Gujarat, Karnataka, and Meghalaya have been ranked as the best performers, amongst States and Union Territories, in developing a conducive start-up ecosystem for entrepreneurs.

Gujarat and Karnataka were adjudged the best performers, with a 100 percentile score in “category A” of States and UTs with a population of more than 1 crore (Census 2011). Meghalaya placed first in “category B,” including States and UTs with a population of less than 1 crore (except Delhi), according to the latest edition of the States’ Start-up Ranking released by Commerce and Industry Minister Piyush Goyal on Monday, .

A total of 24 States and 7 union territories (UTs) participated in the exercise, which ranked them under five categories — best performers, top performers, leaders, aspiring leaders, and emerging startup ecosystems.

Goyal said that ONDC (Open Network for Digital Commerce), being developed by the government, had the power to spawn thousands of start-ups. “ UPI has democratised the payment system in India. In the next five years, we will have ONDC democratise e-commerce across India... Rather than three companies being 100 billion or one trillion size, you will have a thousand companies each of a billion dollasr,” the Minister said.

Ranking methodology

The rankings are based on the initiatives taken to develop the start-up ecosystem . The exercise assessed the States’ performance across seven reform areas divided into 26 action points, according to an offiical release issued by the Commerce & Industry Ministry. These included institutional support, fostering innovation and entrepreneurship, access to market, incubation support, funding support, mentorship support and capacity building of enablers.

Kerala, Maharashtra, Odisha, and Telangana were ranked top performers in “category A” with a score of 60-69 percentile, while Jammu & Kashmir was the top performer in “category B”.

In the third rung of leaders with a score of 30–59 percentile were Assam, Punjab, Tamil Nadu, Uttar Pradesh, and Uttarakhand in “category A,” while Arunachal Pradesh, Andaman & Nicobar Islands, and Goa were ranked leaders in category B.

Delhi faired poorly, being clubbed in the aspiring leaders category with Chhatisgarh, Madhya Pradesh and Rajasthan with a score of 11-29 percentile. Chandigarh, Dadar & Nagar Haveli & Daman, and Diu, Himachal Pradesh, Manipur, Nagaland, Puducherry, and Tripura were ranked as “aspiring leaders” in category B.

At the bottom of the rung were the “emerging startup ecosystems”, Andhra Pradesh and Bihar, with a score of up to 10 percentile. In “category B”  Ladakh and Mizoram were ranked the same.

Feedback was gathered from more than 7,000 beneficiaries through surveys made in 13 different languages

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