Gujarat has secured the top spot as the best-performing state in the latest national startup ecosystem ranking. The Department for Promotion of Industry and Internal Trade (DPIIT) released its fifth edition of the States' Startup Ecosystem Ranking on Friday, highlighting Gujarat's exceptional performance.
Top Performers and Evaluation Criteria
Arunachal Pradesh and Goa joined Gujarat in the 'Best Performers' category. Karnataka, Punjab, Tamil Nadu, Uttar Pradesh, and Himachal Pradesh were recognized as top performers in the assessment. DPIIT evaluated states and Union territories across six key reform areas and 19 specific action points. These areas included policy and institutional support, physical and digital infrastructure, access to funding, market access and linkages, capacity building for entrepreneurs, and innovation-led growth.
Gujarat's Government Initiatives and Support
Jitu Vaghani, the spokesperson for the Gujarat government, detailed the state's robust support system. Under its industrial policy, Gujarat has provided approximately Rs 65 crore to support around 430 startups. The state boasts over 200 incubators and about 350 grassroots startups. Vaghani emphasized that Gujarat aims to expand the Student Startup and Innovation Policy (SSIP) 2.0 and establish new iHub centres in major cities to further boost the startup environment.
Industry and Startup Community Reaction
Incubators, innovators, and startups based in Gujarat welcomed the ranking. They view this recognition as a strong motivation to enhance their performance further. Experts in the field stressed the importance of diversifying the sectors where startups operate. They also highlighted the need for effective hand-holding and mentoring programs to reduce early-stage failures and advocated for dedicated funding support to sustain growth.
Success Stories from Gujarat's Ecosystem
Neel Panchal, founder of LHP Nanotechnologies, shared his experience. He established a deep-tech startup in Gujarat because of the state government's initial support, funding opportunities, a well-developed ecosystem, and valuable connections that aided various aspects of his journey. Panchal suggested that shared specialized labs for young innovators could significantly help establish Gujarat as a research and development (R&D) hub. He also called for greater industry partnership to strengthen the ecosystem.
Ahmedabad's Role in Space-Tech Growth
Gaurav Seth, co-founder of PierSight, explained why Ahmedabad was a natural choice for their startup. The city's ecosystem includes Sac-Isro, which provided access to testing expertise and facilities. Additionally, local institutions like Atira, IN-SPACe, and IIM-A played crucial roles in their development. Seth noted that Gujarat's SpaceTech Policy is among the strongest in India, offering meaningful enablers such as launch cost assistance, capital support, and subsidies for space-tech manufacturing. He expressed confidence that Gujarat is emerging as one of the most promising space-technology hubs in the country, expecting more space-tech and deep-tech startups to choose Gujarat as their base.
