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States’ Startup Ranking 2022

  • 22 Jan 2024
  • 8 min read

For Prelims: Startup Ranking 2022, National Startup Award,2023, Startup.

For Mains: Role of Startup in promoting Culture of Innovation, Ease of Doing Business and issues related to it.

Source: TH

Why in News?

The results of the 4th edition of Ranking of States on Support to Startup Ecosystems were released by the Ministry of Commerce and Industry.

  • This edition’s ranking exercise saw the highest-ever participation with 33 States and UTs participating.
    • A ‘National Report’ encompassing the full exercise, along with a ‘Compendium of Best Practices’ and individual ‘State Report’ for all participating states was also launched, celebrating the spirit of entrepreneurship in India with a total of 31 States/UTs having formulated State Startup Policies.

What is States’ Startup Ranking?

  • About:
    • The Start-up India initiative of the Government of India envisages to build a robust Start-up ecosystem in the country for nurturing innovation and providing opportunities to budding entrepreneurs.
    • The Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry has been conducting the States’ Start-up Ranking Exercise since 2018.
      • The exercise plays a crucial role in easing the business environment for start-ups in the country.
  • Objectives:
    • Help bring to the fore progress made by the States/ UTs for promoting the Startup ecosystem.
    • Foster competitiveness & propel the States/ UTs to work proactively.
    • Facilitate States/ UTs to identify, learn and replicate good practices.
  • Classification: States and Union Territories are classified into 5 Categories:
    • Best Performers
    • Top Performers
    • Leaders
    • Aspiring Leaders
    • Emerging Start-up Ecosystems.
      • Note: The 'Beginner list' was part of earlier rankings but has been discontinued since 2019.

What are the Findings of States’ Startup Ranking 2022?

States and UTs were divided into two categories:

  • Category A (Population> 1 crore) and Category B (Population< 1 crore)

  • 7 broad Reform Areas:
    • The participants were evaluated across 7 broad Reform Areas consisting of 25 Action Points such as:
      • Institutional Support
      • Fostering Innovation and Entrepreneurship
      • Access to Market
      • Incubation and Mentorship support
      • Funding Support
      • Capacity building of enablers
      • Roadmap to a sustainable future.
    • 15% of the total scores were awarded based on 10,000+ survey responses collected in 9 languages (telephonic and web-based).

  • Status of Indian Startup Ecosystem:
    • The number of recognized Startups has grown at 120% (CAGR) over the last 7 years and stands at over one lakh Startups as of October 2023.
    • The coverage of Startups has increased sixfold in the last seven years with presence in close to 670+ districts across the country.
    • Close to 50% of the recognized Startups are based out of Tier 2 and Tier 3 cities.

What are the Initiatives Taken to Promote Startup?

  • Funds of Funds (FoF) Scheme:
    • The FoF for Startups Scheme, established in June 2016 with a corpus of Rs. 10,000 Cr, aims to boost the Indian Startup ecosystem by spreading contributions over the 14th and 15th Finance Commission cycles based on implementation progress, facilitating access to domestic capital.
  • Startup India Seed Fund Scheme (SISF):
    • SISF, approved for a four-year period from 2021-22 with a corpus of Rs. 945 Cr, provides financial aid to Startups for proof of concept, prototype development, product trials, market entry, and commercialisation.
  • Startup India Investor Connect:
    • Startup India Investor Connect facilitates AI-based matchmaking to connect startups with investors, streamlining the process for entrepreneurs to pitch their ideas to multiple investors through a single application.
  • Startup India’s Multilateral Engagements: Startup20:
    • Startup20, established during G20 India Presidency 2023, is a dedicated global platform for startups, mirroring B20 for large enterprises. India's Startup20, now the third-largest ecosystem globally, boosts its standing as a startup hub.
    • As a dialogue forum, it engages with G20 leaders on macroeconomic issues, supported by G20 India Sherpa and the Startup20 secretariat.
  • Other Intervention Under the Startup India Initiative:
    • Startup India Innovation Week:
      • DPIIT organises Startup India Innovation week around the National Startup Day, i.e., 16th January, with the primary goal to bring together the country's key Startups, entrepreneurs, investors, incubators, funding entities, banks, policymakers, and other national/international stakeholders to celebrate entrepreneurship and promote innovation.
    • Handholding support under National Startup Awards (NSA):
      • It is an initiative undertaken by Startup India to recognize and reward Startups and ecosystem enablers who are building innovative products and scalable enterprises, with high potential of employment generation or wealth creation, demonstrating measurable social impact.
    • MAARG Portal:
      • MAARG Portal by Startup India is a one-stop mentorship platform to facilitate mentorship for startups across diverse sectors, functions, stages, geographies, and backgrounds.
  • Other Related Initiatives for Startups:

What are the National Startup Awards 2023?

The National Startup Awards 2023 is one of the flagship initiatives undertaken by Startup India to recognize and reward outstanding startups and enablers that demonstrate exceptional capabilities.

  • Consideration is also given to champion sectors identified by the Government with a focus on improving India’s manufacturing capabilities towards the mission of an “Atma Nirbhar Bharat”.
  • Key Facts:
    • The fourth edition of the National Startup Awards has received over 2,000 applications, testifying to the increasing acceptance of the initiative among startup ecosystem stakeholders across the board.
    • NSA 2023 has actively engaged across diverse sectors of the economy and showcased a remarkable commitment to inclusivity.
    • A large number of startup applications for NSA 2023 have women in the leadership positions of their enterprises.
    • Additionally, many applications have also nominated themselves as sustainability champions, focused on climate change, sustainability, waste management, renewables, or allied sectors.

UPSC Civil Services Examination, Previous Year Questions (PYQ)


Q. What does venture capital mean? (2014)

A. A short-term capital provided to industries

B. A long-term start-up capital provided to new entrepreneurs

C. Funds provided to industries at times of incurring losses

D. Funds provided for replacement and renovation of industries

Ans: B


Q. “Success of ‘Make in India’ program depends on the success of ‘Skill India’ programme and radical labour reforms.” Discuss with logical arguments.(2015)

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