CHENNAI: Karnataka, Kerala and Tamil Nadu lead the State Startup Ranking 2022 as Best Performers, the top category in the ranking. The ranking was released by the Union Ministry of Commerce and Industry.
Tamil Nadu has consistently improved its position from 2018, and Kerala also emerged as the Best Performer after being in the second best rank for three straight years. Karnataka has been in the top spot for a second consecutive year.
Telangana has been named as Top Performing state, the second best category in the ranking. Union Minister for Commerce and Industry Piyush Goyal announced the results, which saw participation from 33 states and Union Territories (UTs). Since 2018, the Department for Promotion of Industry and Internal Trade (DPIIT) has been ranking the states’ policy efforts to build an ecosystem favourable to startup growth. It tracks the evolution of policies and overall efforts of states.
The 2022 ranking framework focused on seven reform areas- building institutional support, fostering innovation and entrepreneurship, access to market, Incubation and Mentoring support, funding support and capacity building for enablers. Gujarat has retained its position as the Best Performer start-up state in the country.
Maharashtra, Odisha, Punjab and Rajasthan are ranked as Top Performers. Andhra Pradesh, Assam, Madhya Pradesh, Uttar Pradesh and Uttarakhand have been ranked as leaders. Bihar and Haryana are listed as Aspiring Leaders and Chattishgarh, Delhi and Jammu and Kashmir are listed as Emerging Startup Ecosystems.
The report mentions that the number of recognised start-ups has grown at 120% (CAGR) over the last 7 years and stands at over one lakh start-ups as on October 2023. The report also highlighted that the average years from the first funding round to IPO has come down from 9.9 years in 2022 to 9.4 years in 2023.
Gujarat retains Best Performer spot
Gujarat has retained its position as the ‘Best Performer’ start-up state in the country. The 2022 States Startup Ranking was released on Tuesday by Union Minister for Commerce Piyush Goyal. Since 2018, Gujarat has bagged the ‘Best Performer’ award. Maharashtra, Odisha, Punjab and Rajasthan are ranked as Top Performers.