Bihar & Ladakh Among India’s Emerging Startup Ecosystems In States’ Startup Ranking 2021

In States’ Startup Ranking 2021, Bihar, Andhra Pradesh, Mizoram and Ladakh were adjudged to be India’s ‘Emerging Startup Ecosystems’, with newly-minted startup policies and a renewed focus on solving the unique solutions of these states with the help of startups.

At an event on Monday, the Union Minister of Commerce and Industry, Piyush Goyal announced the results of the third edition of the States’ Startup Ranking 2021, placing the expected names of Karnataka and Gujarat as the best performers.

The Union Minister, quoting DPIIT figures, stated that India has 70,809 registered startups, with the number set to increase in the coming years. Goyal also urged the state governments to get startups onboarded to the government’s systems for an accurate representation of India’s startup ecosystem.

The report scores a state on a scale of 100 with 26 action points such as funding, mentorship and institutional support. The positions have been awarded based on the percentile a state achieved within these action points. 

A total of 24 states and 7 UTs participated in the ranking report, based on the Startup Ranking Framework 2020.

Many states overperformed from their expectations, such as Meghalaya finishing as the best performer, and becoming the highest-ranked northeastern state in the process. At the same time, some regions underperformed from their expectations, such as Delhi. 

Home to more than 31 unicorns, the national capital could only secure a mid-table spot in Aspiring Leaders. One would be forgiven to expect Delhi to finish much higher; after all, it has the highest number of registered startups at more than 6,500.

The limelight, however, should be shed on the emerging startup ecosystems in the country. The Department for Promotion of Industry and Internal Trade (DPIIT), which also presents the States’ Startup Ranking report, has continuously batted for a nationwide startup ecosystem, with no district left without a startup.

On the other hand, Andhra Pradesh, Mizoram and Ladakh have only participated in 11 or fewer action points as in the Startup Ranking Framework 2020, which depicts that these states have participated in the Startup Ranking report for the first time.

Here are the four Emerging Startup Ecosystems of India, set to become startup hubs in the future.

Emerging Startup Ecosystems In States’ Startup Ranking 2021

Bihar

The best-placed state on the list, Bihar participated in all 26 action points of the ranking framework. The state’s startup ecosystem is nascent and so is the support mechanism provided to the same. Bihar’s best-performing metric was capacity building of enablers, with the state scoring the 20th percentile.

Out of the seven total metrics, access to market, incubation support, funding support and mentorship support were scored zero. The only other scored metrics were institutional support (19th percentile) and fostering innovation and entrepreneurship (2nd percentile).

According to the DPIIT figures, Bihar has around 180 registered startups, with more than 80 registered mentors. Bihar has allocated more than INR 50 Cr in the budget to support its growing startup ecosystem. The state also has adopted a startup policy in 2017 to grow its gross state domestic product (GSDP).

Andhra Pradesh

One of the youngest states of India, Andhra Pradesh has participated in the States’ Startup Ranking for the first time, having participated in eight action points of the ranking framework. Andhra’s best-performing metric was capacity building of enablers, with the state scoring in the 20th percentile.

The only other non-zero metrics were institutional support (6th percentile) and fostering innovation and entrepreneurship (2nd percentile). Andhra Pradesh did not participate in many action points and therefore ended up at the zeroth percentile across four metrics. 

The state has only just started to set up institutional support for its startup ecosystem, with the Andhra Pradesh Innovation Society being the nodal institution for startups. The state’s IT department introduced a policy to support startups in 2021, having set up five incubators across five districts. The state claims to have more than 20 registered startup mentors as well. The state is targeting to establish 100 startup incubators and accelerators, incubating more than 5,000 startups in the process.

Mizoram

The only northeastern state on the list, Mizoram also participated in only 11 action points out of 26. As has been the case with both Bihar and Andhra Pradesh, Mizoram’s best-performing metric was capacity building of enablers, with the state scoring in the 33rd percentile.

Mizoram scored 11th percentile for its institutional support and 2nd percentile for fostering innovation and entrepreneurship. The other four metrics remained at zero.

According to the DPIIT figures, Mizoram has more than 100 registered startups, with more than two state-supported and private incubators and more than 20 registered mentors. Out of the 100 registered startups, 35 are women-led, making Mizoram one of the best states in the country with 35% women founders in startup leadership.

The state also adopted its startup policy in 2019, with a vision to create a startup ecosystem, facilitate nurturing of startups and promote a culture of innovation.

Ladakh

One of the two newest union territories, Ladakh participated in only four of the 26 action points, with its only scoring metric being the capacity building of enablers (33rd percentile).

Ladakh did not participate in the majority of the metrics and hence has understandably scored zero on six of the seven metrics. The UT has adopted the Ladakh Innovation and Startup Policy in 2019 as a measure to develop its startup ecosystem and foster entrepreneurship in the region.

Under its startup policy, Ladakh is providing financial incentives, capacity development academia and infrastructure support. Ladakh is working to develop incubators in the district of Kargil and Leh and has set aside INR 5 Cr for the same. The UT does not maintain figures on the number of startups and the number of mentors.