States’ Startup Rankings in India - A Support To Startup Ecosystem

States’ Startup Ranking Framework is an evolved evaluation tool aimed to strengthen the support of States and UTs to holistically build their startup ecosystems. Startup Ranking Framework 2020 has been developed as a more robust and outcome-oriented exercise and aims to achieve large scale progress across each State and UT.

The Department for Promotion of Industry and Internal Trade (DPIIT) is the body responsible for conducting the states’ startup ranking exercise and also releases the final report based on the performances of the states in India. The latest edition of the report was released on September 11, 2020.

Read in detail about the Startup India Scheme launched by Prime Minister Narendra Modi at the linked article. 

In this article, we bring to a brief summary of the States’ Startup Ranking in India, the top-performing states and the objectives for conducting this exercise. This is also an important topic from the IAS Exam perspective.

States’ Startup Ranking in India [UPSC Notes]:-Download PDF Here

States’ Startup Rankings Framework 2020

• The States’ Startup Ranking Framework has 7 broad reform area (also known as the seven pillars), consisting of 30 action points ranging from Institutional Support, Easing Compliances, Relaxation in Public Procurement norms, Incubation support, Seed Funding Support, Venture Funding Support, and Awareness & Outreach

• All states and union territories have been divided into two groups to ensure fairness and uniformity in the result. While UTs except for Delhi and all States in North East India except Assam are placed in Category ‘Y’. All other States and UT of Delhi are in Category ‘X’
• A total of 22 States and 3 Union Territories participated in the exercise
• For the purpose of evaluation, and to get the appropriate feedback from the beneficiaries, 60,000 calls in 11 different languages were made to ascertain the real situation
• For the purposes of Ranking, States are classified into the following 5 Categories: 
  • Best Performers
  • Top Performers
  • Leaders
  • Aspiring Leaders
  • Emerging Startup Ecosystems

(Source:https://www.startupindia.gov.in/content/dam/invest-india/compendium/National_Report_09092020-Final.pdf)

States’ Startup Ranking Report 2020 – Highlights

Given below is the list of states across the seven reform areas:

States’ Startup Ranking 2020 – Category X

States’ Startup Ranking 2020 – Category Y

Startup Landscape in India

The startup landscape in India is pervaded by dynamic statistics, ranging from the age of

founders to the soaring number of unicorns. However, it is imperative to recognise the starting

point as well as the growth potential of India’s startup story. Some key outcomes of India’s startup growth story as of 31st March 2020 are as follows:

The leading sectors which pervaded the startup landscape included:

1. Fintech – US$ 5.7 Billion
2. Enterprises – US$ 3 Billion
3. Health-Tech – US$ 1.4 Billion
4. E-Commerce –  US$ 11.7 Billion
5. Logistics –  US$ 1.2 Billion

During the COVID pandemic period, India Startups have come up with brilliant ideas & solutions to the many problems that the country & the world faced. 

What is a Unicorn Startup?

A unicorn is a term used to indicate a privately held startup company with a valuation of over $1 billion. In 2014, there were only five Unicorns in India. The number has increased significantly to 32 as of 2019, thereby making India the third-largest ecosystem of unicorns in the world after

USA and China. India created nine unicorns alone in 2019 which includes:

1. BigBasket
2. Dream11
3. Delhivery
4. Lenskart
5. Rivigo
6. Icertis
7. Druva
8. Ola Electric
9. Zoho

Some of the other prominent Indian Unicorns include Paytm, Oyo Rooms, BYJU’S, Snapdeal and Policybazaar.

States’ Startup Ranking in India [UPSC Notes]:-Download PDF Here

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