Gujarat and Karnataka are ranked as the best performers in developing startup ecosystem for budding entrepreneurs, according to the ranking of States and Union Territories (UTs) by the Department for Promotion of Industry and Internal Trade (DPIIT). 

Kerala, Tamil Nadu and Himachal Pradesh are also categorised as the best performers. 

The ranking is a yearly exercise under the DPIIT that evaluates all States and UTs on their efforts to build an ecosystem conducive to startup growth. 

A total of 33 States and UTs participated in the exercise. They are ranked under five categories – best performers, top performers, leaders, aspiring leaders and emerging startup ecosystems. 

The States and Union Territories were broadly divided into two sections based on their population size – those having more than 1 crore and the ones with less than 1 crore population. 

Gujarat has been ranked as the best performer for the fourth time in a row. Karnataka has been ranked in this segment for the second consecutive year. 

The exercise is aimed at supporting States and UTs in developing their startup ecosystem and learning from each other’s best practices. 

Maharashtra, Odisha, Punjab, Rajasthan, Telangana, Arunachal Pradesh and Meghalaya are categorised as the top performers. 

Similarly eight States are categorised as leader, and that includes Andhra Pradesh, Assam, Madhya Pradesh, Uttar Pradesh, Uttarakhand, Goa, Manipur, and Tripura. 

The States and UTs are evaluated across 25 action points, ranging from institutional support, fostering innovation, access to market, incubation and funding support.