On the occasion of National Startup Day 2024, Gujarat has once again proven its prowess in the startup ecosystem by clinching the title of the best-performing state. Piyush Goyal, the Minister of Commerce & Industry, made the announcement, highlighting Gujarat’s consistent leadership in fostering a robust environment for startups.
The States’ Startup Ranking 2022, released by the Department for Promotion of Industry and Internal Trade (DPIIT), showcased Gujarat at the forefront, followed by Karnataka, Kerala, Tamil Nadu, and Himachal Pradesh.
Results
The results of the 4th edition of the States’ Startup Ranking 2022 were disclosed at a ceremony held in Bharat Mandapam, New Delhi, on National Startup Day. The meticulous evaluation process highlighted Gujarat as the Best Performer, maintaining its top position since 2018. In 2019, the Andaman and Nicobar Islands joined the elite group of high achievers, marking a noteworthy addition to the top-performing states.
Categories and Grading
States and Union Territories were categorised into five groups based on their performance in various reform areas, with scores converted into percentiles. The ranking system showcased the relative performance of each entity, with similar percentile scores grouped into specific grading categories.
Best Performing States
Gujarat and the Andaman and Nicobar Islands consistently held the prestigious position of leading states and Union Territories with model startup ecosystems. This trend was observed in both 2019 and 2018.
Top Performing States
States like Karnataka and Kerala exhibited significant growth in their startup ecosystems, transitioning from top performers in 2018 to the best performers in 2021. Maharashtra, Odisha, Telangana, and Jammu and Kashmir also joined the ranks of top-performing states.
Leader States
States continuously working towards building effective startup ecosystems, including Assam, Punjab, Tamil Nadu, Uttar Pradesh, Uttarakhand, Arunachal Pradesh, and Andaman and Nicobar Islands, were acknowledged for their efforts.
Aspiring Leader States
Recognized for their initiatives to support startups, this category included Delhi, Chhattisgarh, Madhya Pradesh, Rajasthan, Chandigarh, Dadra and Nagar Haveli and Daman and Diu, Himachal Pradesh, Manipur, Nagaland, Puducherry, and Tripura.
Emerging Startup Ecosystems
States on the path of developing their startup ecosystems, such as Andhra Pradesh, Bihar, Ladakh, and Mizoram, were recognized for their efforts.
Fostering Competition and Encouraging Growth
The State Startup Ranking Exercise aims to foster competition among states and Union Territories, encouraging them to create a more favourable ecosystem for startups. The participants are categorised based on their initiatives to encourage and strengthen the startup ecosystem within their jurisdictions.
Ranking Framework and Participation
The ranking framework included seven reform areas with a total of 25 action points, achieving a score of 85 marks and an overall score of 100 marks, including feedback exercises. This edition witnessed the highest participation across all editions, with 33 states and Union Territories actively contributing to the rankings. To ensure uniformity and standardisation, the entities were divided into Category-A (Population more than 1 crore) and Category-B (Population less than 1 crore).
As Gujarat continues to lead the charge in fostering a conducive environment for startups, the States’ Startup Ranking 2022 serves as a roadmap for others to emulate and elevate their entrepreneurial ecosystems.
