The Department of Industrial Policy and Promotion (DIPP) has sought views of various stakeholders on its draft methodology to rank states and union territories this year on the basis of measures being taken by them to promote startups.
In the last ranking announced in December 2018, Gujarat has emerged as the best performer in developing startup ecosystem for budding entrepreneurs.
"We have drafted the methodology for states startup ranking 2019 with suggested pillars, action points and proposed weight for feedback. DIPP is seeking inputs on the proposed methodology," said a tweet by Startup India. This Twitter handle is managed by the department, which is under the commerce and industry ministry.
The draft discussion document has enlisted five broad principles for ranking. It includes more emphasis to be given on feedback from actual beneficiaries; the framework shall be designed to inspire states so that they can target newer and higher goals; different yardsticks may be used for evaluation for states with mature startup ecosystems; and distinction may also be made on the basis of large States and small states. The framework would evaluate progress made from May 1, 2018 to May 31, 2019.
The six pillars over which the department wants to rank states include awareness and outreach; easing public procurement; angel and venture funding support; seed funding support; incubation centres; and institutional support. There are 28 action points suggested in the draft under these six pillars. These points include clear definition of startups, support from various departments, special incentives for women entrepreneurs, online systems, startup registration process, mentor network, R&D facilities, and systems to avail funds. Further, it has also enlisted feedback questions such as whether startup is aware of the startup policy in the state; whether they are aware of initiatives and programmes by other states; contact details of nodal officer and department; and whether they are aware of seed funding guidelines provided by the state. As many as 22 states have so far formulated their respective startup policies. A total of 27 states and three union territories participated in the last year's ranking exercise.
Last year, the ranking framework covers seven areas of intervention and 38 action points, including policy support, incubation centres, seed funding, angel and venture funding and easier regulations.
The government launched Startup India Action Plan in January to promote budding entrepreneurs in the country. The plan aims to give incentives such as tax holiday and capital gains tax exemption.