From Locals to Globals: States' Role in India's Startup Evolution

The startup ecosystem of India has been ranked third in the world after the United States and China. The evolution of the startup landscape has occurred in the last 8 years. One of the key drivers for India’s robust startup ecosystem is dedicated Startup Policies in States and Union Territories.

According to a report released on National Startup Day, India's emergence as a global player in the startup ecosystem has been marked by the active participation of all states and union territories. This widespread enthusiasm has uniquely contributed to the overall entrepreneurial landscape, fostering innovation and driving economic growth.

“India's Startup journey has been remarkable from a niche ecosystem to a global powerhouse. This collectively possible through vibrant spirit of entrepreneurship, skilled talent, and an evolving digital landscape. The country is now a force to be reckoned with in the global Startup scene,” says the National Report on States’ Startup Ranking 2022 by Startup India under the Department of Promotion of Industry and Internal Trade (DPIIT).

Over the past seven years (2015-2022), there has been massive growth in the number of startups in the country:

This article explores the evolution and growth of the startup ecosystem in different states and union territories, highlighting the collaborative efforts between central government teams, such as Startup India, and state/UT nodal bodies.

Support to State Startup Ecosystem

The collaborative approach between the central government and state/UT authorities is pivotal in nurturing local startup ecosystems. Various central government teams, notably the Startup India team, work hand in hand with state/UT nodal bodies to facilitate the development of regional and local startup ecosystems. This collaboration involves providing guidance for the formulation and operationalization of startup policies that support stakeholders within the ecosystem.

States' Startup Policies

The report by the Department of Promotion of Industry and Internal Trade (DPIIT) highlights that a crucial aspect of fostering startup growth is the implementation of state-specific policies that offer essential funding, mentorship, and market access support. Currently, 31 out of the 36 states and union territories have dedicated startup policies, with 27 of these policies developed post the initiation of the Startup India initiative in 2016. It is noteworthy that each state and union territory hosts at least one DPIIT-recognized startup.

The report says that, “A States' Startup Policy is critical in providing the essential funding, mentorship, and market access support required by Startups to grow as important contributors to the States' economy in terms of revenue and job creation. The Startup India team provides active support to States in formulation and operationalization of Startup policies.”

The Key Initiatives and Activities Undertaken by Startup India

ASCEND Startup Workshops

Startup India has undertaken key initiatives to bridge knowledge gaps among entrepreneurs. ASCEND Startup Workshops have been organized in all eight northeastern states in collaboration with state governments. These workshops aim to empower startups with knowledge on topics such as company incorporation, fundraising, and translating ideas into sustainable businesses.

Himachal Pradesh

Recognizing the inclination of Himachal Pradesh's startup ecosystem toward early-stage ventures, the Startup India team recommended the establishment of a seed fund. This effort materialized with the official notification of the Himachal Pradesh seed fund scheme on October 20th, 2020.

Ladakh

Startup India worked closely with the Union Territory of Ladakh to set up the region's only incubation center. The team assisted in designing the incubation space and conceptualizing the support offered at the center, fostering entrepreneurship in Ladakh.

Andaman and Nicobar Islands

In collaboration with Startup India, the Andaman and Nicobar Islands executed a Startup bootcamp, providing startups with insights into Intellectual Property Rights and the benefits offered by both Startup India and the UT government.

Women Entrepreneurship

Startup India is actively committed to strengthening women entrepreneurship. Several states and UTs, including Andaman and Nicobar Islands, Andhra Pradesh, Assam, Bihar, and many others, have dedicated startup policies and initiatives to support women entrepreneurs.

The evolution of the startup ecosystem can be attributed to the collaborative efforts between the central government and state/UT authorities. As more states and union territories develop dedicated startup policies and initiatives, the entrepreneurial landscape continues to flourish, contributing significantly to the nation's economic growth and innovation. The future holds promise for further advancements as the ecosystem continues to evolve and mature.

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