Whalesbook
Gujarat Retains Top Spot in Startup Ecosystem Ranking
Gujarat has once again been recognized as India's premier startup ecosystem, securing the top position for the fifth consecutive year in the Department for Promotion of Industry and Internal Trade's (DPIIT) latest ranking. This initiative, part of the 'Start Up India' scheme, assesses states and union territories on their efforts to foster new ventures and entrepreneurs.
Category A Performance
In Category A, encompassing states and UTs with populations over 10 million, Gujarat achieved the highest percentile ranking (90-100). New Delhi was noted as the lowest performer in this group. Other significant performers included Karnataka, Punjab, Tamil Nadu, and Uttar Pradesh, ranked between 70-89 percentile, while Rajasthan, Kerala, Madhya Pradesh, Uttarakhand, Telangana, Maharashtra, Andhra Pradesh, and Haryana were designated as 'leaders' (50-69 percentile).
Smaller States Shine
Category B, for states and UTs with populations under 10 million, saw Arunachal Pradesh and Goa emerge as 'best performers'. Himachal Pradesh was a 'top performer', with Manipur, Nagaland, and Meghalaya also recognized. Aspiring leaders in this category included Mizoram, Sikkim, Tripura, and Andaman and Nicobar Islands, while several UTs were labeled 'emerging startup ecosystems'.
Evaluation Framework
The rankings were determined through a comprehensive evaluation of parameters such as institutional support, infrastructure, funding access, market reach, and innovation. These factors were assessed based on policy implementation, incubator availability, PE/VC deal volumes, mentorship, and sustainability efforts. The methodology weighted submitted documents from states at 75%, startup feedback at 15%, and private ecosystem mapping at 10%.
Future Focus: Manufacturing and Tech
The report arrives as India celebrates its position as the world's third-largest startup ecosystem, housing over 200,000 DPIIT-registered startups. Prime Minister Narendra Modi, speaking on the occasion of the fifth National Startup Day, urged entrepreneurs to concentrate on manufacturing and advanced technologies. He emphasized that while digital and service sectors have grown, strengthening manufacturing and technological capabilities is crucial for global recognition and driving economic growth and employment. The Prime Minister also highlighted government support for AI, semiconductors, data centers, and green hydrogen initiatives.