Department of Industrial Policy and Promotion (DIPP) released the first-ever state start-up rankings on the basis of the start-up policy framework formulated by the Central Government in December 2018. The ranking framework measured and compared the results of the start-up initiatives and exercises undertaken by various State governments.
The rankings revealed that Manipur, Mizoram, Nagaland, Sikkim and Tripura along with Chandigarh and Puducherry are at the bottom of the pile under the ‘beginners’ category while Assam was included in the ‘emerging states’ category. Gujarat topped the list as the best performer. The ‘top performers’ include Karnataka, Kerala, Odisha and Rajasthan.
The ranking was based on over three dozen action points divided across seven broad categories, including the States’ start-up policy and its implementation, incubation support, seed funding, angel and venture funding, simplification of regulations, easing public procurement, and awareness and outreach. A total of 27 states and three union territories participated in the exercise.
Experts cite lack of start-up ecosystems in the Northern as one of the prime reasons why these States are lagging behind.
The Central Government launched the Start-up India Action Plan in January last year to promote budding entrepreneurs. The plan aims to give incentives such as tax holiday, an ‘inspector raj-free’ regime and capital gains tax exemption.