States Start Up Ranking Framework India - DPIIT

By : Neha Dhyani

Updated : May 19, 2022, 7:46

States Start Up Ranking Framework India is an evaluation tool that judges the country's startup ecosystem of different states. Every year, the ranking of different states is evaluated based on their facilities for startups. It is an outcome-oriented evaluation tool that aims to motivate states to offer a better ecosystem to startups and entrepreneurs. The last report for the startup ecosystem in India was released on the 11th of September 2020.

DPIIT (Department for Promotion of Industry and Internal Trade) is responsible for releasing the rankings under the States Start Up Ranking Framework India at frequent intervals. It is a framework designed to evaluate the performances of states and UTs under the Startup India Scheme. The current prime minister of India, Narendra Modi, has launched the Startup India Scheme to help entrepreneurs across the country. Several reform areas decide the performance of a state/UT in India. Read on to know the working of the States Start Up Ranking Framework India.

States Start Up Ranking Framework India - Overview

There are around seven reform areas used to measure the quality of the startup landscape in any state or UT. Every reform area has some action points that are given to a state/UT. Apart from the action points, every reform area has a total score. States and UTs are offered points based on the effectiveness of their startup ecosystem. In the end, the state/UT that has gained more points will be offering the best landscape for startups in India.

The ranking is done only after dividing the states and UTs into two groups. The two main groups for the States Start Up Ranking Framework India are Category 'X' and Category' Y'. In Category 'X' all states are included except for northeast Indian states. Assam is the only northeast Indian state to be included in Category 'X'. Also, Category 'X' includes one UT, which is the capital city of the country. Category 'Y' contains the remaining northeast Indian states and the capital city of the country. The classification of states is to ensure fair ranking in the States Start Up Ranking Framework India.

States Start Up Ranking Framework India - Action Points & Total Scores Across Reform Areas

As discussed above, every reform area has some action points and total scores. The major reform areas for the startup evaluation framework are as follows -

Reform Area	Action Points	Total Scores
Awareness & Outreach	4	8
Institutional Support	8	24
Incubation Support	4	23
Easing Public Procurement	6	14
Simplifying Regulations	3	12
Seed Funding Support	3	11
Venture Funding Support	2	8

States Start Up Ranking Framework India - Report for the year 2020

Category	Leader(s) in Category X	Leader(s) in Category Y
Best performer	Gujrat	Andaman and Nicobar Islands
Leader(s)	Bihar, Maharashtra, Odisha, and Rajasthan	Chandigarh
Aspiring leader(s)	Haryana, Jharkhand, Punjab, Telangana, and Uttarakhand	Nagaland
Emerging startup ecosystem(s)	Andhra Pradesh, Assam, Chhattisgarh, Delhi, Himachal Pradesh, UP, MP, and Tamil Nadu	Mizoram and Sikkim

States Start Up Ranking Framework India - A Unicorn Startup

With the startup ranking framework, the government also promotes unicorn startups. A startup firm with a valuation of more than USD 1 billion is termed a unicorn startup.

The States Start Up Ranking Framework India tells the best performers, top performers, leaders, aspiring leaders, and emerging startup ecosystems. Only dynamic statistics are used to evaluate the startup landscape in states and UTs. Learn more about the startup evaluation framework.

FAQs on States Start Up Ranking Framework India

Q.1. Which state was the best performer in Category 'X' of the States Start Up Ranking Framework India in 2020?

Gujrat was the best performer in Category 'X' of the States Start Up Ranking Framework India.

Q.2. Who was the best performer in Category 'Y' of States Start Up Ranking Framework India, according to the 2020 rankings?

Andaman and Nicobar Islands are the best performers according to the 2022 rankings in Category' Y' of States Start Up Ranking Framework India.

Q.3. What are the leading sectors for the startup ecosystem in India, with regards to the States Start Up Ranking Framework India?

Fintech, enterprises, heath-tech, e-commerce, and logistics are the leading sectors for startups in India, with the regard to the States Start Up Ranking Framework India.

Q.4. In the context of the States Start Up Ranking Framework India, what do you mean by a unicorn startup in India?

In the context of the States Start Up Ranking Framework India, A startup firm with a valuation of more than USD 1 billion is a unicorn startup in India.

Q.5. How many reform areas are there in States Start Up Ranking Framework India?

There are seven reform areas in the States Start Up Ranking Framework India.