Gujarat retains top spot in DPIIT's states start-up ecosystem rankings 2019

India has become the third-largest start-up ecosystem in the world with over 36,000 enterprises recognised under the Startup India initiative

Gujarat has occupied the top spot in Department for Promotion of Industry and Internal Trade’s (DPIIT’s) State Startup Rankings 2019 for the second year in a row. Karnataka and Kerala were the other top performers.

A proactive mechanism to identify regulatory issues from disruptive sectors, conceptualising iCreate (one of the largest start-up incubators in the country), and its student start-up and innovation policy helped Gujarat bag the Best Performer tag, according to a presentation released by DPIIT on Friday.

Andaman & Nicobar bagged the top spot among Union Territories (UTs). A total of 22 states and three UTs participated in the exercise.

Piyush Goyal, minister of commerce, who released the results in New Delhi, said: "I'm sure the announcements will go a long way in more promotion of start-ups by the central government as well as states and UTs. It boosts the spirit of competitive federalism and encourages more collaboration among states, entrepreneurs, and other stakeholders in the ecosystem."

"Indian industry, investors, high net-worth individuals (HNIs), mutual and pension funds should also consider participating (through funding) in the exciting journey of Indian start-ups. The potential upside of ideas coming from start-ups more than compensate for a few investments that may not give the desired results."

India has become the third-largest start-up ecosystem in the world with over 36,000 start-ups recognised under the Startup India initiative.

In order to promote Aatmanirbar Bharat, Goyal also pressed for three recommendations to focus on. First, reimagining products through innovation and disruptive technologies, second, redesign and re-engineer processes that result in reforming regulatory and age-old practices, and, lastly, work on people-centric ideas.

The 2019 ranking was compiled based on seven broad reform areas 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 and outreach.