The Ministry of Commerce and Industry recently released the results of the 3rd edition of the Ranking of States on Support to Startup Ecosystems. This public release came following a similar release from the Ministry featuring the Ease of Doing Business (EoDB) ranking, based on the comprehensive Business Reforms Action Plan (BRAP) report 2020.
Understanding the States’ Startup Ranking
A part of the Start-up India initiative of the Government of India, this particular ranking aims to foster a robust start-up ecosystem within the country. By nurturing innovation and providing opportunities to new entrepreneurs, this initiative encourages the growth of start-ups throughout the nation. It’s an annual activity conducted by the Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, since 2018.
The Role and Objectives of Start-up Ranking
This ranking exercise isn’t just a regulatory action, but it has some critical objectives. The foremost aim is to enlighten the progress made by States and Union Territories (UTs) in promoting the Startup ecosystem. It helps in fostering competitiveness and encouraging States/ UTs to put in more proactive efforts. Moreover, it aids States/ UTs in identifying and replicating best practices for the larger benefit of the ecosystem.
Classification Methodology
The states and Union Territories are grouped into five varied categories for the ranking process. These categories include Best Performers, Top Performers, Leaders, Aspiring Leaders, and Emerging Start-up Ecosystems.
Evaluation Criteria in Rankings 2021
The 2021 rankings were evaluated on seven key Reform Areas with a total of 26 Action Points. The scope of these points broadly range from providing institutional support, fostering innovation, ensuring access to market, incubation support, funding support, mentorship guidance, and building the capacity of enablers in the ecosystem.
Results of the 2021 Rankings
In the States category, Gujarat and Karnataka emerged as the Best Performers. Meghalaya stood out among the UTs and North-eastern States ranking category. Kerala, Maharashtra, Orissa, and Telangana bagged the Top Performers award in the states category. In the UTs and NE states category, Jammu and Kashmir emerged as the Top Performer.
Related Initiatives Supporting Startups
Several related initiatives have been launched to support the burgeoning Start-up landscape in India. These include the Open Network for Digital Commerce, Fisheries Startup Grand Challenge, Start Up India Fund, Policy Reforms for Startups, Startup Cells, National Startup Advisory Council, Aatmanirbhar Bharat, ARISE-Atal New India Challenge, and AIM-iCREST. These initiatives were instated to further nurture and support the start-up culture in India.
