States' Startup Ranking 2023:..And The Best Performance Award Again Goes To...?

Today, on National Startup Day 2024, DPIIT releases the States’ Startup Ranking 2023. Which are the Best Performing States and which states have the emerging startup ecosystems? Read the article for all the details.

Swati Dayal
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Gujarat Best Performer

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Today the National Startup Day 2024 witnesses Gujarat once again securing its position as the best-performing state in the startup ecosystem, as announced by Piyush Goyal, Minister of Commerce & Industry. The Department for Promotion of Industry and Internal Trade (DPIIT) released the eagerly awaited States’ Startup Ranking 2023 today. The top five states leading the charge in fostering robust startup ecosystems are Gujarat, Karnataka, Kerala, Tamil Nadu, and Himachal Pradesh.

After undergoing a meticulous evaluation process, the results of the 4th edition of the States’ Startup Ranking 2022 were unveiled on National Startup Day at an event held in New Delhi at Bharat Mandapam. Gujarat emerged as the Best Performer, maintaining its top position consistently since 2018. In 2019, the Andaman and Nicobar Islands also joined the elite group of high achievers.

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Categories and Grading for the National Startup Ranking

States and Union Territories were classified into five groups based on their performance in various reform areas. The scores were converted into percentiles to showcase the relative performance of each entity. Those with similar percentile scores were further grouped into grading categories.

Which Are The Best Performing States?

These are the leading states and UTs with model startup ecosystems. Gujarat and the Andaman and Nicobar Islands have consistently held this prestigious position.

In 2019, Andaman and Nicobar Islands and Gujarat were the best performers while in 2018 only Gujarat was the state to make to this list.

Best Performing States

Which Are The Top Performing States?

States showing significant growth in their startup ecosystems and actively nurturing entrepreneurs. Karnataka and Kerala transitioned from top performers in 2018 to best performers in 2021, with Maharashtra, Odisha, Telangana, and Jammu and Kashmir joining the ranks.

In 2019, Karnataka and Kerala were among the top performing states while in 2018 Karnataka, Kerala, Rajasthan and Odisha were in the list.

Top Performing State

Which Are The Leader States?

States continuously working towards building an effective startup ecosystem, including Assam, Punjab, Tamil Nadu, Uttar Pradesh, Uttarakhand, Arunachal Pradesh, and Andaman and Nicobar Islands.

The leaders of 2019 were Bihar, Maharashtra, Odisha, Rajasthan, Chandigarh while the leaders of 2018 included Andhra Pradesh, Bihar, Chhattisgarh, Madhya Pradesh and Telangana.

Leader State

Which Are The Aspiring Leader States?

Recognized for their efforts in identifying and formulating initiatives to support startups. This category includes Delhi, Chhattisgarh, Madhya Pradesh, Rajasthan, Chandigarh, Dadra and Nagar Haveli and Daman and Diu, Himachal Pradesh, Manipur, Nagaland, Puducherry, and Tripura.

In 2019, the list included Haryana, Jharkhand, Punjab, Telangana, Uttarakhand and Nagaland while 2018 Haryana, Himachal Pradesh, Jharkhand, Uttar Pradesh, West Bengal were the aspiring leaders in the startup ecosystem.

Aspiring Leaders State

Which Are The Emerging Startup Ecosystems?

States on the path of developing their startup ecosystems, such as Andhra Pradesh, Bihar, Ladakh, and Mizoram.

Andhra Pradesh, Assam, Chhattisgarh, Delhi, Himachal Pradesh, Madhya Pradesh, Tamil Nadu, Uttar Pradesh, Mizoram, Sikkim had the emerging startup ecosystem in 2019 while Assam, Delhi, Goa, Jammu and Kashmir, Maharashtra, Punjab, Tamil Nadu, Uttarakhand made to the list in 2018.

Emerging States

Fostering Competition and Encouraging Growth

"The State Startup Ranking Exercise aims to foster competition among states and UTs, encouraging them to create a more favorable ecosystem for startups. The participants are categorized based on their initiatives to encourage and strengthen the startup ecosystem within their jurisdictions," says the Report.

Ranking Framework and Participation

The ranking framework included seven reform areas with a total of 25 action points, with a score of 85 marks and an overall score of 100 marks, including feedback exercises. This edition witnessed the highest participation across all editions, with 33 states and Union Territories actively contributing to the rankings. To ensure uniformity and standardization, the entities were divided into Category-A (Population more than 1 crore) and Category-B (Population less than 1 crore).

As Gujarat continues to lead the charge in fostering a conducive environment for startups, the States’ Startup Ranking 2022 serves as a roadmap for others to emulate and elevate their entrepreneurial ecosystems.

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