Gujarat ranked first, emerging as the best performer among states in India in the 2019 startup rankings released by the Ministry of Commerce & Industry on Friday.
Andaman & Nicobar was the best performer in the Union Territories category. This is the second time in a row that Gujarat has emerged as the best performer in the list of startup-friendly states.
Karnataka and Kerala emerged as second best performers. The ranking was done by the Department for Promotion of Industry and Internal Trade (DPIIT).
What Gujarat govt said about startup ranking
The Gujarat government in a release said the ranking was a reflection of the efforts put in by the state to foster startups. It said the recently revealed Gujarat Industrial Policy also makes provisions to promote startups through industrial support, sustenance allowance and skill development among others.
The ranking takes into consideration states efforts to foster innovation and entrepreneurship. Among other things, the ministry considered institutional support given to startups, ease of compliance, incubation and seed-funding support and awareness among others to come up with the ranking.
22 states and three Union Territories participated in the exercise. Haryana, Jharkhand, Punjab, Telangana and Uttarakhand were ranked as “aspiring leaders” category.
Andhra Pradesh, Assam, Chhattisgarh, Delhi, Himachal Pradesh, Madhya Pradesh, Sikkim, Tamil Nadu and Uttar Pradesh were listed as “emerging hubs” for startups, the report said.
Minister for Commerce and Industry Piyush Goyal also recommended that startups need to focus on product, processes, and people.
He said mutual funds, pension funds, insurance companies among others should also look at investing in startups. He praised the dedicated funds set up by some states and PSUs for startups in the country.
In the ranking for 2018, Gujarat was followed by Karnataka, Rajasthan, Odisha and Kerala.
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