Gujarat, Karnataka, Kerala, TN offer best ecosystem for startups

Gujarat, Karnataka, Kerala, and Tamil Nadu offer the best environment for startups among big states, while Himachal Pradesh topped the rankings among smaller states, a government survey showed.

The ranking of the states with the best startup ecosystems, compiled by the department for promotion of industry and internal trade, also featured Maharashtra, Odisha, Punjab, Rajasthan, and Telangana as “top performers” among big states.

States and union territories were categorized based on their population to ensure a fair comparison. The first category comprised states and union territories with a population above 10 million, while the other category included those with a population below 10 million.

Chhattisgarh, Delhi and Jammu and Kashmir were adjudged emerging ecosystems among large states in the study.

Among the smaller states, Arunachal Pradesh and Meghalaya were “top performers”, while Chandigarh, Dadra and Nagar Haveli and Daman and Diu, Ladakh, Mizoram, Puducherry, and Sikkim were recognized as emerging ecosystems.

The evaluation of the participants was based on a comprehensive framework comprising seven key reform areas, each containing a total of 25 specific action points, a government release said.

These areas included a range of factors crucial for a startup’s success, such as institutional support, fostering innovation and entrepreneurship, market access, incubation and mentorship, funding support, capacity building for key players in the ecosystem, and strategies for long-term sustainability, it added.

The assessment process included a significant component of stakeholder feedback. About 15% of the total scores were calculated from about 10,000 survey responses, collected through both telephonic and web-based platforms, and available in nine different languages.

Addressing the Startup Awards and State Ranking Awards function, trade minister Piyush Goyal identified tourism as a sector with untapped potential, encouraging startups to explore innovative ideas around sustainable tourism.

Goyal also pitched the ‘Wed-in-India’ theme for potential startups, while emphasizing on the importance of new-age skills, futuristic technology, AI, and innovation as key priorities.

“India has emerged as the third-largest startup ecosystem globally, realizing the dreams of countless entrepreneurs and introducing innovative ways of doing business,” Goyal added.