vi.DPIIT launched the State Startup Ranking Framework in 2018 to support innovation and entrepreneurship and strengthen the ecosystem in the states.
Recent Related News:
i.To promote private industry, Micro, Small & Medium Enterprises (MSME) and start-ups in defence production,Union Defence Ministry has allocated 25% of the Domestic Capital Procurement/Acquisition Budget, amounting to Rs 21,149.47 Cr has allocated for domestic private industry in Financial Year (FY)2022- 23.
ii.MoCI has extended the Foreign Trade Policy 2015-20 which was valid upto March 31, 2022 by another six months upto September 30, 2022 for boosting external commerce in goods and services. The Extension was issued by the Directorate General of Foreign Trade (DGFT).
About Startup Ecosystem in India:
- A startup defined as an entity that is headquartered in India, which was opened less than 10 years ago, and has an annual turnover less than ₹100 crore
- Startup Ranking Exercise was Initiated by Startup India, The Startup India initiative was launched in 2016 with a vision of ‘Startup India, Standup India’.
- The States’ Startup Ranking Exercise is one of its kind in the world was launched by DPIIT to create awareness of the Startup ecosystem and its associated activities.
- Government of India as part of Startup India initiative has implemented Fund of Funds for Startups (FFS) Scheme and Startup India Seed Fund Scheme (SISFS) across all States/UTs to promote private investment in the Startups through Alternative Investment Funds (AIFs) and incubators
- DPIIT launched FFS in 2016, a corpus of Rs. 10,000 crore and Small Industries Development Bank of India (SIDBI) is the implementing agency for the Scheme
