Tamil Nadu, Kerala, Karnataka, Gujarat and Himachal Pradesh were the best performers in the ‘States’ Start-up Ranking for 2022’ released by the Department for Promotion of Industry and Internal Trade (DPIIT) on Tuesday.

The laggards, designated as `emerging ecosystems’, included Delhi, Chattisgarh and J&K, per the report.

The States’ Start-up Ranking is a yearly capacity-building exercise created and released by DPIIT that evaluates all States and UTs in the country on their efforts to build an ecosystem conducive to start-up growth.

Start-up & State Ranking Awards

Addressing the Start-up Awards & State Ranking Awards event in New Delhi, Commerce & Industry Minister Piyush Goyal outlined key initiatives that will be taken to further support start-ups, including the categorisation of start-ups into different sectors for more focused interactions, the sanitisation of data to identify their locations and track development stage of the start-ups, and efforts to ensure all start-ups are registered on the DPIIT portal.

“The Minister noted that India has emerged as the third-largest start-up ecosystem globally, realising the dreams of countless entrepreneurs and introducing innovative ways of doing business. Expressing appreciation for the achievements in sectors like millets and food processing, Minister Goyal urged start-ups to focus on new areas such as artificial intelligence (AI),” per an official release. 

Classification categories

States and UTs are classified into five categories–best performers, top performers, leaders, aspiring leaders and emerging start-up ecosystems–for the purpose of ranking.

While Himachal Pradesh was the best performer amongst States’ with population less than 1 crore (category `B’), Gujarat, Kerala, Karnataka and Tamil Nadu topped the list of States with over 1 crore population (category `A’ ).

Maharashtra, Odisha, Punjab, Rajasthan and Telangana were clubbed in the second rank of ‘top performer’ States in category ‘A’. crore. In category ‘B’, Arunachal Pradesh and Meghalaya were judged as ‘top performers’.

The `emerging ecosystems’, which is the lowest rank in the report, included Delhi, Chattisgarh and J&K for category ‘A’ and Chandigarh, Dadra and Nagar Haveli and Daman and Diu, Ladakh, Mizoram, Puducherry and Sikkim for category `B’.

Reform areas identified

A total of 25 action points were used to map a combination of absolute, relative, and feedback-based grading in order to give a comprehensive picture of the state’s or support UT’s distinctive startup environment.

New reform areas identified for the states include Institutional support for entrepreneurship and innovation; equitable access to resources, funding and market incubation; mentorship support; enabling capacity building; future readiness; and focus on sustainability.