Gujarat, Karnataka, and Meghalaya are among the states emerging as best performers in the third edition of the States Startup Ranking 2021.

States' ranking: This is an exercise aimed at the ranking of states and Union territories (UTs) on the support in developing their startup ecosystem and learning from each other’s best practices.

• The latest edition of the ranking comes amidst the government’s increasing focus on empowering states to be the key driver in the national plan for a bigger startup system.

• “The biggest role has to be played by states. We can play a facilitative role,” says Anurag Jain, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), which has been conducting the ranking exercise.

The third edition: This edition, after two successive rounds since 2018, recorded the highest participation of 31 states/UTs to date.

• The consideration period was 1 October 2019 to 31 July 2021.

• The documentary evidence submitted was evaluated over a six-month period by a committee comprising representatives from 19 government departments and 29 non-government stakeholders for fair and transparent evaluation.

• The 2021 ranking showcases the support being extended by over 30 states and UTs through startup policies to the ecosystem, in stark contrast to only four states having such policies prior to 2016.

The Centre’s policy to leverage cooperative and competitive federalism to achieve all-round growth appears to be paying dividends.

Commerce Minister Piyush Goyal is keen that states learn from each other and more startups come on board the Government E-Marketplace (GeM).

How states fared: Gujarat, Karnataka, Meghalaya, Kerala, and Telangana were among the best performers. Here's a quick look at a few states and UTs.

• Best-performer Gujarat has two funds established to provide support to startups and has 160+ startups supported with financial assistance.

• Karnataka has disruptive policies introduced in sectors such as engineering R&D, electric transport, and electronic system design and manufacturing. It has close to 100 supported startups with a rural impact.

• Meghalaya shines from the North East. It has a dedicated nodal agency (PRIME Meghalaya) with a model startup portal, more than 10 women-led supported startups, and 45-plus incubated startups.

• Kerala is credited with practices like a dedicated nodal agency with a model startup portal, a clear definition of women-led startups, with more than 20 such startups supported and more than 10 departments promoting startups.

• Telangana has established a model state startup portal with translation into three languages, a clear definition of women-led startups and a women-focused incubator, more than 10 departments promoting startups, and more than 15 programmes conducted to connect startups with investors.

• Maharashtra’s robust startup registration mechanism enables 12,000-plus startups. It has over 500 programmes to support student entrepreneurs, 20-plus established network of incubators, over 150 startups incubated, and has conducted two acceleration programmes attended by more than 85 startups.

• Odisha, another top-performing state, has more than 120 startups connected with 150 registered mentors, collaboration with the MSME Department, STPI, MeitY, and the Electronics and IT Department.

• Jammu and Kashmir is a top performer with a startup registration mechanism enabling over 200 startups and 15-plus programmes to promote the entrepreneurial spirit.

• Tamil Nadu boasts of robust startup registration mechanism enabling 2,700-plus startups and five disruptive policies introduced in sectors such as EVs, AI, and blockchain.

The future of startups in India looks promising. With self-reliance as the main mantra and the private sector taking the lead in development, states will have even more incentive to provide a better startup ecosystem.

Read More: States Start-Up Ranking 2021: Gujarat, Karnataka, Meghalaya Declared Best Performers; Here's How Other States Fared