Gujarat and Karnataka are the top states for creating startup ecosystems for aspiring entrepreneurs (DPIIT) according to the Department for Promotion of Industry and Internal Trade’s rating of states and Union territories. Meghalaya has been determined to be the top performer among minor states with a population under one crore.
The rankings are determined by the steps to build the startup environment and support aspiring business owners. Gujarat was ranked as having the best performance for the third time in a row. In order to help states and union territories (UTs) build local startup ecosystems and share best practices, this exercise was created.
The study included 24 states and 7 UTs, ranking them in the best performers, top performers, leaders, aspiring leaders, and developing startup ecosystems categories. West Bengal, Sikkim, Haryana, Jharkhand, and UT Lakshadweep were the four states that did not take part in the experiment.
The states and UTs were also rated according to these five categories, based on their populations of less than one crore. The top-performing states included Jammu and Kashmir, Kerala, Maharashtra, Odisha, and Telangana. The leaders category includes Punjab, Tamil Nadu, Uttarakhand, Uttar Pradesh, Andaman and Nicobar Islands, Arunachal Pradesh, and Goa. Chhattisgarh, Delhi, Madhya Pradesh, Rajasthan, Chandigarh, Puducherry, and Nagaland are among the states and UTs that fall under the category of aspirant leaders.
West Bengal, Sikkim, Haryana, Jharkhand, and UT Lakshadweep were the four states that did not take part in the experiment. Andhra Pradesh, Bihar, Mizoram, and Ladakh are among the states in the category of burgeoning startup ecosystems, according to the study. They were assessed based on 26 action points distributed across seven reform areas, including institutional support, promoting innovation, market access, incubation, and finance support.
Anurag Jain, the secretary of the DPIIT, claimed that the activity is essential to improving the nation’s business climate for new companies. Piyush Goyal, the minister of commerce and industry, here announced the states’ startup rankings for 2021. Goyal suggested all parties involved to strive to surpass the third-ranked start-up ecosystem in the world, where it now stands. Can we also have a look at some district-level competition? he questioned.
Additionally, he urged the states to cooperate and exchange best practices in order to further enhance the ecosystem. He claimed that by implementing programmes like the Fund of Funds, the Seed Fund Scheme, the income tax exemption for three years, and the resolution of the Angel Tax issue, the government has functioned as an accelerator for entrepreneurs rather than a controller.