Gujarat, Karnataka and Meghalaya have been ranked as India's top states for startups as they provide the best support environment in the country for the firms to set up, build and proliferate.
As many as 31 states and union territories were assessed based on their performance across seven reform areas, divided into 26 action points, showed the States' Startup Ranking 2021 report released by the Ministry of Commerce and Industry's Department for Promotion of Industry and Internal Trade.
The reform areas were:
Institutional support.
Fostering innovation and entrepreneurship.
Access to market.
Incubation support.
Funding support.
Mentorship support.
Capacity building of enablers.
The states were divided into two categories: A and B, to bring all states and Union Territories on a "level playing field".
Category A included states and Union Territories with a population of more than 1 crore. Category B included all Union Territories except Delhi, all northeastern states except Assam, and states which have a population of less than 1 crore.
Gujarat and Karnataka topped category A, while Meghalaya was the winner in category B. The three states were termed "best performers".
Karnataka, home to Bengaluru—widely known as the country's 'Silicon Valley'—has the headquarters of Flipkart, Udaan, Dunzo and Razorpay, among other startups.
"While a large number of states and Union Territories are advancing towards developing a favourable environment for nurturing startups, many areas of the ecosystem still have scope for improvement," the report said.
The 2022 ranking exercise will focus on sustainable development goals and climate resilience, integration of entrepreneurship in education, and universal accessibility of information, the report said.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
