Call Us Now

+91 9606900005 / 04

For Enquiry

Startup Ecosystem In India


Gujarat and Karnataka have been ranked as the best performers in developing startup ecosystem for budding entrepreneurs, according to the ranking of states and Union territories by the department for promotion of industry and internal trade (DPIIT).


GS II- Governance

Dimensions of the Article:

  1. Key Points
  2. About  National Startup Advisory Council(NSAC)
  3. Challenges faced by the Start up’s

Key Points:

  • Gujarat, Karnataka best states in providing strong ecosystem for startups.
  • Among smaller states having population of less than one crore, Meghalaya has been adjudged as the best performer.
  • For the third time in a row, Gujarat was ranked as the best performer.
  • The exercise is aimed at supporting states and Union territories (UTs) in developing their startup ecosystem and learning from each other’s best practices.
  • A total of 24 states and 7 UTs participated in the exercise, which ranked them under five categories — best performers, top performers, leaders, aspiring leaders and emerging startup ecosystems.
  • The states and UTs were also ranked under these five categories based on the population of less than one crore.
  • Kerala, Maharashtra, Odisha, Telangana and Jammu and Kashmir were categorised as the top performers.
  • Punjab, Tamil Nadu, Uttarakhand, Uttar Pradesh, Andaman and Nicobar Islands, Arunachal Pradesh, and Goa are in the leaders category.
  • States and UTs in the aspiring leaders’ category include Chhattisgarh, Delhi, Madhya Pradesh, Rajasthan, Chandigarh, Puducherry and Nagaland.
  • According to the ranking, the emerging startup ecosystems category includes Andhra Pradesh, Bihar, Mizoram and Ladakh.
  • They were evaluated across seven reform areas consisting of 26 action points, ranging from institutional support, fostering innovation, access to market, incubation and funding support.

About National Startup Advisory Council(NSAC):

  • It was constituted by the Department for Promotion of Industry and Internal Trade (DPIIT).
  • Objective: This is to advise the Government on measures needed to build a strong startup ecosystem.
  • Composition of the Council
  • Chairman: Minister for Commerce & Industry.
  • Convener of the Council: Joint Secretary, Department for Promotion of Industry and Internal Trade.
  • Ex-officio Members: Nominees of the concerned Ministries/Departments/Organisations not below the rank of Joint Secretary.
  • Non-official members, to be nominated by the Central Government, from various categories like founders of successful startups, veterans who have grown and scaled companies in India, persons capable of representing the interests of investors into startups, etc. The term of the non-official members will be for a period of two years.

Roles and functions:

  • Suggest measures to foster a culture of innovation amongst citizens and students in particular, promote innovation in all sectors of economy across the country.
  • Suggest measures to facilitate public organizations to assimilate innovation with a view to improving public service delivery, promote creation, protection and commercialization of intellectual property rights.
  • Suggest making it easier to start, operate, grow and exit businesses by reducing regulatory compliances and costs, promote ease of access to capital for startups, and incentivize domestic capital for investments into startups.
  • Mobilize global capital for investments in Indian startups, keep control of startups with original promoters and provide access to global markets for Indian startups.

Challenges faced by the Start up’s

  • Financial scarcity: Access to capital is important for startups, and obtaining sufficient funds is always a challenge.
  • Lack of Infrastructure: Incubators, science and technology parks, and other support mechanisms that play a vital part in the lifecycle of startups are lacking.
  • Regulatory bottlenecks: Starting and quitting a firm involves a number of government permits. Even while there is a noticeable difference, it remains a difficulty.
  • Compliance issues: For example, the earlier Angel tax, which has been repealed, is plagued by corruption and inefficiency in the bureaucracy.
  • Low success rate: Several firms fail as a result of a shift in focus away from the foundations of business.

-Source: Indian Express

December 2023