22-January-2024-Editorial

STATES STARTUP RANKING 2022

The Ministry of Commerce and Industry recently unveiled the results of the 4th edition of the “Ranking of States on Support to Startup Ecosystems,” reflecting the increasing dynamism of India’s startup landscape.

This comprehensive exercise, initiated by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Start-up India initiative, aims to foster innovation, entrepreneurship, and healthy competition among states and union territories (UTs).

Objective of States’ Startup Ranking:

The States’ Startup Ranking exercise is a crucial component of the Start-up India initiative, aiming to showcase and evaluate the progress made by states and UTs in promoting a conducive environment for startups.

The primary objectives include highlighting achievements, fostering competitiveness, and facilitating the identification and replication of best practices.

States and UTs are categorized into Best Performers, Top Performers, Leaders, Aspiring Leaders, and Emerging Start-up Ecosystems to acknowledge their efforts.

Key Findings of States’ Startup Ranking 2022:

• Participation: The 4th edition witnessed unprecedented participation, with 33 states and UTs actively engaging in the exercise.
• State Startup Policies: Celebrating the entrepreneurial spirit, 31 states/UTs have formulated dedicated State Startup Policies, indicating a proactive approach to nurturing startups.
• Reform Areas: The evaluation focused on seven reform areas, covering 25 action points such as institutional support, fostering innovation, market access, incubation, mentorship, funding, and sustainable development.
• Survey Feedback: A robust feedback mechanism was employed, with over 10,000 survey responses collected in nine languages, contributing to 15% of the total scores.

Status of Indian Startup Ecosystem:

• Growth: Over the past seven years, the number of recognized startups has exhibited a remarkable 120% Compound Annual Growth Rate (CAGR), surpassing one lakh startups by October 2023.
• Geographical Spread: The startup landscape has witnessed a sixfold increase in coverage, with startups now present in nearly 670+ districts across the country.
• Regional Presence: Notably, close to 50% of recognized startups are based in Tier 2 and Tier 3 cities, signifying the decentralization and broadening impact of the startup ecosystem.

Initiatives to Promote Startups:

• Funds of Funds (FoF) Scheme: Launched in 2016 with a corpus of Rs. 10,000 Cr, it aims to boost the ecosystem by facilitating access to domestic capital over the 14th and 15th Finance Commission cycles.
• Startup India Seed Fund Scheme (SISF): With a corpus of Rs. 945 Cr for 2021-22, SISF provides financial aid for proof of concept, prototype development, market entry, and commercialization.
• Investor Connect: Facilitates AI-based matchmaking, streamlining the pitching process for startups to connect with investors efficiently.
• Global Engagement: Startup20, established during the G20 India Presidency 2023, enhances India’s global standing as a startup hub and engages with G20 leaders on macroeconomic issues.

National Startup Awards 2023:

The National Startup Awards (NSA) is a flagship initiative recognizing outstanding startups and enablers contributing to India’s entrepreneurial landscape.

• Application Figures: The fourth edition received over 2,000 applications, showcasing the increasing acceptance and participation across the startup ecosystem.
• Inclusivity: The NSA actively engaged across diverse sectors and witnessed a notable presence of women in leadership positions, emphasizing inclusivity.
• Sustainability: A significant number of applications showcased a commitment to sustainability, focusing on climate change, waste management, renewables, and related sectors.

Conclusion:

The States’ Startup Ranking, coupled with initiatives like the Funds of Funds, Seed Fund Scheme, and Global Engagements, underscores the government’s commitment to fostering a vibrant startup ecosystem. The National Startup Awards further contribute to recognizing and rewarding exceptional contributions. The comprehensive approach, encompassing inclusivity and sustainability, reflects the evolving and dynamic nature of India’s entrepreneurial landscape.