India's startup count rises to 2 lakh; Gujarat tops state ranking

Gujarat, Arunachal Pradesh, and Goa have been ranked as ‘the best performers’ in developing startup ecosystems, according to the Department for Promotion of Industry and Internal Trade’s (DPIIT) annual state ranking released on Friday.

Gujarat secured the top position for the fifth consecutive year. Karnataka, Punjab, Tamil Nadu, Uttar Pradesh, and Himachal Pradesh were categorised as ‘top performers’.

The ranking evaluated 34 states and union territories across six reform areas: policy support, infrastructure, funding access, market linkages, capacity building, and innovation-led growth. States were divided based on population size, above and below one crore.

Andhra Pradesh, Haryana, Kerala, Madhya Pradesh, Maharashtra, Rajasthan, Telangana, Uttarakhand, Manipur, Meghalaya, and Nagaland were classified as ‘leaders’, while Assam, Bihar, Jammu and Kashmir, Odisha, Andaman and Nicobar Islands, Mizoram, Sikkim, and Tripura were ranked as ‘aspiring leaders’.

Speaking at the Startup India event in New Delhi, on the occasion of National Startup Day, Commerce and Industry Minister Piyush Goyal highlighted the ecosystem’s growth from 400 startups in 2016 to over 2 lakh DPIIT-registered startups generating an estimated 21 lakh jobs.

Startups are now active across 50-plus sectors including deeptech, AI, quantum computing, agri-tech, space-tech, and drone technology. Goyal noted that Andhra Pradesh is emerging as India’s drone capital, while Karnataka and Tamil Nadu have become deeptech and AI hubs.

Nearly 100 countries are seeking startup collaborations with India, with FTAs (free trade agreements) providing significant opportunities for investment and global expansion, the minister said.