Gujarat, Karnataka and Meghalaya were the best performers in developing startup Ecosystems for entrepreneurs last year, according to the latest ranking by the Centres Department for Promotion of and Internal Trade (DPIIT). Kerala, Maharashtra, Odisha, Telangana and J&K were in the next category of top performers.
In the previous report in 2019, Gujarat and Andaman and Nicobar Islands were best performers, while Karnataka and Kerala were top performers. There are three other categories: Leaders, aspiring leaders, and emerging startup ecosystems. Tamil Nadu, UP, and Punjab are among the eight states and UTs in the leaders category. TN and UP were in the emerging startup ecosystems category in 2019. Rajasthan, Delhi and MP are among the 11 in the aspiring leaders category.
The study looks at areas like institutional support to startups, access to markets, incubation support and funding support. This year, three areas were added to the framework, including capacity building of enablers, mentorship support and fostering innovation & Entrepreneurship. India has the worlds third biggest startup ecosystem, after the US and China.
The state-specific reports for each of the 31 participating entities include a comprehensive analysis of the respective ecosystem and an overview of the strengths and priority areas for the future. Policy interventions have been high on the governments agenda.
Karnataka was ranked best performer for launching an engineering research and development policy to attract sector-focused incentives, and creating regulatory sandboxes for startups to avail exemption from state and municipal laws.